[+/-] : Pakistan accuses al Qaeda of killing Bhutto

ISLAMABAD, Dec 29 (Reuters) - Pakistan accused al Qaeda of killing opposition leader Benazir Bhutto, whose assassination has plunged the nuclear-armed country into crisis and triggered bloody protests.

But Bhutto's party dismissed the official explanation and said President Pervez Musharraf's embattled administration was trying to cover up its failure to protect her.

Officials said at least 31 people had died in violence since a suicide attacker killed the 54-year-old former prime minister on Thursday, stoking fears a Jan. 8 election meant to restore civilian rule in the U.S. ally could be put off.

"We have intelligence intercepts indicating that al Qaeda leader Baitullah Mehsud is behind her assassination," Interior Ministry spokesman Javed Iqbal Cheema said late on Friday.

Mehsud is one of Pakistan's most wanted militant leaders and is based in the South Waziristan region on the Afghan border. Cheema said authorities recorded an intercept on Friday in which Mehsud had congratulated his people for the attack.

But Bhutto's Pakistan People's Party rejected the claim. A spokesman said the government must show solid evidence.

"The government is nervous," he said. "They are trying to cover up their failure" to provide adequate security.

Tens of thousands of Bhutto's supporters wept and beat their heads as she was laid to rest on Friday. Troops were called out to quell protests in her home province of Sindh, where she had huge support, particularly among the rural poor.

Many mourners chanted slogans against Musharraf and the United States, which backs the former general in the hope he can ensure stability in the face of Islamist violence and relies on Pakistan as an ally against al Qaeda and Afghanistan's Taliban.

Musharraf, who seized power in a military coup in 1999 but left the army last month to become a civilian president, has appealed for calm and blamed Islamist militants for the killing.

But many accused him of failing to protect Bhutto, who died in the garrison city of Rawalpindi, home of the Pakistani army.

BLAST

Bhutto returned home from self-imposed exile in October, hoping to become prime minister for a third time.

She died when the force of the blast from a suicide bomber smashed her head into the sun-roof of her car, moments after she had waved to supporters at a rally, the Interior Ministry said.

Washington had championed Bhutto, relatively liberal by Pakistan standards, and an outspoken opponent of Islamic militancy and violence. Her death wrecked U.S. hopes of a power-sharing agreement between her and Musharraf.

An al Qaeda role, if confirmed, would show how dramatically the group could still thwart U.S. foreign policy.

"Sometimes I think that bin Laden and Zawahri must shake their heads and say, 'It's all too easy'" said Michael Scheuer, a former CIA employee who led the hunt for al Qaeda leader Osama bin Laden. Ayman al-Zawahri, bin Laden's deputy, earlier this month denounced Bhutto as an instrument of U.S. policy.

President George W. Bush has urged Pakistanis to honour Bhutto's memory by going ahead with the election.

Prime Minister Mohammadmian Soomro said elections would proceed as announced, but analysts said the assassination, following a wave of suicide attacks and the worsening of an Islamist insurgency, could make this impossible.

Hillary Clinton, battling to become the Democrat candidate in the U.S. presidential election next year, called for an international probe of Bhutto's killing and said Pakistan's government had no credibility under Musharraf.

"It is clear the Bush policy of giving Musharraf a blank check has failed," the New York senator said in Story City in north-central Iowa. "We need an international and independent investigation into the death of Benazir Bhutto."

Musharraf imposed a state of emergency in November in what was seen as an attempt to stop the judiciary from vetoing his re-election as president. He lifted emergency rule this month.

Bhutto, who became the Muslim world's first democratically elected woman prime minister in 1988, was buried alongside her father, former Prime Minister Zulfikar Ali Bhutto. He was hanged in 1979 after being deposed by a military coup.

Bhutto escaped unhurt from a suicide attack in October that killed about 140 people. The government said al Qaeda was also behind that attack.

She had spoken of al Qaeda plots to kill her. But she also had enemies in other quarters including among the powerful intelligence services and some allies of Musharraf. (Additional reporting by Kamran Haider and Zeeshan Haider; editing by Matthew Tostevin and Jerry Norton)

http://www.reuters.com/article/newsOne/idUSL27154356._CH_.2400
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[+/-] : Antimony trioxide

Antimony trioxide is a solid white powder which sinks in water, slowly dissolving.

Antimony trioxide is produced by exposing molten antimony sulphide and/or pure antimony to air at 600-800ºC. 

Antimony trioxide is used mainly as a fire prevention additive and pigment (concentration: 1-13%). The substance comes in various grades, depending on particle size. The breakdown of particle size affects both physical properties and pigment property. The finer fraction is used for pigmentation.

 The flame-retardant property, however, is not affected by particle size. This property is based on antimony trioxide reacting in the event of a fire with the surrounding material, with the result that a protective layer of various antimony compounds covers the combustible materials. Since the formation of these compounds consumes heat and because they are generally difficult to ignite, they protect the underlying material from ignition. The presence of thermally unstable halogen compounds accelerates the protective impact of antimony. Antimony trioxide is therefore nearly always used together with high-halogenated organic compounds such as chloroparaffins.

