Legal battles hard on miners

TORONTO STOCK EXCHANGE

U.S. stock markets fell slightly over the May 31-June 6 period. The S&P 500 index was down 1.3 points to close at 1,197.78 points and the Dow Jones Industrial Average closed 75.5 points lower at 10,467.03.

Newmont Mining led the volume traders and the stock climbed US2 to close at US$37.61. The company has been given one month by an Indonesian court to reach an out-of-court settlement with the government over a multi-million-dollar lawsuit alleging the company polluted Buyat Bay, Sulawesi Island. Newmont processed ore at the site up until the end of August of last year.

Labour relations may be the cause of a US13 fall in Alcoa‘s share price. It closed at US$27.33. An arbitrator has been called in to negotiate a deal between Alcoa and the United Steelworkers of America. The current contract, which expires in May of next year, affects 9,000 workers at 15 U.S.-based Aluminum plants. The two sides are disputing economic terms, not specified in the contract.

Shares in Phelps Dodge garnered investors’ favour, rising US$3.93 to close at US$91.14. The company reported that it will begin construction of a US$210-million copper plant in Morenci, Ariz. It has reduced its stake in the Cerro Verde copper mine in Peru to 53.6% and the company plans to pay a quarterly dividend of US37.5 per share on Sept. 2 to shareholders of record on Aug. 12.

At Gold Fields’ invitation, 20% shareholder Norilsk Nickel will be nominating two non-executive directors to the Gold Fields board. Gold Fields fell US39 to close at US$10.60.

Over-the-counter trader Golden Phoenix Mines soared 31%, to US24.5, following a report that it had posted mine and mill reclamation bonds for its Ashdown molybdenum project in Nevada.