Russian steelmaker MMK is to buy Australian group Flinders Mines for an agreed $538 million to boost mining operations and stabilize supply: IMMDH – International Mineral Mining Development Holdings

Perth, WA -- (SBWIRE) -- 12/07/2011 -- Russian steelmaker MMK is taking over Australia's Flinders Mines for $537m (AUD$554m). MMK is offering $0.30 cash per share, representing a 92.5% premium to Flinders' 30-day volume weighted average share price as of November 22. Magnitogorsk Iron & Steel Works (MMK) has been seeking to boost its mining operations and increase the proportion of iron ore demand it can supply itself. Currently, it is 30 per cent self-sufficient in iron ore, according to analysts. The deal will make the steelmaker self-sufficient in ore supplies. Steelmakers have been buying upstream assets to lock in supply and keep costs down, allowing them to remain profitable during downturns. Arcelor Mittal, the world's largest steelmaker, is also one of the top five producers of iron ore and coking coal. MMK's deal comes a day after Japanese group Mitsubishi Corp offered to buy Murchison Metals' stakes in another iron ore project and infrastructure in Australia for $315 million.

Analysts, however, said the deal raised questions about the success of MMK's existing iron ore project, Prioskol. The acquisition will probably not contribute to earnings until 2015 at the earliest. According to Kommersant Daily, MMK has a lack of ore resources and is very sensitive to changes in prices on the market. In the latest financial report for the 1H of 2011 the company mentioned the adverse effect of raw materials price increase on its financial performance saying in a statement: "In the 1H 2011 Iron ore was up 30%, coal up 15% and scrap up 5%." Flinders' major asset is its Pilbara iron ore project (PIOP), in the region of the same name in the state of Western Australia, targeting production by early 2015 with estimated annual volumes of 15 million tons/year of saleable product, according to MMK. The project contains a total resource of 917.3 million tons at 55.2% iron and would be able to produce at 15 million tons/year, according to Flinders. A definitive feasibility study on the Pilbara project is due to be completed in the second quarter of 2012.

MMK is offering 6.12 times the book value of Flinders' assets, compared with a multiple of 2.5 for 10 similar deals, according to data compiled by Bloomberg. The premium compares with a 34% average premium for global diversified minerals deals of more than US$100 million announced in the past 12 months. Analysts also pointed to debt at MMK, which had long term borrowings of $2.6 billion at the end of June and total non-current liabilities of $4.2 billion. MMK said earlier in the week, in a statement expressing interest in Flinders, that it could obtain a loan from Bank of Moscow for up to $100 million. Bank analysts say that MMK, which had about US$400 million of cash at the end of the first half and has agreed on a US$100 million bank loan, will have no problem for raising funds for the deal. The Russian company may need to invest about US$1 billion in developing the project. MMK may use its 5% stake in Fortescue Metals Group, worth about US$700 million, to fund the acquisition. Flinders' Board of Directors unanimously recommends that all Flinders shareholders vote in favour of the acquisition.

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Nautilus Minerals has revealed new mineral resource estimates following a successful exploration drilling campaign at its tenements in the Bismarck Sea off Papua New Guinea.

Perth, WA -- (SBWIRE) -- 12/02/2011 -- Nautilus Minerals Inc., which is focused on exploring for mineral deposits on the ocean floor, said on Friday positive drill results have allowed it to raise its resource estimate at its Solwara 1 copper-gold project that is located off the coast of Papua New Guinea. The increases in contained metal within the resource are a result of additional tonnes, and importantly, higher grades, due to successful resource drilling which identified further high grade ore zones. The increase in tonnes was also partly due to a reduction in the cut-off grade from 4% copper, used in the prior 2008 resource statement, to a copper equivalent cut-off grade of 2.6% in the 2011 resource, following refinements in the project design. Nautilus president and CEO Steve Rogers said the notable increase in the company's resource base demonstrated the success of the exploration campaign, extending the life of the Solwara 1 Project and delivering an improved knowledge of the Bismarck Sea geology.