Antimony trioxide is used as a fire prevention additive in a number and variety of materials, e.g. polystyrene (present, for example, in the casings of computer display screens), in fire-retardant paint for application to wood, and in PVC plastic in cables.

Another use for antimony trioxide is as a trace element additive to phosphorescent light sources such as fluorescent tubes and TV/computer screens. Antimony reinforces the photogenic capacity of phosphorus. 

In glass manufacturing, antimony trioxide is used instead of arsenic as a plaining agent. When the paraison of glass is heated, antimony trioxide is gasified, whereupon bubbles of gas are formed which serve to create a remixture of the molten glass and also to trap other substances in the gas bubbles formed and to remove them from the glass.

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[+/-] : China feels inflation heat, hikes rates to 9-year high

China raised interest rates for the sixth time this year to cool the world's fastest-growing major economy after inflation accelerated at the quickest pace in 11 years. The benchmark one-year lending rate will increase by 0.18 percentage point to a nine-year high of 7.47%, starting on Friday, the People's Bank of China said on Thursday on its website. The one-year deposit rate will rise by 0.27 percentage point to 4.14%.

Consumer prices rose 6.9% in November, property prices climbed at the fastest pace in two years and the main stock index has more than doubled in 2007. Higher borrowing costs and increases in banks' reserve requirements have failed to stem the gains, underscoring government concern the economy may overheat. "Inflation expectations are rising and the central bank really needs aggressive action to cool them," said Stephen Green, senior economist at Standard Chartered Bank in Shanghai. "They will get even more aggressive from now on."

It's the third time this year that China has raised deposit rates by more than lending rates to curb asset-price gains by encouraging people to keep their money in the bank. The central bank said higher rates were needed to curb 'overheating.'

House prices in 70 major cities jumped 10.5% in November from a year earlier. The benchmark CSI 300 Index of stocks has climbed 147% this year. Inflation jumped in November on fuel and food costs. Chinese households' concern about rising consumer prices is at the highest level since a survey began in 1999, the central bank said.

China should let its currency appreciate, given "mounting inflation, growing asset bubbles and possible overheating," US treasury secretary Henry Paulson said this month.

The yuan has gained more than 12% against the US dollar since the end of a peg in July 2005. Before the rate announcement, the yuan closed at 7.3694 versus the dollar and the CSI 300 Index climbed 1.8%.

A stronger Chinese currency would help cool inflation by lowering import costs and slowing money inflows from a trade surplus that surged 52% in the first 11 months to $238.1 billion. In addition to interest rates, the People's Bank of China has sold bills to absorb cash and raised the proportion of deposits lenders must hold as reserves to 14.5% from 9% at the start of this year.

"Raising the reserve requirement has become more symbolic than substantial," said Kevin Lai, senior economist at Daiwa Institute of Research in Hong Kong. "At the end of the day, the root cause is the trade surplus. China needs a one-off currency revaluation to reduce inflation and liquidity inflows." China's economy, the world's fourth largest, expanded 11.5% in the third quarter from a year earlier.

Growth is likely to slow to 10.5% in 2008 from 11.4% this year on tightening measures, the Asian Development Bank said this month.

The Organisation for Economic Co-operation and Development forecasts a decline to a 10.7% pace on reduced demand for exports.

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[+/-] : Yunnan lead producers forced to suspend production due to low lead prices

The majority of lead producers in Gejiu City in southwestern China's Yunnan Province have been forced to shut down lead smelting and refining facilities since Dec. 15 this year, due to low lead prices both in the domestic and global market, industry insiders told Interfax.

"Most lead producers in Gejiu suspended production on Dec. 15, and they may remain offline for one to two months, depending on when they are offered a value-added tax (VAT) receipt from local miners," an official with Gejiu-based lead smelter Yunnan Zhengxing Lead Industry, who wished to remain anonymous, said.

Mining companies are legally obliged to issue smelters with a receipt certifying that they have paid 17 percent VAT on lead ore. Smelting companies can then deduct this from the VAT that they are required to pay on refined lead sales. However, a lack of government supervision has allowed mines in Gejiu, mostly privately owned and small-scale, to avoid paying VAT, thereby hindering discounts for smelters.

"We can make a profit when lead prices are high, even without the VAT receipts. However, current low prices have driven us into loss, forcing us to stop production," the official said, adding the majority of local lead refiners and smelters face the same financial difficulties as her company.

Gejiu is one of China's major lead production bases and has a capacity of between 600,000 tons and 700,000 tons of refined lead per annum. However, due to insufficient raw material supply, actual production is estimated to fall to between 300,000 and 400,000 tons this year, said an anonymous analyst with CHR Metals Ltd., a leading global lead and zinc industry consultancy.

"To add insult to injury, the Gejiu city government recently canceled a previous favorable tax policy for local lead producers, significantly worsening their financial situation," an anonymous official from local lead smelter, Hongcen Lead Smelting Co. Ltd., told Interfax today.

