Nickel miner Allegiance Mining has issued a no-action letter to shareholders, following the release yesterday of a bidder’s statement from Zinifex Ltd.

Allegiance CEO Tony Howland-Rose reiterated his company’s position and again advised shareholders to take no action and not to make any decisions relating to their shareholding until the Allegiance Mining board has fully evaluated the offer.

The No Action letter reminded Allegiance shareholders that 90 per cent of drilling at the company’s Avebury Nickel Project has been restricted to one square kilometre, out of a total nickel province of approximately 100 square kilometres.

Attempts to contact Mr Howland-Rose were unsuccessful as the Allegiance Board met in Sydney to examine the Zinifex bidder’s statement.

Still in Tasmania, Beaconsfield Gold today announced the recommissioning of full mining activities at the now infamous Beaconsfield Mine, the site which drew international attention following its collapse on Anzac Day 2006.

Beaconsfield Gold CEO Bill Colvin welcomed the return to full production, adding that the recommissioning had been done in consultation with both the Australian Workers Union and the Beaconsfield workforce.

In metals news, base metals prices have continued to decline amid growing concerns about the falling demand and the slowing of the world economy.

Demand for copper has remained subdued in light of talk that the US Federal Reserve will refrain from further interest rate cuts, which, had they been forthcoming, may have stimulated the US economy.

In London LME copper fell to a nine month low of $US6357 overnight. Lead was down $50 to $2430 a tonne, zinc down $28 dollars to $2297 a tonne, aluminium down $5 dollars to $2410 a tonne, nickel dropped $800 to $25,700 a tonne and tin fell $150 to $16,050 a tonne.