The company further raised the size of its contained copper and gold resources, as its drill campaign located higher grades. The Vancouver, British Columbia-based company said total indicated resources at the site have risen 18 per cent, and a 36 per cent increase in inferred resources over the company's previous 2008 estimate. It also raised the size of its resources in the inferred category to 1.8 million tonnes.

The company was able to significantly boost its NI 43-101 compliant resource base by lowering its copper cut-off grade to 2.6 per cent, from four per cent, it said. The results of the update are based on 276 drill holes, mainly the company's 1,475-metre drill campaign conducted between November 2010 and May 2011. At the 2.6 per cent copper grade, the Solwara 1 property has 1.03 million tonnes grading 7.2 per cent copper and 5.0 grams per tonne (g/t) gold, for 74,160 contained tonnes of copper and 165,500 contained ounces of gold in the indicated category. In the inferred category, Nautilus has 1.54 million tonnes at 8.1 per cent copper and 6.4 g/t gold, for 124,740 tonnes of copper, and 316,900 ounces of gold. At the previous 4 per cent copper cut-off grade, the Solwara 1 project has 70,070 tonnes of contained copper and 158,000 ounces of contained gold in the indicated category, and 120,120 tonnes of copper and 302,800 ounces of contained gold in the inferred category. On the Solwara 12 deposit, at the 2.6 per cent copper cut-off grade, the company measured 230,000 tonnes grading 7.3 per cent copper and 3.6 g/t gold for 16,790 tonnes of contained copper and 26,600 ounces of contained gold in the inferred category. The Solwara 1 resource estimate also contained substantial zinc and silver.

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Perth, WA -- (SBWIRE) -- 12/01/2011 -- Thousands of people in northern Peru are protesting against plans for a huge open-cast gold mine in the high Andes. Schools and business were closed and buses were off the streets on Thursday in the Andean city of Cajamarca, about 900km northeast of Lima, in a protest against the $US4.8 billion ($A4.9 billion) Conga Project run by US-based Newmont Mining Corporation. The open-pit gold and copper Conga Project involves moving the water from four lakes located high in the mountains into reservoirs the company would build. People in the Cajamarca region say the proposed Conga mine will cause pollution and destroy water supplies. Locals say plans to replace the lakes with artificial reservoirs are inadequate. There are also fears that pollution from the mine could affect agriculture and livestock. The company behind the project, the Newmont Mining Corporation, says its plans have been drawn up in consultation with local communities and meet the highest environmental standards.

The owners of the Conga Project said in a statement that the building was set ablaze. They complained that police stood by idly and that the Cajamarca regional president, Gregorio Santos, led the trespassing protesters. The mine is located in the northern highland state of Cajamarca. The protests have been slowly mounting since mid-October despite efforts of President Ollanta Humala's government to mediate the conflict. They complain he has reneged on campaign promises to protect their water. According to analysts, failure by Humala to contain the protests may discourage mining projects expected to invest $50 billion over the next decade. Newmont fell $1.58, or 2.4 per cent, to $64.21 at the Nov. 23 close in New York.

The Conga Project would be the biggest mining investment in the country's history. Protesters last month destroyed $2 million of earth-moving equipment at the Minas Conga project, which is being developed by Newmont and partner Cia. de Minas Buenaventura SAA, which owns 44 per cent of Newmont's neighbouring Yanacocha mine. Yanacocha is the largest gold producer in Latin America and had output of 1.46 million ounces of gold last year. Yanacocha is slated to boost output to 2.5 million ounces by 2017 by tapping new underground ore reserves at the open-pit deposit. Peru is the world's No. 2 producer of copper and No. 6 gold producer. Mining is the motor of its economy, accounting for 61 per cent of exports. Work at the mine, which employs 6,800 people, was halted as a precautionary measure on Wednesday. Peru's left-wing President, Ollanta Humala, has approved the Conga mine, which would be a major source of government revenue, but this stance has been criticised by some of his supporters.

