Production of important minerals in February were: coal, 293 lakh tonnes, petroleum (crude) 26 lakh tonnes, natural gas (utilised) 16000 lakh cum, Iron ore, 69 lakh tonnes, lignite, 19.6 lakh tonnes, manganese ore, 1.45 lakh tonnes, chromite, 1.22 lakh tonnes, bauxite, 6.01 lakh tonnes, copper ore, 3.8 lakh tonnes, gold, 164 kg, lead (concentrates), 5,681 tonnes, zinc (concentrates), 29,080 tonnes, limestone, 92 lakh tonnes, apatite and phosphorite, 93,000 tonnes, dolomite, 2.34 lakh tonnes and magnesite, 27,000 tonnes.

Japanese steel output seendown: The Japan Iron and Steel Federation said last week that it expected Japan's overall crude steel output from April to June to be about 22.7 million tonnes, the lowest level in 27 years. "We should continue to adjust steel production in the April to June period because of a slow reduction in inventories caused by poorer-than-expected demand," federation chairman Takashi Imai said.

Macmin's Papua Guinea gold hunt: Mining company Macmin NL said that it was expecting to report positive exploration results from gold prospects in Papua New Guinea. Macmin said the drill work was scheduled to start in 1998 at its Feni and Crater Mountain projects and that the company was also gearing up for exploration of a number of other sites in Papua New Guinea. Crater Mountain had the potential to host a "mutli-million ounce gold ore body", the company said.

Capral sees bitter competition in Asia: Aluminium smelting and fabrication group Capral Aluminium Ltd said that it expected competition from Asiain its domestic fabricated aluminium markets to intensify in coming months. "We would expect our businesses here to be under more severe competition as the year goes on," Capral chairman Jeremy Davis told reporters after the group's annual meeting. "We don't believe we've seen the full impact on the market place in Australia," he said. Capral's revenue from aluminium fabrication, including the production of rolled and extruded products, made up A$514 million of Capral's total revenue of A$743 million in 1997.

Iran hikes steel production: Steel factories affiliated to Iran's ministry of mines and metals produced 6.6 million tonnes of steel in the year ending March 20, up 6.75 per cent compared to the previous year. Iran produced 13.9 million tonnes of copper ore in the same period, showing a two per cent increase over the previous year, Salam daily newspaper quoted the ministry as saying. The state-owned National Copper Industry company produced some 16,000 kg (35,000 pounds) of cathode silver, up 12per cent compared to the previous year, it added.

Russia to simplify PGM export rules: Russia is planning to remove bureaucratic and other restrictions on exports of platinum group metals. Acting first deputy prime minister, Boris Nemtsov said, "We have decided to allow the export of gold without any bureaucratic restrictions." He said that similar decisions were taken for other precious metals, including palladium, platinum and platinum group metals as a whole." He did not name a time frame.

Copper prices decline: Restricted buying support against easy availability and tight money market resulted in a decline in the copper prices at the non-ferrous metal market. Prices of other metals also moved in a limited range on scattered buying support and held unchanged. Marketmen said easy availability of stocks against small buying activity mainly caused the down trend. The tight money market was another dampening factor, they said. Copper scrap fell from Rs 112 to Rs 106-108 per kilo on reducedofftake. Copper wire bar was down by rupee one at Rs 124.50 per kilo and copper rod at Rs 128.50 per kilo. Lepanto finds new copper-gold oreLepanto Consolidated Mining Co said last week that it found a new copper-gold deposit near its Victoria mine in Benguet province in northern Philippines. "This is a new discovery of a copper-gold deposit of a very high grade," chairman Felipe Yap told Reuters in an interview.

Broken Hill's copper mine: Broken Hill of Australia has lifted a force majeure declaration on copper deliveries from the Ok Tedi mine in Papau New Guinea. The Ok Tedi Mine continues to make progress toward normal operating levels and as a result, customers have been advised that the notice of force majeure has been lifted,' BHP said in an investor relations bulletin. ``Rainfall has been more consistent allowing for sufficient hydro-power to sustain mine and mill operations and shipment of concentrates down the Fly River on a more regular basis,' the company said. Production at Ok Tedistopped last August when a severe drought caused water levels to fall at the Fly River, preventing shipment of copper concentrate. Rain in February allowed the resumption of some production and shipments. BHP declared force majeure in September on Ok Tedi copper shipments.

Swedish steel firm sees good growth: Swedish steel maker Svenskt Staal AB (S.SVS) posted an increase in first quarter pretax profit to 677 million kronor (SEK). The company said demand for steel in Sweden, as well as the rest of Western Europe, continues to be strong. ``Demand continued to be strong,'' said Chief Executive Leif Gustafsson. ``This has allowed for price increases on most markets.' As for the second quarter, the company said the price trend was mixed, depending on the product and market, there were examples of both price increases as well as smaller price decreases.

`Copper prices to improve soon': Copper prices on the London Metals Exchange (LME) are likely to continue their recovery and this will helpease the current scrap tightness, said Juergen Hartmann of German copper plant Huettenwerke Kayser AG (HK). "Demand for cathodes is high, stocks are low and copper-consuming industries report full order books," he said last week. "LME prices could move sharply higher, especially if the funds give up their indifferent attitude." Copper has been trading at just under $1,900, near recent five-month highs. Hartmann said prices above $2,000 would release scrap supplies into the market. The firmer price trend was partly a reflection of the scrap tightness. Producers had been unable to buy scrap because merchants, who had taken cover at higher prices, were unwilling to sell. This had resulted in down-time at plants in France and Italy. Some producers of semi-finished copper products had been forced to remelt finished copper instead of scrap to meet orders, thereby reducing supply of grade A copper.

China sets up new metals body: China has set up the state Non-Ferrous Metals Industry Bureau to replace theChina National Nonferrous Metals Industry Corp, the People's Daily said last week. The new bureau under the State Economic and Trade Commission would assume all financial claims and debts of the disbanded corporation immediately, the paper said.

Talks on platinum undecided: Japanese precious metal traders said last week that Russia's metal export agency, Almazjuvelirexport (Almaz), has yet to notify them of when 1998 platinum group metals (PGM) supply contracts will be negotiated. "We have received no word from Russia yet," a trader at a leading trading house said. South Africa's platinum producer, ImpalaPlatinum Holdings Ltd said that it expected Russian PGM shipments to resume in early June.

(Reuters, Dow Jones and Agencies)