Galway Resources Ltd. (GWY: TSX-V) is pleased to announce today that it has entered into an option agreement with Rio Tinto Mining and Exploration Corporation (Rio Tinto) to acquire 100% interest in nine coal concessions totaling 7,500 hectares, roughly 50% of the previously drilled San Louis Coal basin located in Santander, Colombia. The project will be known as Carboluis.

“We are pleased to announce the first project resulting from our Colombian strategy of targeting coal properties that have the potential for quick resource development and production potential for a medium sized mine,” said Rob Hinchcliffe.” Of the 29 previous drill holes in the overall San Louis Basin, the best holes were on the property we optioned, which enabled us to develop a seven hole program targeting an open-pittable resource of 20 to 30 million tons of high grade coal, that will be executed right away.”
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At least 23 miners were killed and another six unaccounted for after an explosion at a coal mine in northwest China, the Xinhua news agency said on Friday.

The accident occurred at the Yaotou mine, in China’s Shaanxi Province, on Wednesday. Some 36 workers were at the mine at the time of the gas explosion, and only seven have managed to escape, the agency said citing a spokesman for the provincial government.

The Yaotou mine is state-owned and run by the local government.

China’s mining industry is considered one of the world’s most dangerous with accidents killing up to 7,000 workers annually. A major gas blast at Liaoning’s Sunjiawan mine in February 2005 killed more than 200 miners, making it the worst mining tragedy in China for at least 15 years.

Source: RIA Novosti

Leading coal miner Coal India Ltd (CIL) has received bids from 17 companies – both national and international – for extracting coal from 18 abandoned underground mines belonging to three of its subsidiaries.

“We have received bids from 17 companies, eight of which are from overseas,” a source close to the development told media.

The bidders are Xindia Steels, Walter Southeast Asia, Afcon Infrastructure, Essel Mining and Industries, Sunflag Iron and Steel, Anglo American Services India, Indo-Australia Mining, Reliance Infrastructure, Zhengzhou Coal Mining Machineries, Essar Mineral Resources, Electrosteel Castings, Sainik Mining and Allied Services, Tiandi Science and Technology, Future Metals, European Ventures, Rio Tinto India and Bucyrus DBT Europe GmbH.

“The proposals are now being evaluated by the Central Mine Planning and Design Institute (CMPDI),” the official said. Read more

Companies engaged in mining, exploration and refining activities can now borrow up to $500 million a year from abroad for spending in India, 10 times more than the $50 million allowed till now. The finance ministry on Tuesday relaxed the external commercial borrowing (ECB) policy to allow entities in these sectors to borrow more from abroad by defining them as infrastructure companies. The move would benefit companies such as ONGC, RIL, Coal India, Essar Steel, Cairn India and Sesa Goa.

However, they have to take RBI’s permission before bringing overseas borrowings to Indian soil. Senior executives in oil major ONGC welcomed the move, saying it would help them raise long-term funds to support their deep-water drilling operations. The amendment will come into force the day RBI notifies the change under the Foreign Exchange Management Act, the ministry said in a statement.
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The CEO of the NT Resources Council, Scott Perkins, says the Bureau of Statistics figures for 2007-2008 are amazing, but not sustainable into the future.

He says the increase equates to $132 million.

“Really what your saying with this sort of activity is that it’s now possible with the prices that we’ve seen, to start to create wealth for all Australians with sustainable mining activities.

“The transformation into mining is sometimes quite difficult and a very expensive exercise”.

The CEO says the high demand for commodities in China in one of the reasons for the increase in activity.
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Mining activity in Zambia continues vigorously as mining companies seek out new orebodies, with special focus on exploration, in spite of the recent fluctuations in the prices of commodities such as copper and nickel, states engineering technology group Sandvik Mining & Construction Zambia MD John Oberg.

This bodes well for the Zambian economy, and mining industry stakeholders, such as Sandvik Mining & Construction, which has invested in the establishment of supply and service facilities to the Zambian mining industry, reports the company.

“Exploration is going to be the biggest driver for our business over the short term, given that this is a relatively new activity for Sandvik in Zambia,” says Oberg.
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MONTEVIDEO, Uruguay, — (BUSINESS WIRE) — Uruguay Mineral Exploration Inc., a South American gold production and exploration company, yesterday released two press releases regarding the year end results for fiscal year 2008 which contain typographical errors which the Company considers should be clarified.

In the Press Release titled Uruguay Mineral Exploration Announces Results for Fiscal Year 2008, the correct basic earnings per share of the Company is $US 0.16 instead of $US 0.22 as stated on page 2 and the amount invested in exploration should read $US 9.96 instead of $US 9.6 as stated on page 4.

Also, in the Press Release titled Chairman’s and CEO’s Reports from Annual Report and Accounts 2007/08 the net profit after tax for the financial year to May 31, 2008 is $US 7.8 million and not $US 78 million as stated on page 4. Additionally, the amount invested in exploration should read $US 9.96 instead of $US 9.6 as stated on page 4.
The original Annual Report, Financial Statements and MD&A filed with Sedar and released on the company’s website are correct. Read more