Thursday, October 30, 2008.

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

Making headlines today:

On Wednesday, Gold Fields CEO Nick Holland said that a higher gold price was on the way with $1 000/oz possible in 2009.

He said that the current market contagion had resulted in the "indiscriminate" selling down "even of gold" and, in addition, the base-metals pullback had "dragged gold down" with it.

But, he said gold would regain its value relative to everything else, particularly as all the major currencies of the world were trading on negative real interest rates and inflation was picking up. These are the ingredients for a stronger gold price.

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Australia's largest gold producer, Newcrest Mining, sees ample acquisition opportunities ahead. Its low debt levels mean it has the firepower to take advantage of these opportunities.

MD Ian Smith said other miners were knocking on its door with joint venture offers. If any tempting opportunities or acquisitions appeared, Newcrest had plenty of scope to raise equity or debt.

Smith said that there were a whole range of opportunities in mergers and acquisitions and it would probably get better over the upcoming six to 12 months.

He didn't give specific details of any potential takeover opportunities, saying only that there were chances in Australia and elsewhere.

Also making headlines:

Chile trims its 2008 copper output forecast again.
Vancouver-based Baja Mining delays its Mexico project until the market improves.
BHP Billiton chief Marius Kloppers says its Rio Tinto offer is still compelling.
And, Australia's Mincor Resources cuts its nickel output target.

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