The Hongcen Lead official said that local lead producers were previously exempt from the 17 percent VAT payment on refined lead sales, and were only required to pay a combined 7 percent tax, if they employed a certain proportion of disabled workers.

"Several local smelters are currently trying to persuading the local government to reinstate the favorable tax policy, but as yet, to no avail," he said.

However, the CHR Metals analyst said that "these tax problems have existed for months now, and the real reason for the shutdown is the recent low lead price."

The benchmark three-month lead price on the London Metal Exchange (LME) has fallen 33 percent after reaching an all-time-high of $3,880 per ton on Oct. 15 this year, on the back of global demand concerns.

The production stoppage, which is expected to last at least one month, will reduce lead output by China, one of the world's largest lead producers, which may support lead prices in the future.

"We've noticed over a substantial period that Gejiu lead producers have been operating at reduced production levels due to a lack of lead ore supplies, but the recent stoppage from most producers due to low profit margins will certainly lead to significantly reduced lead supply in the domestic market," a physical trader in Shanghai told Interfax today.

"Since we are losing money through selling refined lead, large amounts of refined lead is just sitting idle in our warehouses," the Zhengxing Lead official said.

The LME benchmark three-month lead price shot up 3 percent on a daily basis to $2,605 per ton on Thursday, triggered by concern that China's lead supply will fall sharply due to the Gejiu shutdown.

The Shanghai lead spot market mirrored LME rally sentiment today, with lead spot prices reaching an average of RMB 18,900 ($2,567.93) per ton, up RMB 200 ($27.17) per ton from Thursday.

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[+/-] : China lead exports jump to 5-month high on prices

China, the world's largest producer of lead, had a more than 50% gain in exports of the metal to a five-month high in November as disruptions to shipments from rival suppliers boosted prices.

Lead exports rose to 24,352 metric tonne from 15,781 tonne the previous month, the Beijing-based customs office said on Monday. It was "very profitable for Chinese producers to export the metal" after prices surged, Shenzhen Rongtuo analyst Pang Ying said by phone on Monday.

Lead is this year's best-performing metal, with the benchmark London Metal Exchange contract for delivery in three months rising 59% to settle at $2,650 a tonne on Dec. 21. The price rose to a record $3,890.15 a tonne on October 10.

Prices climbed this year as exports by Ivernia Inc., producer of 3% of the world's lead from its mine in Australia, were banned in March after the discovery of elevated levels of lead in some residents' blood. Ivernia has campaigned to restart exports through Fremantle, saying its plan is safe.

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[+/-] : China to remove import tax on alumina, copper, coal

China will remove import duties on alumina, refined copper and coal, while raising export taxes on some steel products, coking coal and coke to boost imports of raw materials and curb profits on exports of polluting products, the finance ministry said on Wednesday.

Export taxes on semi-finished steel products will be raised to as much as 25 percent and a 15 percent export tax will be imposed on some stainless steel, welded pipes and other steel products in an effort to cool investment in the steel sector, the ministry said, confirming what industry sources told Reuters on Tuesday.

Reducing import taxes on alumina and copper would smooth the flow of raw materials into China, while pressuring margins for alumina refiners and copper smelters that are already struggling with overcapacity.

The current import tax for alumina is 3 percent while the import tax for refined copper is 2 percent. Imports from Chile, a major exporter with a bilateral free trade agreement with China, are already duty-free.

The new taxes will take effect on Jan 1.

Exporters of coking coal will now have to pay a 5 percent tax and coke exporters a 25 percent tax. But the 3 percent import tax on anthracite and coking coal will be removed.

The changes are likely to raise international prices of products for which China is a major supplier, such as steel and coke, while further damaging margins for Chinese producers.

The changes in the way China taxes its coal trade reflects its shift to a net importer of the fuel for several months this year, as its booming economy, combined with a crackdown on unsafe mining, limits its ability to meet domestic demand.

China increased the export tax on low-grade zinc to 15 percent, but kept the export tax on refined lead unchanged at 10 percent. Imposition of the lead tax this summer caused international prices to surge, but also raised costs for Chinese smelters by making imported concentrate more expensive.

It will remove the export tax on aluminium alloy.

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[+/-] : China cobalt prices up, supply tight

Prices of cobalt in eastern China rose 5 percent in the week ended on Wednesday, as domestic producers continued to decrease their production in recent weeks on reduced ore supply, industry sources said.

Prices of cobalt rose 40,000 yuan to trade between 800,000 and 820,000 yuan ($109,300-112,000) per tonne. The prices compared with around 500,000 yuan in late August.

"Ore supplies are still tight and pushing up prices. Therefore many of our competitors have shut down or cut their output," said a trader at Galico Cobalt and Nickel Corp, a leading Chinese firm.

Prices of cadmium ingot and bars remained weak, declining a further 2 to 3 percent over the past week due to weakening demand from China's battery industry after Beijing reduced export incentives early this year.

