Putting its unsuccessful bid for Ashanti Goldfields behind it, South African-based Randgold Resources says it is close to making a development decision on its promising high-grade Loulo gold prospect in Mali. But first it needs to engage in further discussions with the government regarding fiscal and infrastructure issues. Randgold also reported a net profit of US$13.7 million for the September quarter, powered by production at its Morila joint venture in Mali, which slipped to just under 200,000 oz. gold for the quarter, partly owing to heavy rains that rendered higher-grade areas of the pit inaccessible. Randgold tumbled $1.80 on the week to US$26.17.
Alcoa was the most active mining stock in the U.S., rising 9 to US$32.34. The company announced it will consolidate all its automotive businesses into a new, 86,000-sq-ft. plant in Farmington Hills, Mich., in a bid to develop more products. More than 300 workers from Southfield, Livonia, and Allen Park, Mich., will move in the spring.
Australia’s WMC Resources slipped a nickel to US$16.60 as the company’s troubled Olympic Dam copper smelter suffered another mechanical failure, one which might halt production for three weeks and cost the company up to A$34.5 million. The failure of a heat exchanger at the operation’s sulfuric acid plant is only the latest in a series of incidents. Each day of lost production represents 600 tonnes copper and 12 tonnes of uranium oxide, or A$1.5 million in bottom-line earnings. However, an ongoing re-build, due for completion early next year, should boost Olympic Dam’s annual capacity to 235,000 tonnes copper and 4,500 tonnes uranium oxide.
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