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Monday, June 8, 2009.

From Creamer Media in Johannesburg, I'm Jonathan Faurie.

Making headlines today:

On Monday, the North West Iron Ore Alliance said that the proposal by diversified miners BHP Billiton and Rio Tinto to merge their iron-ore operations, could lead to significant job losses in Western Australia. This highlights the importance of promoting the junior iron-ore sector.

NWIOA deputy chairperson Dr Justin Walawski said that the new joint venture could generate savings for the pair of about 12-billion-dollars.

He said that this highlighted the importance of diversifying the industry, creating new employment and development opportunities and reducing dependence on a small number of large resource companies.

Walansi stated that the NWIOA alone could, once fully operational, provide direct employment opportunities for between 600 and 800 people, and two to three times that number again in indirect employment.

On Saturday, the China Nonferrous Metal Mining Corp pledged to invest 400-million-dollars in Zambia's Luanshya Copper Mines. This was after formally taking over the running of the mines.

Mines and Minerals Development Minister Maxwell Mwale said CNMC would also develop the Mulyashi project. Previous owners of LCM had said the mine could start producing 60 000 tons of copper cathode by 2010.

The re-opening of the Baluba mine would make it possible to reemploy some of the 1 740 miners who were laid off after the mine was placed under care-and-maintenance at the end of last year.

Also making headlines:

China says BHP Billiton and Rio Tinto's iron-ore joint venture is monopolistic.
Australia's OZ Minerals rejects a recapitalisation proposal led by RFC Group and Royal Bank of Canada, leaving the way open for a previous offer by China's Minmetals.
Steel producers want a competition probe of the Rio/BHP iron-ore deal.
And, India may allow commercial coal mining by private companies.

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