Following is a table of minor metals prices in China as of Dec. 26.
              Metal              Grade      Price    Weekly change    Pct chg
                                                      (yuan/T)      (yuan/T)
 Magnesium ingot    99.95    30200-30400          0         0
 Antimony ingot         99.85    41500-42000          0         0
 Antimony ingot         99.65    41000-41500          0         0
 Antimony ingot         99.91    41500-42000          0         0
 Manganese              99.80    17500-17700        200       1
 Manganese              95-98    18700-19000          0         0
 Cadmium ingot, bar 99.995   60000-62000      -1000        -2
 Cadmium ingot, bar  99.99    58000-60000      -2000        -3

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[+/-] : Every good wish for merry Christmas and happy new year.

Every good wish for merry Christmas and happy new year!!!
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[+/-] : Manganese, selenium & molybdenum prices

Manganese prices jumped more than 15% last week to new record highs of US$4000/t on rising demand from China's steel industry, while bismuth gained nearly 5% to new record peaks on supply shortages.

Selenium surged to 16-month highs, while molybdenum oxide climbed to a seven-month high after China said it would raise export taxes.

Manganese, used to harden stainless steel, has gained nearly 200% since January.

Supply shortages from China have triggered a meteoric rise of more than 250% in selenium prices since last October.

Reinforcing the shortages is growing demand from Japanese and South Korean firms, who are using it as a substitute for lead in the manufacture of TV and computer screens. ...
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[+/-] : Nickel, tin prices rise

Nickel and tin prices hardened in the range of Rs 2-5 a kg in the non-ferrous metal market here on Monday owing to increased demand against higher London Metal Exchange (LME) advices.

Nickel plate 4x4, 9x9 and 4x24 enquired higher by Rs 5 eac h at Rs 1,355-1,510, Rs 1,385-1,505 and Rs 1,385-1,515 a kg respectively. Tin ingot also rose by Rs 2 to finish at Rs 802 a kg on pick up in demand.

At LME nickel jumped up by $850 at Rs 26,450 per on and tin rose by $120 at $15,175, boosted the market sentiment to some extent here too.

Tin ingot 802, zinc slab 146.00 zinc dross 117.00, nickel plate (4x4) 1355-1510, (9x9) 1385-1505, (4x24) 1385-1515, cadmium plate 410, Rod 390, antimony (china) 310, gun metal scrap 260, bell metal scrap 260, copper wire scrap 332, copper super d rod 352 , copper wire bar 352, copper mixed scrap 312, C C rod 345, Utensil scrap 304, Mixed scrap 299, Chadripital 240, brass sheet cutting 238, bullet scrap 253, bharat scrap 223, accessories scrap 220, brass boring 220-240, brass radiator scrap 210 and huny s crap 240. Lead ingot 100, Lead imported 136-141, Aluminium ingots 132, sheet cutting 127, aluminium wire scrap 122 and Aluminium utensils scrap 120. ...
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[+/-] : DuPont Titanium Technologies announces a price increase for all Ti-Pure(R) titanium dioxide products sold in Asia

DuPont Titanium Technologies today announced a price increase for all DuPont(TM) Ti-Pure(R) titanium dioxide grades sold in the Asia Pacific region.

Effective January, 15, 2008, or as permitted by contract, prices for all titanium dioxide grades (TiO2) will increase $150 USD per ton in Asia except People's Republic of China.

Effective January 15, 2008, or as permitted by contract, prices in China will increase by 1.5RMB/kg.

This increase is in addition to the global price increase actions announced previously and being implemented through 4Q2007 by DuPont. Input costs associated with raw materials, energy, fuel and transportation continue to escalate rapidly. The increases implemented to date in 2007 still leave prices well below the levels required to offset both structural changes in costs and recent rapid cost escalations. DuPont Titanium Technologies will continue to work to offset these increases with productivity initiatives, but such initiatives alone cannot be expected to support margins and reinvestment economics necessary to support the needs of our customers in the growing Asian markets.

In addition to this overall portfolio increase announcement, DuPont Titanium Technologies will implement a price differential between selected elements of the standard offering and selected specialty offering elements in the product line. This will include some grades, some packaging and some logistics.

DuPont Titanium Technologies is the world's largest manufacturer of titanium dioxide, serving customers globally in the coatings, paper and plastics industries. The company operates plants at DeLisle, Miss.; New Johnsonville, Tenn.; Edge Moor, Del.; Altamira, Mexico; and Kuan Yin, Taiwan; all of which use the chloride manufacturing process. The company also operates a plant in Uberaba, Brazil, for finishing titanium dioxide and a mine in Starke, Fla. Technical service centers are located in Uberaba, Brazil; Mexico City, Mexico; Mechelen, Belgium; Kuan Yin, Taiwan; Ulsan, Korea; Wilmington, Del.; and Shanghai, China, to serve the European, Middle Eastern, United States, Asian and Latin America markets ...
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[+/-] : Magnesium prices are expected to jump in 2008

Supply shortages, import tariffs seen increasing prices

Magnesium buyers estimate they may pay an average $2.50/lb on the spot market in 2008, compared with $1.60 so far this year. Reason: Limited supply from major global suppliers, which is expected to boost market prices for the metal used in light metal die castings and, as an alloy with aluminum, in beer and beverage cans.

