Mining Roundup

GCM Resources (LON:GCM) posts a pre-tax loss of £1,043,000 for the year to the end of June compared with £937,000 in 2015.

Executive chairman Datuk Michael Tang said: "Although the mining sector has continued to face significant challenges over the last twelve months, we remain positive on the potential of the Phulbari Coal and Power Project and are advancing the Company towards realising its objectives.

"The Government of Bangladesh (the Government) continues to execute its strategy of substantially increasing the country's power supply, and has made progress during the year towards meeting its objective of generating over 19,000MW from coal by 2030. The expansion of coal fired power plants is expected to result in a significant increase in demand for high quality thermal coal within the country. GCM is well placed to meet this need.

"Once developed, the Project can supply sufficient high quality thermal coal to support over 4,000MW of power generation for Bangladesh, making a substantial contribution towards the Government's goals. It is also expected to transform the Rangpur Division in north-west Bangladesh, from one of the poorest areas in the country into an economic centre with industries based on the new power supply, the mine and co-industries.

"An estimated 17,000 jobs are expected to be created due to mine development and this figure increases to approximately 50,000 when taking into account the power generation and downstream industries enabled through using the Phulbari's coal and industrial mineral co-products. The Government would also benefit financially, deriving over US$7 billion revenue in the form of royalties, taxes and service charges from a producing Phulbari coal mine over its economic life and the Project would contribute an estimated 1% to GDP.

"While pursuing approval from the Government of Bangladesh to proceed with development, we are negotiating with potential partners to expedite the Project. GCM has agreed a memorandum of understanding with China Gezhouba Group International Engineering Co. Ltd (CGGCINTL) to mutually investigate the feasibility of a joint venture with respect to the development of mine-mouth coal fired power plants generating up to 2,000MW in total at the Phulbari Coal and Power Project site. CGGCINTL has a wealth of experience in major infrastructure projects including developing coal-fired power plants and we are very pleased to partner with them in investigating this opportunity.

"Project implementation will mean substantial investment into the locality and we are committed to ensuring that the Project is developed for the benefit of all stakeholders. During the year the Company continued to engage with the local community, maintaining its relationships and listening to their views.

"The Group incurred a loss of £1,043,000 for the year ended 30 June 2016 which included £340,000 of non-cash expenditure, compared to a loss of £937,000 in the previous financial year. Capitalised Project related expenditure amounted to £655,000 for the year, compared to £579,000 for the comparative year."

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Rio Tinto (LON:RIO) today terminated the contracts of Energy & Minerals chief executive Alan Davies and Legal & Regulatory Affairs Group executive Debra Valentine.

The Rio Tinto board reviewed the findings to date of an internal investigation into 2011 contractual arrangements with a consultant who provided advisory services on the Simandou project in Guinea.

"The board's decision does not pre-judge the course of any external inquiries into this matter," the company said.

"However, the board concluded that the executives failed to maintain the standards expected of them under our global code of conduct, The way we work.

"In the circumstances, the board terminated the contracts of both executives.

"In accordance with contract termination, neither executive will be eligible for any short-term incentive plan awards for 2016. Rio Tinto will also cancel all unvested incentive plan awards from previous years.

"As previously announced, Rio Tinto contacted the regulatory authorities in the United Kingdom, Australia and the United States about the matter and intends to fully cooperate with any subsequent inquiries. Further comment at this time is therefore not appropriate.

"Alan Davies will be replaced by Bold Baatar, who will join the Executive Committee as Energy & Minerals chief executive.

"Bold held a number of senior investment banking roles with JP Morgan before taking on chief executive positions with a gold mining company and a diversified investment management business in Mongolia.

"He joined Rio Tinto in 2013 as Copper International Operations president and is the managing director of Marine and vice president Iron Ore Sales and Marketing."

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Shanta Gold (LON:SHG) has received the advanced payment of $5.25m as part of its silver streaming agreement (SSA), as announced 6 May 2016.

As previously stated the Company will also receive an ongoing payment of 10% of the value of silver sold at the prevailing silver price at the time of deliveries.

By way of reminder, the SSA relates solely to silver by-product production from the New Luika Gold Mine with minimum silver delivery obligations totalling 608,970 oz Ag over a 6.75 year period.

The Company produced 121,682 ounces of silver in 2015 resulting in approximately 2 per cent. of annual revenue.

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Karelian Diamond Resources (LON:KDR) reports a loss after taxation for the year ended 31 May of €268,334 (2015: €121,551) and had net assets of €8,461,373 (2015: €8,330,073).

On 17 May, the Company raised £250,000 through the issue of 31,250,000 shares at 0.8p each.

Chairman Professor Richard Conroy said: "I am delighted that the Company has made such excellent progress during the year both by the acquisition of the Lahtojoki diamond deposit which could become the first diamond mine in Europe (outside Russia) and by the exploration results. The diamond potential in the Lahtojoki area has been enhanced, post the acquisition, and mineral analysis of the Riihivaara indicator minerals increases the likelihood that the Riihivaara kimberlite body is likely to be diamondiferous."

At 4:07pm:

(LON:BEM) Beowulf Mining PLC share price was 0p at 5.25p

(LON:BKY) Berkeley Energia Ltd share price was 0p at 44.75p

(LON:CEY) Centamin PLC share price was +3.35p at 140.15p

(LON:CHL) Churchill Mining PLC share price was -0.25p at 36.75p

(LON:CZA) Coal of Africa Ltd share price was +0.01p at 3.38p

(LON:FDI) Firestone Diamonds PLC share price was +0.5p at 56.5p

(LON:FRES) Fresnillo PLC share price was +9.5p at 1387.5p

(LON:GCM) GCM Resources PLC share price was +7.75p at 41.75p

(LON:GEMD) Gem Diamonds Ltd share price was -1.25p at 114.5p

(LON:HOC) Hochschild Mining PLC share price was +5.6p at 234.3p

(LON:KDR) Karelian Diamond Resources PLC share price was -0.05p at 0.5p

(LON:KMR) Kenmare Resources PLC share price was +1.25p at 246.5p

(LON:RIO) Rio Tinto PLC share price was +48.5p at 3012p

(LON:SHG) Shanta Gold Ltd share price was -0.38p at 10.63p

(LON:VED) Vedanta Resources PLC share price was +11.25p at 812.75p