Japan indium demand may pick up: A silver lining has appeared for the Japanese indium market, which has been battered by slumping computer sales and high inventories, traders said last week. In one bright sign, Toshiba Corp announced last week that a plan to boost its output of liquid crystal displays, forecasting a pickup in demand and dwindling low-priced supply from South Korea. Traders are also pinning hopes on a Japanese government package to boost Japan's ailingeconomy, which is to include tax cuts that may boost demand for products using LCDs. "A better environment has been created, though we have not yet seen purchases of indium (in the spot market)," said a trader at a European house. "Demand will grow in the second half (of 1998)." Some traders said Japanese demand for indium, which is mostly used for LCDs, might climb to as much as 150 tonnes this year after 120-130 tonnes last year, despite falls over the past few months.

Alumina plant in Gujarat: An alumina plant at an estimated cost of Rs 2500 crore would be set up in the mineral rich areas in Kutch district, according to Gujarat minister of water resources and minerals, Narottambhai Patel. He made this announcement after a meeting of high level officials attached to water resources, minerals, research and production departments at Gandhidham recently. The minister said a team of high officials would visit the USA for a detailed study and prepare a draft a plan for the proposed project and addedthat the latter, on completion, would provide employment to over 12,000 persons. The government was also committed and firm on removing all hurdles disrupting industrial progress of the mineral rich areas by establishing mineral based industries to eradicate industrial imbalance, he said. The minister also said that abundant lignite had been detected and research had indicated reserves at around 260 lakh tonnes. He emphasised on commissioning lignite based thermal power stations to ease the energy crisis and generate employment opportunities.

Russia palladium supplies down: Russia provided nearly 60 per cent of world palladium supplies last year according to estimates by leading refiner Johnson Matthey, but has failed to ship any of the white precious metal this year. Despite Moscow's reassurances since January about imminent supplies, palladium prices have jumped from below $200 since the start of 1998 as fears have grown of a re-run of last year's six-month, Russian supply freeze. Manufacturers ofelectronics components are the most exposed to soaring palladium prices, more so than the car catalyst manufacturers and dentists who are the metal's other major users, because it makes up a significant part of their unit costs. News last week that Russia's acting prime minister Sergei Kiriyenko had signed a government order setting out 1998 export quotas for palladium helped calm the spot price, which was last at $313.00/$318.00.

Nippon Mining hikes copper price: Nippon Mining and Metals Co Ltd last week raised its selling price for copper by 10,000 yen to 280,000 yen per tonne, effective immediately. Major Japanese smelters periodically review their selling prices, changing them in line with market prices and currency rates.

ConsRutile mine move to cost A$36 m: Consolidated Rutile Ltd said last week that it expects the relocation of its mining operation at Gordon to the Yarraman deposit on North Stradbroke Island to cost about A$36 million and take up to 33 weeks to complete. ConsolidatedRutile, which is controlled by RGC Ltd said that the Yarraman mine in the Australian state of Queensland will have a 14 year operational life and the relocation will take place in the first half of 1999. It said it has appointed the Commonwealth Bank of Australia to advise and arrange funding requirements for the relocation of the mine.Japanese deformed steel output: Japanese manufacturers of deformed steel bars will continue to hold output at low levels as they face a prolonged market slump reflecting depressed demand from the construction sector, the Nikkei Industrial Daily reported last week. Planned on-year cuts are 20 per cent or more at Nakayama Steel Products Co and 30 per cent at Kishiwada Steel Co. Similar reductions are projected at Tokyo Steel Manufacturing Co and Godo Steel Ltd as well.The prices of benchmark 19-mm bars for delivery to large-lot users currently centre on Y29,000 per ton in Osaka, a 10-year low and down 9 per cent from the beginning of this year. A comparable decline of morethan 10 per cent has occurred in the Tokyo market, the newspaper said.

Silver & Baryte's gold discovery: Silver & Baryte Ores Mining Co has made a 'promising' gold discovery in northern Greece. The gold producer said that its LaSource SAS unit has completed 5,265 meters of drilling at Perama Hill on a widely spaced grid defining a zone of continuous gold mineralisation over an area of 700 meters by between 100 meters and 300 meters. The discovery lies on properties owned by a partnership between Normandy LaSource, Silver & Baryte and Inmet Mining Corp. Infill drilling is continuing to establish a resource estimate by mid-1998, the statement said. Silver & Baryte Ores is the largest mining and minerals processing group in Greece with a high export orientation.

Japan's lead demand down: A Tokyo-based trader says that Japan's poor lead demand is reflected in low duty-free imports under Japan's Generalised System of Preferences. Japan's lead imports under the GSP scheme for the financial yearApril-March 1998-99 registered at 10,000 tonnes, compared to 80,000 tonnes three years ago. The trader added that the sluggish lead market was a result of the slow automobile sector in Japan. Chinese brand lead premiums to Japan are tagged at $40-$50 a tonne premium to LME cash, CIF, while North and South American lead are tagged at $70-$80 premium to LME cash, in-warehouse. In Singapore, Chinese brand lead warrants are tagged at $40/tonne premium, in-warehouse. Chinese brand zinc - Huludao and Torch brands - is available at $30 a tonne premium, CIF main Japanese ports, while North and South American material is going at $70-$80 a tonne premium, CIF. Zinc warrants in Singapore are indicated in a wide range between $5-$20 a tonne premium, in-warehouse.

GM to broaden steel suppliers: General Motors Corp is seeking to broaden its purchasing to make it easier for steelmakers world-wide to supply its operations. The auto maker spends $5 billion to buy more than six million metric tons of steel a year,the lion's share of it in North America. In the past, it has sourced its steel needs around the world on a regional basis -- with European steelmakers supplying European auto factories, for example. But in the past month, GM has invited more than 40 steelmakers from around the world to attend presentations on the company's new global bidding process. Instead of taking steel on a regional basis, the company will seek bids from steelmakers to supply steel at operations around the world. GM said meetings with the steelmakers are continuing and it hopes to make its global purchasing decisions by this summer, said John Stiles, executive director.

BHP coal output rises 10 per cent: The Broken Hill Pty Co Ltd said last week that its coal production in Queensland rose to 21 million tonnes in the 10 months to March, up 10 percent from the same period a year earlier. It said Queensland coal output for the month totalled 2.3 million tonnes, up 17 per cent, from 1.97 million a year ago.

(Reuters and DowJones)