Market reports say U.S. Magnesium of Salt Lake City and Dead Sea Magnesium of Beer Sheva, Israel, have stopped booking guaranteed-price supply contracts for next year's deliveries. Reason: U.S. Magnesium has committed 9,900 tons of magnesium to General Motors while Dead Sea Magnesium has committed large tonnage to Volkswagen. Upshot: Spot market sales for January deliveries are being handled by traders (mostly with material from China and Russia that are subject to dumping duties) at $2.10, as compared with November deliveries averaging $1.90lb. ...
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[+/-] : Japanese aluminium giants seeking magnesium in China

Three Japanese aluminium giants announced on November 22, 2007, that they would team up to invest in a Chinese joint venture Shanxi Jinwei Magnesium Co., Ltd.

The three investors are Kobe Steel Ltd. (Kobelco), Sumitomo Light Metal Industries Ltd., and Furukawa-Sky Aluminum Corporation. It is their first investment in overseas companies as they are seeking raw material magnesium in China for their aluminium alloy production.

Taiyuan Yiwei Magnesium Co., Ltd. contributes 51% of the CNY 19.5 million registered capital of the JV and the rest 49% will be provided by the three and Alconix Corporation, who is already a shareholder of the JV. Their shares are: Kobelco and Furukawa-Sky, respectively 14.7%, and Sumitomo and Alconix, respectively 9.8%.

The JV will pour JPY 600 million (USD 1= JPY 109) in building a plant in China, which is planned to be put into production in March 2008. The plant will produce 6,000 tons of magnesium metal every year by then, including 2,940 tons to be exported to Japan.

China produces 80% of the magnesium in the world each year, according to data. ...
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[+/-] : Two Chinese vanadium giants create JV with CNY200mn

Beijing Pancheng Vanadium Trade Co., Ltd., a joint venture between Shenzhen-traded Panzhihua New Steel & Vanadium Co., Ltd. (SZSE: 000629) and Hebei-based Chengde Xinxin Vanadium & Titanium Co., Ltd., started formal operation in Beijing, reported local media on November 4.

The venture, with total registered capital of CNY 200 million, is 51% owned by Panzhihua New Steel by an investment of CNY 102 million and 49% owned by Chengde Xinxin by CNY 98 million.

The new company will mainly focus on the sale of the partners' vanadium products in both the domestic market and the global market.

Besides the outward processing of vanadium slag, the joint venture will be responsible for the trade of some special alloy products including tungsten, molybdenum, and niobium both at home and abroad.

Based on the abundant vanadium resources and huge production capacity of both companies, the joint venture will help them build a greater presence in the world's vanadium industry ...
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[+/-] : Manganese prices may extend record gains as China limits output

The price of manganese, used to strengthen steel, may extend record gains in 2008 as China curbs output, boosting costs for Japanese companies such as Nippon Steel Corp. and JFE Holdings Inc., executives said. ...
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[+/-] : New brominated flame retardant reference standards

AccuStandard has synthesised over 130 pure Brominated Diphenyl Ether congeners for use as standards for toxicology research and in the identification of unknown substances in environmental samples

AccuStandard, a world leader in the synthesis and manufacture of organic, inorganic, and petrochemical chemical reference standards, has synthesised a new range of over 130 pure Brominated Diphenyl Ether (PBDE) congeners for use as standards for toxicology research and in the identification of unknown substances in environmental samples.Featuring four octas, three nonas and the deca, this comprehensive line is synthesised with all levels of bromination.Analytical procedure methods are being developed with new regulations pending, which will place PBDE formulations on the US Environmental Protection Agency (and their European counterparts) Hazardous Target Compound Lists.Keeping pace with these new developments, AccuStandard has synthesised the new single and multi-component PBDE standards in convenient concentrations and solvents.AccuStandard also has the ability to provide laboratories with any required custom formulations of these and other compounds.The detection of the PBDE compounds using standards will help determine the manner in which they enter the environment and the human lifecycle as well as find replacements that do not possess potential for both human and environmental hazards.The technical formulations of PBDEs have been used extensively over the past two decades as flame retardants in plastics, textiles, coatings and electrical components found in many common products including televisions, computers and electrical appliances.As a consequence of their widespread use, they have become persistent organic pollutants worldwide.Recent publicity has focused on their properties as persistent endocrine disruptors and their bioavailability in mothers' milk.Reports in US and European scientific journals document disturbing facts regarding bioaccumulation in the environment and humans.California has already placed a ban on the usage of some of these compounds.AccuStandard offers over 30,000 Organic and Inorganic chemical reference standards, and stocks in several locations around the world for quick delivery.AccuStandard supplies, manufactures and also synthesises standards for the environmental and petrochemical industries.Recognized for its wide range of both routine and rare standards, AccuStandard is certified to ISO 9001:2000 and is the only major international standards manufacturer to be accredited by the US Government NIST as a Proficiency Provider under the NVLAP program (Lab Code 200389-0).

