November twenty one, two thousand and seven

From Mining Weekly in Johannesburg, I am Guy Copans.

In our lead story this week:

It is all systems go for South Africa’s first new greenfields manganese project in over three decades, as the development company signs up an equity partner.

Empowered South African development company, Kalagadi Managanese, has selected ArcelorMittal, the world’s largest steel company, as its strategic equity partner in a four, two billion rand deal that will fund a new manganese project.

Kalagadi Managenese and ArcelorMittal formed a 50:50 joint venture to develop a manganese mine and sinter plant, near Hotazel, in the Northern Cape, and a ferromanganese smelter at Coega, in the Eastern Cape.

In neighbouring Zimbabwe, the government has published a draft legislation to give the State a free twenty five per cent stake in all mining companies operating in that country.

The legislation will also force mining firms to be majority owned by Zimbabweans.

Zimbabwe Chamber of Mines CEO Douglas Verden says it is still studying the bill, but that the new law did not look very helpful to the mining industry.

Nuclear fuel producer Uranium One CEO Neal Froneman says there is no reason why the price of uranium cannot scale to new peaks in the next year to eighteen months.

He says production difficulties across the globe, such as the shortage of sulphuric acid used in uranium extraction, can drive the price above previous highs of hundred and thirty eight dollars a pound.

The world’s largest diversified miner BHP Billiton CEO Marius Kloppers has defended the company’s bid for smaller rival Rio Tinto, saying the integration of the two mining giants will help to meet China’s need for greater volumes.

Also in this week’s Mining Weekly Online:

South African miner Harmony Gold has completed the review of its uranium assets and says a decision on what it planned to do with its nuclear fuel assets will be made in January.

The firm can exploit its uranium assets by itself, partner with another company, or sell them off - either as a package or alone.

Gold Fields says its Cerro Corono project, in Peru, has been delayed by about four months and that the project’s cost has jumped by almost 23% to four hundred and twenty one million dollar and,

One of the world’s largest platinum miners, Anglo Platinum, has cut its 2007 production forecast by fifteen thousand ounces owing to safety problems and strikes at its South African mines.

And in this week’s Mining Weekly magazine, out on Friday, read our cover story, on Trans Hex and its planned foray into local diamond beneficiation.

We also look at the recently released Johnson Mattheys platinum report, and report on Lonmin’s hopes for consolidation.

Finally, don’t miss our features on hi-alloy castings, hydraulics, pneumatics and hydropower, and explosives in mining.

That’s a round up of this week’s stories on Creamer Media’s Mining Weekly. For more on these and other stories, visit miningweekly.com