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Monday, July 6, 2009.
From Creamer Media in Johannesburg, I'm Amy Witherden.
Making headlines today:
Africa-focused emerging miner Central African Mining & Exploration Company has entered into a long-term sales agreement with China's Zhejiang Galico Cobalt & Nickel Materials, to deliver its Mukondo Mountain mine's entire annual production of cobalt-contained concentrate.
The mine, in the Democratic Republic of Congo produces between 6 000 t/y and 8 000 t /y of cobalt in contained concentrate.
The product will be sold to Galico, one of the largest chemical salt producers in China, at prevailing market prices.
The board of Anglo American will surely consider a merger proposal from Xstrata at a price that recognises Anglo's top-tier assets, says major Anglo shareholder Old Mutual.
If Xstrata sticks to its "merger of equals" plan, Anglo would be better off remaining independent, says Anwaar Wagner, portfolio manager at Old Mutual Investment Group.
It is up to Xstrata whether they want to come back with an improved proposal that is more acceptable to Anglo shareholders, said Wagner.
If the price adequately compensates for the significant dilution of Anglo's unique exposure to the structurally attractive platinum, coking coal, iron-ore and diamond markets, the board should consider it.
Also making headlines:
A rise in import duties is likely to hit India's gold and silver demand.
BRC Diamondcore will appeal a liquidation order.
Cape Lambert Iron Ore is to bid for Corvette Resources.
And, Arc Exploration completes the sale of its Cibaluing gold project in Indonesia.
That's a roundup of news making headlines today. For more on these and other stories, please visit miningweekly.com.