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[+/-] : Galway Resources provides an update for the Victorio molybdenum/tungsten project

Galway Resources Ltd. is pleased to provide an update on the Victorio
molybdenum tungsten project located in Deming, New Mexico. On May 30,
2007 the Company announced that it had engaged

SRK Consulting (U.S.) to provide a Scoping Study on the Victorio
Project. Subsequent to that date on August 15, 2007, an updated
independent N.I. 43-101 resource estimate was released that
incorporated the results from Galway's first 10,000 foot infill
drilling program. Then on October 25, 2007, the resource was once
again updated by SRK using a more market relevant longer term price of
$15 per pound for molybdenum.

"It is important to note that prior to October 25, 2007, everyone was
focusing on optimizing a 35 million ton resource target. However, the
latest resource estimate based on a higher molybdenum price has
considerably improved the potential for this project, with the target
resource now lying between 60 and 100 million tons. With the current
molybdenum price of $33.10 per pound and the tungsten price of $12.50
per pound, the implied metal value for Victorio demonstrates its vast
potential," states Robert Hinchcliffe, President of Galway Resources.
Mr. Hinchcliffe adds, "In early October 2007, we began our second
infill drilling program (currently drilling our fifth hole) whose
focus is on upgrading the resource, testing new areas for additional
tonnage, and to allow us to conduct more comprehensive geotechnical
studies."

-------------------------------------------------------------------------

Victorio 2007 Resource Model Run with $15 Mo and $8 WO(3)

-------------------------------------------------------------------------

Geologic Resource (October 2007) Contained Metal in Pounds

-------------------------------------------------------------------------

$ Tons

Category Cutoff (Millions) Mo % WO3 % Molybdenum Tungsten (WO3)

-------------------------------------------------------------------------

Indicated 25 67 0.10 0.10 132,000,000 134,000,000

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Inferred 25 42 0.09 0.09 74,000,000 76,000,000

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Indicated 35 41 0.12 0.12 100,000,000 98,000,000

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Inferred 35 22 0.12 0.11 51,000,000 46,000,000

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Marshall Himes, the COO of Galway Resources states, "Using a more
realistic long-term moly price and evaluating lower cost mining
methods, has allowed us to consider mining a much larger resource,
thereby reducing operating costs and improving the overall economics
of the project. This new approach has resulted in SRK having to
retrace some of the steps in their economic evaluation. We believe a
very large portion of the project will be amenable to low cost
underground bulk mining methods, and we remain bullish about the
favorable development for the Victorio project. We now believe that
this Scoping Study will be finished by SRK Consulting by the end of
January 2008."
Geological Modeling Discussion

The new resource estimates incorporated the results from the Company's
first 10,000 foot (6 core holes) drilling campaign which was completed
in the Spring of 2007. The prior estimate that was announced earlier
this year (January 29, 2007) was derived using just the data from the
165,000 feet of drilling conducted by Gulf Minerals in the early
eighties.

For all the resources estimates, the resource model was constructed
utilizing Vulcan software, and using an inverse distance weighting to
the third power grade estimation technique. The model required a
minimum of 3 and maximum of 8 composites from at least two drill holes
to assign grade to each 30' by 30' by 15' block for the Indicated
resource classification. The molybdenum and tungsten grade estimations
were limited by individual hard boundary grade shells using only
composite data from within the grade shells, by rock type.

SRK has completed independent resource estimations according to CIM
resource categories in compliance with NI 43-101 guidelines for the
Victorio project. The resource modeling parameters used are minor
modifications to the parameters used in the January 2007 initial
resource estimate, which is provided in Galway's NI 43-101 technical
report dated February 28, 2007. Bart Stryhas and Allan V. Moran of SRK
Consulting (U.S.), are "Qualified Persons" as defined by NI 43-101,
and are the Qualified Persons responsible for the resource estimates
that were announced on October 25, 2007.
Current Molybdenum and Tungsten Pricing Remain Strong

After remaining below US$10.00 per pound for the past 25 years,
molybdenum prices began to rise in January 2004. Over the past 2 years
or so, prices for molybdenum have traded around US$25.00 per pound,
and within the past months prices have moved to US$33.10 per pound.
Higher levels of global molybdenum demand are cited by experts as the
primary reasons that molybdenum prices have performed so well as of
late.

A similar story holds true for tungsten, with pricing remaining
between US$2.50 per pound and US$5.00 per pound for over 20 years.
Tungsten pricing surged in January 2005 to just over US$15.00 per
pound and has remained resilient ever since. Over the past sixteen
months tungsten prices have remained around US$12.50 per pound.
Continued steady global tungsten demand coupled with lower exports
from China are cited as two primary drivers for sustained strong
tungsten pricing.