International Mineral Mining Development Holdings perceives the protests as a mixed blessing for Peruvian mining companies, and believes that sustainable small to mid-scale mining is the way forward. "Massive strip mining operations can devastate local environments and communities if executed irresponsibly. It is our mission to enable successful mining operations that have minimal negative effects on the environment while building thriving local communities." Stephen Boyd - Senior Metals and Mining Strategist, International Mineral Mining Development Holdings.

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International Mineral Mining Development Holdings Report: The Australian parliament's lower house has passed divisive laws for a profit tax on mining companies.

Perth, WA -- (SBWIRE) -- 12/01/2011 -- Australia's controversial tax on the country's mining industry, cleared a key hurdle Wednesday when it passed through the lower house of parliament. Prime Minister Julia Gillard's fragile minority government gained support from the Greens to enable the Minerals Resource Rent Tax Bill 2011 to scrape through the House of Representatives after a marathon session in the early hours. London-listed shares in Rio Tinto fell as much as three per cent, before recovering to close the day down 2.3 per cent at £29.86. Woes in the Chinese economy also weighed on the stock. The ruling Labor Party secured support from independent lawmakers and the minority Greens Party for the levy, known as the Mineral Resource Rent Tax, or MRRT, which is aimed at redistributing the proceeds of what politicians describe as a once-in-a-century mining boom.

BHP Billiton Ltd., the world's No. 1 mining company, declined 3.1 per cent in Sydney after Australia's House of Representatives passed the law. The MRRT is a compromise following a previous version of the tax that was vociferously opposed by the mining industry, in a campaign that contributed to the internal party revolt against former Prime Minister Kevin Rudd last year. Australia is the world's biggest exporter of the iron ore and coking coal used in steelmaking and the second-largest exporter of thermal coal used in power stations. The Mining Resources Rent Tax (MRRT), which still needs to pass the Senate in early 2012 before being implemented mid next year, will impose a 30 per cent tax on profits of all new and existing iron ore and coal projects. The tax is aimed at tapping into the country's mining boom and redistributing the profits to other sectors like manufacturing and tourism, which are lagging in growth. The government expects the tax, which still has to pass through the Senate next year, to raise $11.1bn in the first three years, although some analysts and companies question whether tax receipts will meet expectations. The controversial law, which brought down the Rudd government last year, has been slammed by critics who argued that the tax will hurt Australia's appeal to foreign investors and undermine the sector, especially the smaller and more vulnerable mining firms.

Former prime minister Kevin Rudd had first proposed a 40 per cent tax on mining companies' "super" profits last year in an effort to even out the growth in Australia's economy, where resource companies are prospering even as manufacturers and tourism operators struggle. Demand from China and India for these raw materials has raised wages and brought jobs to remote areas such as Western Australia's dusty Pilbara region, but also has pushed up the cost of the living elsewhere in the country. That has prompted fears Australia has developed a two-speed economy, with non-mining industries weakened and manufacturing jobs moved to cheaper locations offshore. The MRRT will apply to all companies earning more than 75 million Australian dollars (US$73.7 million) in annual profit from coal or iron-ore production. It will be levied at an effective rate of 22.5% on all profits earned more than 7% above the long-term government bond rate meaning that it would only be paid on earnings above a 12% profit margin.

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A Promising technological development from a small Silicon Valley company could increase global lithium production and International Mineral Mining Development Holdings believes that Simbol Materials could hold the key to economically viable lithium production.

Perth, Western Australia -- (SBWIRE) -- 11/24/2011 -- Simbol Materials of the silicon valley has developed technology that they believe could revolutionize the lithium production industry. Though their system is still largely unproven, experts speculate that if their trials are successful they will be able to efficiently extract lithium from geothermal power generation facilities around the world enabling production to surpass 420,000 tons by 2020, outstripping demand.

