News Wrap

IN THIS morning’s News Wrap: Rio gives land in push for mine; miners making hay as gold shines on price rises; and JPMorgan deal propels Mercuria to elite commodity club.

Lou Caruana

Rio gives land in push for mine

Rio Tinto has taken the unprecedented step of donating more than 1800ha of land toward a national park in a bid to win approval for a mine expansion the courts stopped last year, according to The Australian.

The global miner says it does not have time to wait for the outcome of an appeal against the Land and Environment Court’s decision to overturn government approval of an extension to its Mount Thorley Warkworth mine in NSW.

It is instead submitting a new application to extend the mine’s life until 2035.

Miners making hay as gold shines on price rises

Gold miners are rapidly making use of the funding window that has opened up thanks to the recent rise in the gold price, according to the Sydney Morning Herald.

Indochine Mining is the latest, seeking $20 million at a hefty premium to its share price. It launched the raising late last week and by yesterday, had $15 million. It expects to raise the rest in the next few days.

The raising comes as Kingsgate Consolidated seeks $60 million at a discount of 30% to its share price. Doray Minerals raised $17 million last month, Silver Lake $40 million, Perseus $30 million and Saracen $60 million.

Paving the way for the raisings has been the revival of the gold price - from $US1200 an ounce at the start of the year to about $US1350.

JPMorgan deal propels Mercuria to elite commodity club

Mercuria's purchase of JPMorgan's physical commodities business marks the culmination of a 10-year journey that catapults it into an elite group, alongside Glencore Xstrata, Vitol and Trafigura, according to the Australian Financial Review.