About the Company

The company is well capitalized with over $11 million in the treasury
and is focused on developing three U.S. based exploration projects
that are favorably located and have over 300,000 feet of historical
drilling. We have established a solid technical team that has compiled
all the historical data, and has carried out 5 drilling programs on
its three U.S. based projects over the past 12 months. Management
believes that its strategic portfolio of properties offers investors
an interesting exposure to a unique blend of commodities (molybdenum,
tungsten, copper, zinc, and silver)...
read more

[+/-] : Wolf shares soar after tin mine purchase

Shares in Perth-headquartered Wolf Minerals Ltd soared on Wednesday
after the company announced plans to reopen a tin and tungsten mine in
England's south west that has been closed for more than 60 years.

The company said strong demand, low supply and buoyant prices for tin
made the Hemerdon open-pit mine attractive to Wolf, which relisted on
the Australian stock exchange on Wednesday after going off the boards
on June 12.

Its shares closed 91.73 per cent higher to $2.55.

Wolf suspended itself from the ASX while negotiations for the mine
were progressing.

The company has agreed to buy the mine for $1 million and pay about
$160,000 a year in rent over a 40-year lease, plus a two per cent
royalty.

Wolf has entered into an agreement to purchase freehold land and the
rights to other minerals from Imerys Minerals Ltd that operates
open-pit clay mining adjacent to Hemerdon.

Wolf is aiming for a mine life of 15 to 19 years but must first clear
planning hurdles.

A previous operator, North America's AMAX, applied for permission to
develop the mine, which was granted in 1986 and remains valid until
2021.

In an announcement on Wednesday, Wolf said the project was advanced
enough to allow a rapid reassessment of AMAX's 1981 feasibility study.

A British news report on Tuesday said Wolf aimed to create 500 new
jobs "but locals fear the mine will engulf some homes in the village
of Hemerdon".

After hitting $US17,500 per tonne last month, tin is currently priced
north of $US16,000 per tonne and some analysts predict it could hit
$US25,000 per tonne within the next year...
read more

[+/-] : Tungsten and tin mine to reopen

A Devon mine that is believed to be one of the world's largest sources
of tungsten and tin is to be reopened after more than 60 years.
Australian-based Wolf Minerals plans to start mining reserves at
Hemerdon mine, Plympton to meet UK demand and exports.

The company said global demand for tin and tungsten, a metal commonly
used for light bulb filament, was rising fast.

It hopes to create 500 new jobs could. But locals fear the mine will
engulf some homes in the village of Hemerdon.

Wolf Minerals said it was one of the largest tungsten and tin mines in the West.
'Huge impact'

The mine has had planning permission in place since 1986.

A deposit of tungsten was discovered in 1867 at Hemerdon and in 1916
renewed exploration revealed a widespread low grade wolframite
deposit. Mineral working was carried out between 1919 and 1920 and
again between 1934 and 1944.

The development of the mine will result in the formation of an open
pit about 850m long by 540m wide and 200m deep.

The mine is expected to have an anticipated life of about 20 years.

An access road is planned for the mine.

Parish councillor Julian Taylor said: "It will be a huge impact on Hemerdon.

"I feel really sorry for those people at the top end of the village
where this mine will actually engulf their homes. There will be an
impact on traffic.

"Our lives will change for ever because the beautiful top part of the
village will be cut off from the main part here."

A company spokesman said: "The strategically important reserves of
this valuable mineral are anticipated to meet the UK's entire demand
for this essential raw material for many years to come as well as
generating economically important exports and up to 500 jobs." – BBC
News...
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[+/-] : China's has only discovered 35% of mineral resources to date

China's current proven mineral reserves are estimated at only about
35% of the country's total, according to the latest prospecting
results from the China Geology Survey Bureau (GGS) released at the
Ministry of Land and Resources-organized China Mining 2007 conference,
held in Beijing yesterday.

The CGS, under the supervision of the Ministry of Land and Resources
(MLR), announced at the conference that China's current proven
reserves of iron, copper, aluminum, lead, zinc, manganese, niobium,
tungsten, tin and gold are estimated to account for between 26% to 59%
of the country's total reserves.

The bureau has made numerous discoveries along the Eastern Tethys
Copper Belt in the Tibet Autonomous Region, which are estimated to
contain in excess of 50 million tonnes of probable copper resource
reserves.

A large number of lead and zinc deposits have been discovered in the
Yangtze Craton, which covers Shaanxi, Hubei and Hunan provinces, as
well as the Guangxi Zhuang Autonomous Region, estimated to contain
possible lead and zinc reserves totaling 20 million tonnes.

Finally, only about 49% of China's iron ore reserves have been
discovered to date, leaving an estimated 70 billion tonnes of
undiscovered reserves....
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[+/-] : China's tungsten industry sets seven development targets

China's tungsten industry will seek future development according to
seven aspects, sources from the China Tungsten Industry Association
disclosed:

- Geological prospecting.

- Mining. To strictly control the total amount mined, standardize
mining and increase the comprehensive utilization rate.

- Smelting. Multi-type crystal and superfine ammonium paramolybdate
and ultra-thin, nano and ultra-coarse tungsten powder and tungsten
carbide powder will be developed.

