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Monday, October 27, 2008.

From Creamer Media in Johannesburg, I'm Shannon O'Donnell.

Making headlines today:

JSE-listed gold and uranium producer Simmers & Jack said the build-up of the company's Buffelsfontein gold mine and the Transvaal Gold Mining Estates would require a capital investment of about 99,8-million dollars over the next five years.

The build-up of the mines would include a Mega Float project at Buffelsfontein and the implementation of bioleaching and heap leach technology at the Transvaal Gold Mining Estates.

Simmers chief executive Gordon Miller said that in April, the company announced an aggressive development plan aimed at substantially growing its production base through the implementation of low-cost, low-risk surface and near-surface development projects.

The reality, however, was that capital market conditions to fund new growth projects had deteriorated significantly since April. The revised reports had been tailored to reduce external funding requirements and allow for a "more gradual" build up of production, from the company's new growth projects.

On Friday, diversified mining company African Rainbow Minerals said that that Assmang would switch off two of its ferrochrome furnaces at the Machadodorp works, in South Africa, citing adverse marketing conditions.

Assmang, jointly owned by ARM and Assore, said the move was prompted by the sudden decline in demand for its products in the spot commodity markets, more specifically the demand for ferrochrome and chrome ores. Ferrochrome is used mainly in the production of stainless steel.

The global outlook for commodities have turned gloomy in recent weeks as demand weakened on concerns that the global credit crisis will lead to a slowdown in infrastructure spending.

Demand from China, one of the largest consumers of metals, was also set to weaken, leading to some of the world's largest mining companies announcing plans to review capital expenditure programmes.

Also making headlines:

South African gold junior Pamodzi resorts to a 'do-it-yourself' raising of 400-million rand.
Senegal's Minister of Mines says the Faleme mine project is on track.
Copper and cobalt miner Katanga Mining reviews its capital spending.
And, AIM-listed West African Diamonds is battered by the financial storm.

That's a round up of news making headlines today. For more on these and other stories please visit miningweekly.com.