BRIEFING - ASIA MINING - OCT 22, 2009

Oct 22, 2009 (AsiaPulse via COMTEX) -- ERMAF | Quote | Chart | News | PowerRating -- An executive briefing on mining for Oct 22, 2009, prepared by Asia Pulse (http://www.asiapulse.com), the real-time, Asia-based wire with exclusive news, commercial intelligence and business opportunities.

ERAMET, MITSUBISHI TO DEVELOP US$4.6 BLN NICKEL MINE IN MALUKU

JAKARTA - France's Eramet, Japan's Mitsubishi and Indonesia's PT Aneka Tambang (Antam) (JSX:ANTM) will build a US$4.6 billion nickel project in North Maluku, a report said.

Eramet, which owns 60 per cent stake in the project will be the operator of the world's largest ferronickel plant with Mitsubishi and Antam holding 30 per cent and 10 per cent respectively, Antam President Alwyin Syah Lubis said.

CHINA POWER COAL PRICE EDGING UP ON LOW STOCKS

BEIJING - The power-coal price at Qinhuangdao Port is expected to keep rising moderately in the fourth quarter of 2009 on decreasing coal inventory, recovering power demand and the resumed suspension of production of small coalmines in Shanxi province.

Coal inventories at Qinhuangdao Port, the largest coal distribution center in China, have been declining for two months, fluctuating at about 4 million tons recently. They grew to 4.2597 million tons on Oct. 20, but this is still lower than the standard level of 5 million tons.

AUSSIES INVITE FDI, BUT CONCERNS LINGER AMONG CHINESE MINERS

TIANJIN - Australian state government and industry officials Wednesday extended invitation to Chinese investment in the mining sector, but their remarks didn't help dispel concerns of Chinese mining companies.

The officials from Australian states, including the New South Wales, South Australia, Western Australia and Queensland, and some industry associations, attended the three-day 2009 China Mining Conference with hopes of boosting investment sentiment from China following a spate of failed mining asset purchases.

CHINA MINMETALS TO BEGIN PRODUCTION AT COPPER MINE IN PERU BY 2012

BEIJING - China Minmetals Corp., a major state-owned metals and mineral trader, expects to begin construction of the Galeno copper mine in Peru next year and production by 2012, China Daily reported Thursday.

The Galeno copper mine, purchased jointly by China Minmetals and Jiangxi Copper Co. early last year, is believed to have 20 years of mine life and an annual production estimate of 144,000 tonnes concentrate.

CHINA TO INNOVATE IN PROSPECTING, MINING TECHNOLOGIES: OFFICIAL

BEIJING - Over 90 per cent of the energy and 89 per cent of the industrial fuel in China come from mineral resources, Liu Yanhua, vice-minister of China Ministry of Science and Technology, said at the ongoing China Mining Conference.

"Although China owns relatively rich resources, the volume per capita is quite small," Liu added.

CANADIAN COMPANY GETS NOD FOR W. AUSTRALIAN URANIUM MINE

PERTH - Western Australia's first uranium mine is one step closer to reality after a mining lease was granted to a Canadian venture in the state's eastern goldfields region.

Mega Uranium, a Canadian company, announced on Wednesday the WA Department of Mines and Petroleum had granted a mining lease for its Lake Maitland project, near Wiluna.

AUSTRALIAN CO AMCOR SEES COMPLETION OF ALCAN DEAL AROUND JANUARY

MELBOURNE - Australian company Amcor Ltd (ASX:AMC) managing director Ken MacKenzie says the group's $A2.44 billion (US$2.27 billion) acquisition of Rio Tinto's packaging unit, Alcan Packaging, is expected to be completed by January 1, plus or minus 30 days.

The deal, which was announced in August, will result in Amcor's gearing moving to 43.4 per cent, he said while speaking after the company's annual general meeting on Thursday.

INDONESIA'S ANEKA TAMBANG SET TO OVERSHOOT GOLD SALES TARGET

JAKARTA - Publicly traded Indonesian mining company PT Aneka Tambang (ANTAM) (JSX:ANTM) said it is set to overshoot its gold sales target of 9 tons this year.

Gold sales this year are expected to reach 11 tons, based on performance up to the third quarter of this year, Alwin Syah Loebis, the president of the state company, said.

BHP CHAIRMAN SAYS INVESTMENT OPPORTUNITIES NEEDED FOR AUSSIES

MELBOURNE - BHP Billiton Ltd (ASX:BHP) chairman Don Argus says Australia needs policies to ensure foreigners do not squeeze out locals to invest in the country's natural resources.

Mr Argus said Australia must make certain the right "economic rent" is charged for access to mining assets.

MAJOR SHAREHOLDERS SHUN S.KOREAN CO GM DAEWOO'S RIGHTS OFFER

SEOUL - Major shareholders of struggling South Korean GM Daewoo Auto & Technology Co. failed Wednesday to subscribe to the company's new share issue, overshadowing its efforts to ride out a cash crunch, sources said.

General Motors Corp., the Korea Development Bank (KDB) and other big shareholders were invited to participate in the 491.1 billion won (US$417 million) rights offering by late Wednesday, which was designed to secure working capital for the cash-strapped carmaker.

AUST'S NEWCREST GOLD OUTPUT FALLS 5PCT IN Q1, MAINTAINS GUIDANCE

SYDNEY - Australian miner Newcrest Mining Ltd (ASX:NCM) has reported a five per cent fall in first quarter gold production due to lower grade output at one mine and slower commissioning at another.

Gold production of 377,084 ounces in the three months ended September 30 was down from 397,826 ounces at the end of June, and down 22.4 per cent from 485,978 ounces a year ago.

IVANHOE AUSTRALIA REPORTS ANOTHER HIGH-GRADE METALS DISCOVERY

PERTH - Ivanhoe Australia Ltd (ASX:IVA) has reported another high-grade molybdenum and rhenium discovery in Queensland's Cloncurry region, which could provide the company with early cashflow if found suitable for development.

The mineralised system has been named Little Wizard and lies above Ivanhoe Australia's Merlin discovery, which was discovered in April amid claims it represented the world's highest-grade molybdenum and rhenium deposit.

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