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Tuesday, June 23, 2009.

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

Making headlines today:

The board of Anglo American has unanimously rejected a proposal from rival Xstrata Plc that the companies consider a "merger of equals".

The company said that a strategic case for the combination is unattractive for Anglo American shareholders.

A statement issued by the company said that a combination with Xstrata would profoundly impact the nature of the group's portfolio by significantly diluting Anglo American's unique exposure to the structurally attractive platinum, iron ore and diamond markets, while increasing exposure to nickel and zinc.

Anglo American controls the world's biggest platinum miner, Anglo Platinum, and holds a 45% stake in diamond giant De Beers, as well as almost 70% of South African iron-ore producer Kumba Iron Ore.

Zimbabwe's Prime Minister Morgan Tsvangirai said the country was reviewing its indiginisation law and would likely lower the 51% requirement for local ownership of foreign firms investing in the country.

The new coalition government hopes to agree to a new local ownership level that is "comfortable" for investors, but still beneficial to the mineral-rich nation.

Tsvangirai said he supported the concept of encouraging local businesspeople, but the law also had to be fair to overseas investors.

He said that while there was nothing wrong with indiginisation, it was wrong to expect someone to bring money into the country and for the government to take 51% of that.

Also making headlines:

The National Union of Mineworkers applaudes Anglo American's outright rejection of Xstrata's "merger of equals" plan.
China extends its gas safety campaign to big coal mines.
Kazakhstan's state welfare fund may buy stakes in some local mining companies hit by the global crisis.
And, Zimbabwe's Metallon Gold resumes gold mining.

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