Mining

The Mining Business Outlook report, published by Newport Consulting, found that falling global commodity prices and increasing operating costs are influencing future investment into the industry.

• 56 percent of mining leaders still planned to spend on major capital expenditure
• 20 percent of mining projects stalled by industrial action from unions
• 24 percent of Australia's mining leaders were very optimistic (only half compared to previous year)

Anglo-Australian company BHP Billiton (BHP) expects to exceed its iron ore production guidance of 159 million tonnes after its first half production increased by 23 per cent.

BHP produced 41,072 million tonnes of iron ore in the second quarter, which is four per cent higher than the first three months of the the fiscal year. The iron ore production of the company increased 23 per cent to 80,644 million tonnes for the first half compared to the previous corresponding period.

Magnetite producer Grange Resources (GRR) is selling a portion of its stake in the Southdown iron ore project in Western Australia to add more fund to the $2.57 billion export venture. Grange currently owns 70 per cent stake of Southdown as Japan's Sojitz owns the other 30 per cent.

Chinese controlled Moly Mines (MOL) has put its $700 million Spinifex Ridge molybdenum and copper project on hold due to molybdenum price decrease and strong Australian dollar. The company, however, will return in the market with a fund lower at $US244 million from its financier China Development Bank, which was previously amounted to $454 million.

Shares in Newcrest Mining (NCM) have declined by 99 per cent at $30.08 yesterday after the market reacted to the downgrade in the company's gold production in Monday. The share prices were shortly below $30 before the day ended to its closing price, which is currently the lowest the company has plumbed in more than 27 months.

Alliance Resources (AGS) have settled its long-running litigation with joint venture partner US Group Healthgate but kept the details of the settlement in confidential. Finally, the Four Mile Project for a uranium mine will be starting to develop after its delay.

Rio Tinto (ASX:RIO) is on target to meet its 2011 iron ore production and surpass last year’s record profit of US$14.32 billion. In its third quarter production report, Rio posted new quarterly records for iron ore sales and coking coal production.

Atlas Iron (ASX:AGO) will adopt monthly pricing this financial year after its long term supply contracts expire.

''As new contracts are entered or renewed, Atlas will be generally looking to shorten the pricing reference period from quarterly to monthly to ensure that a price more reflective of current conditions is received,'' said Atlas in its annual report.

Several three-year contracts started in 2008 and early 2009 are due to expire this year.

Rio Tinto (ASX:RIO) and Ivanhoe Mines will keep their profits from the Oyu Tolgoi copper and gold mining project without the Mongolian government taking a higher stake.

Together with the two miners, the government last night issued a statement saying it will continue to support the existing investment agreement, wherein section 15.30 requires all three parties to consent to any amendments.

Sundance Resources (ASX:SDL) has recommended a $1.65 billion takeover bid from China's Hanlong Mining. The sweetened price represents a 65.3 percent premium to Sundance's volume weighted average price in July.

To win the Sundance board over, Hanlong raised its original 50 cents per share offer to 57 cents a share, a 14 percent increase. The privately-held Chinese company has its eye on Sundance's Mbalam iron ore project in Africa's Cameroon and Congo.