Frik Els , Editor

Xinhua News reports the mining operations of China National Coal in Shaanxi Province, the country's coal heartland, were ordered suspended after eight miners were confirmed dead in a colliery flooding on Saturday. Officials said the flooding exposed "serious problems" in the implementation of safety measures and the company would only resume operations after an overhaul. State-owned ChinaCoal is the country's second largest coal producer at 154 million tonnes/year. Due to a paucity of gas and oil China relies on coal for 70% of its energy needs and government analysts expect annual coal demand to reach at least 4 billion metric tons by 2020 even after taking into account unprecedented levels of investment in nuclear, wind, solar, and hydro. Official statistics show the death rate per million metric tons of coal produced stood at 2.63 in 2010.

Speaking in Arequipa at Peru's premier mining conference industry executives said on Friday a drive by Peru's leftist president to raise mining royalties should not derail multibillion-dollar investments, but added that the viability of smaller, less efficient operations will be affected. Peru's Buenaventura and US-based Newmont said their $4.8 billion Conga mine, the most expensive mine in Peru's history, was on track to come on line in 2014 while others including Barrick Gold, Xstrata, Anglo American and Gold Fields reiterated their commitment to the country.

Gold futures returned to above $1,800 an ounce Friday as investors sought the perceived safety of the precious metal ahead of the weekend and news emanating from Europe injected a dose of uncertainty back into markets. Gold for December delivery added $33, or just under 2%, to settle at $1,815 an ounce in afternoon trade. Reuters reports between gold’s highs and lows this year, there is a more than $600 gap, the largest since the 1960s, though its 32% range is below the 42% range seen in 1980.

Kentucky power companies Louisville Gas and Electric and Kentucky Utilities said on Friday new, stricter, federal environmental regulations will force them to retire three older, coal-fired power plants and recoup the $4 billion in EPA compliance costs through future price hikes for customers. A recent industry-sponsored study showed the US coal ash industry could suffer $110bn in lost economic activity and cut 300,000 jobs over the next 20 years under the new rules and between 50,000Mw and 70,000Mw of coal-fired power generation throughout US could be retired. The three Kentucky plants being shut down supplied less than 800Mw of power. One megawatt powers about 1,000 homes.

In a study released Thursday by Calgary University's School of Public Policy, Professor Ken McKenzie using economic data found incremental revenue for the government of Alberta over the last two years under the controversial New Royalty Framework in excess of $1 billion. McKenzie said it was done without generating the political outcry that accompanied much of the changes to conventional oil and gas as a part of the royalty review process.

Encouraged by test work that revealed extraction potential using its own technology at one of the world’s largest known glauconite deposits, Perth-based Potash West on Wednesday expanded it exploration tenure by almost 40% to 2,905km² in Australia's wheatbelt. The company raised $6 million on the Sydney bourse in May this year hoping to become the first Australian firm to break into the lucrative potash market dominated by about 10 mainly Canadian companies. Global potash prices currently average $500 a tonne, up more than 40% from 2008-recession lows.

Zimbabwe's mines minister on Thursday told delegates at a conference in the capital Harare that the government has received 400 applications from companies interested in mining diamonds, despite an international ban on the export of gems from the rich Chiadzwa alluvial fields. The news comes as Zimbabwe appears to scale back its ambition to force foreign miners to hand over majority ownership with the minister saying the country would not suspend any mining permits and that exceptions may be made to the so-called indigenization laws.

TSX-V junior Prophecy Coal was trading up 6% by early afternoon on Thursday after jumping 11% earlier in the day on news that the Mongolian government has given the go-ahead for a power plant at the mouth of its Chandgana mine. Prophecy – which also controls a Yukon platinum explorer – has more than 1.4 billion tonnes of surface minable thermal coal resources at Chandgana and its producing mine Ulaan Ovoo for which it recently signed offtake agreements in Russia. There is renewed interest in Mongolian coal assets and earlier this week an Australia-based firm exploring in the fast-growing country was sold for a 800% profit a mere 18 months after its IPO.

Firestone Diamonds said Wednesday rough diamond prices have fallen about 15% to 20% since the start of August as market uncertainty begin to take a heavier toll. This after prices rose roughly 40% in the first half on the back of robust demand from China and India. The company announced it had sold only 14% of the rough diamonds offered at the tender – the London-listed firm's fourth of the year – held in Gaborone, Botswana that concluded on September 9. Most of the unsold goods were smaller in size. Shares in the company dropped over 7% by the close of trade in London.

Catholic Online delves into California's fabled gold country that calls to mind bearded prospectors with loaded-down pack mules but is now a bustling tourist community. Today people visit towns such as Sutter Creek, Amador City and Angels Camp to taste wine or to find treasure in the local antique store rather than to pan for gold. This may soon change, as a fully operating underground gold mine is set to open.