The vast majority of the world's lithium is produced in Chili and Australia, and though reserves are abundant in other areas, climate and geography make extraction difficult in much of the world. The most common method of extracting lithium is pumping brine into pools where it is left to evaporate in the sun for 18-24 months. Concentrated lithium chloride is left behind which can be extracted and processed into lithium carbonate used in industry. Simbol Materials has allegedly perfected a process where spent hot brine used to power geothermal power stations is pumped through filters removing the lithium chloride in hours rather than years before the water is returned to the earth.

With geothermal power generation gaining traction around the world, retrofits with this technology could potentially supply a large portion of the world's demand for lithium. Preliminary testing is promising and it is expected that the company will be able to refine lithium carbonate at costs competitive to the lowest cost Chilean producers.

As the demand for lithium continues to increase to support the portable electronics and automotive industries it is important that lithium production keeps up. This technology appears to be an excellent supplement to existing production methods and will likely enable global competition in the lithium supply chain ultimately lowering costs.

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Rare earth stocks have struggled in recent weeks on disappointing earnings reports in the industry. Big companies including MolyCorp are formulating plans to increase production and bounce back from losses.

Johannesburg, South Africa -- (SBWIRE) -- 11/23/2011 -- After nearly three years of soaring prices for rare earth metals, with the cost of some rising nearly thirtyfold, the market is rapidly coming back down. Rare Earth stocks have struggled in recent weeks as disappointing earnings reports from some of the industry's up and coming stars cooled optimism in the sector. Additionally, a dramatic downturn in demand for the metals has caused prices to slide.

International prices for some light rare earths, like cerium and lanthanum, used in the polishing of flat-screen televisions and the refining of oil, respectively, have fallen as much as two-thirds since August and are still dropping. Prices have declined by roughly one-third since then for highly magnetic rare earths, like neodymium, needed for products like smartphones, computers and large wind turbines. Prices of rare-earth minerals have dropped 27 percent from their peak this year as Chinese exports increased, boosting inventories, according to analysis from Bloomberg Industries. China mines 94 percent of the rare earth metals in the world. Through 2008, it supplied almost all of the global annual demand outside of China (50,000 to 55,000 tons). China cut its export quotas to a little more than 30,000 last year and again this year and imposed steep export taxes, prompting prices and shares of rare-earth mining companies to rise. As demand for rare earths wilt outside China, speculators are dumping inventories, feeding the downward plunge. Cerium peaked at $170 a kilogram, or $77 a pound, in August but now sells for $45 to $60 a kilogram. Prices are negotiated by buyers and sellers directly with one another and reported by market information companies like Asian Metal, based in Pittsburgh. That is still far above cerium's price of $6 a pound three years ago, before China, the world's dominant producer, sharply cut its export quotas.

Big companies in the United States, Europe and Japan that use rare earths in their manufacturing have been moving operations to China, drawing down inventories, switching to alternative materials or even curtailing production to avoid paying the extremely high prices that prevailed outside China over the summer. Molycorp (MCP), the largest rare earth stock, was hit hard on Friday after reporting its earnings after the close the prior day. Even though the net income was $48.4 million, up sharply from the net loss of $10.1 million in the same quarter last year, earnings per share missed analyst estimates by three cents. Molycorp also reported that its new Project Phoenix is ahead of schedule, and by the end of 2012, the company should be significantly increasing their production of rare earth oxides. Some fundamental analysts who follow this sector are concerned that this will make the rare earth metals less rare, and therefore, will push down prices.

Molycorp Inc., owner of the largest rare-earth mine outside China, said new developers may face difficulty funding new operations as prices plunge. Mining companies including Molycorp and Lynas Corp. are spending at least $6 billion developing mines to meet demand for the elements used in applications ranging from electric cars to missiles.

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