- Hard alloy. High-precision and high function lapping and coated
alloy and supporting tools will be developed.

- Tungsten alloy and materials. High function special tungsten wire
and large-size plate, nano tungsten alloy materials, tungsten-base
compound materials, tungsten-base high rate alloy and compound
materials of special structures will be developed.

- Tungsten steel. Professional factories adopting advanced
technologies will be built to produce quality high-speed steel.

- Tungsten chemicals. Tungsten chemical products with high technical
content and high added value will be developed....
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[+/-] : Prices are slipping on increasing supply

Tungsten prices are sliding slightly this month to an average
$11.88/lb from improved supply, after averaging $12.49 in the domestic
market for the past 10 months. For the 10 months before that, when
supply was very tight, tungsten prices averaged $13.40/lb.

This month's slippage is being pinned to recent reduced metalworking
activity by the automotive, appliance and machinery industries.

Looking ahead, tungsten prices may slip further since new supplies of
tungsten concentrate are entering the world market, as expected, from
new production facilities in the U.S., Peru, Australia, Canada, China,
Spain, Thailand, Uzbekistan and Vietnam.

A North American supply executive recently told industry publication
Metal Bulletin that, "We're seeing a lot of new capacity coming
online, and there's just an awful lot of stuff out there today. The
spot market will have no choice but to adjust to more realistic supply
levels."...
read more

[+/-] : Ganzhou tungsten output value to exceed CNY 20bn in 2011

Ganzhou in Jiangxi Province is to see the annual output value of its
tungsten industry exceed CNY 20 billion in 2011 and itself become
China's prospecting, exploitation, processing, scientific research and
distribution center of tungsten resources.

In five years, Ganzhou's tungsten industrial cluster will turn in more
than CNY 2.5 billion pre-tax profits every year; ten companies will
have annual sales revenue of over CNY 1 billion each; and two or three
companies will float shares.

Ganzhou's reserve of tungsten ore and the output of tungsten
concentrates both contribute 30% to the total numbers of China. The
surplus reserve of wolframite even accounts for 70% of China's like
ore reserve and 60% of the global one.

Currently, an array of cooperative projects with companies like China
Minmetals Corporation, Advanced Technology & Materials Co., Ltd., and
Sumitomo Corporation has settled down in Ganzhou. A group of local
companies are rapidly growing, including Chongyi Zhangyuan Tungsten
Co., Ltd. and Yaosheng (Jiangxi) Industry & Trade Development Co.,
Ltd. – SinoCast...
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[+/-] : Beijing reserves its resources

While we keep happily digging up our metals and shipping them out, the
Chinese are taking a slightly longer term view. The Ministry of
Commerce and the National Development Reform Commission have
reclassified China's tungsten, molybdenum, tin, antimony and fluorite
as being in the "prohibited category".

What this means is that no foreign company can get involved in mining
these metals. Add this to earlier moves to raise export taxes on
metals and the message from Beijing is clear: you westerners can
exhaust your deposits and in 50 years we'll still have ours.

So, a company like King Island Scheelite can no longer use its
expertise in tungsten to enter a joint venture in China, but Hunan
Nonferrous Corp is welcomed here with open arms to take a 50-50 joint
venture with KIS on King Island. Who are the suckers?

What China's move means for these metals is that prices, let alone
demand, are not going to collapse. KIS is expecting to start tungsten
production early next year, probably being beaten across the line by
Queensland Ores and running neck and neck with Thor Mining. Paradigm
Metals and Vital Metals are still exploring, the latter recently
reporting a test concentrate of 78.4 per cent tungsten, well ahead of
the saleable grade threshold of 65 per cent.

Over in Spain, Heemskirk Consolidated is working its Los Santos
tungsten mine seven days a week instead of five and expects to be
producing by March.
The China syndrome

There is no question Asian investors are alive to any opening for
specialty metals. Republic Gold has just made a $5.73 million
placement, much of which went to Malaysian Chinese investors. They are
very interested in Republic's Mt Carbine tungsten project in
Queensland, just 40km from Vital's Watershed deposit.

There is no question that Mt Carbine has tungsten – it was mined for
that metal from the 1970s until 1986 until the Chinese (them again!)
flooded the world market with tungsten, putting mines in other
countries out of business as the price plummeted.

Republic has antimony also at one of its Queensland gold deposits.

This metal is fetching a strong $US5300/tonne, so Republic is planning
to pin its ears back on that project, too.

While on Chinese doings, there has been a development at YTC
Resources, which is controlled by the world's largest producer of tin
Yunnan Tin. On Friday, the Hong Kong-listed Poly Investments Holdings
did a deal with its fellow Chinese operation to take a 19.9 per cent
stake in the Australian listed arm. No explanation was given.

YTC has been reporting good grades from its Doradilla project in NSW
with significant tin assays, along with zinc, copper and indium.
Doradilla was a tin producer until 1990, when metal prices had
collapsed. Poly is in the business of metals trading and operating
power stations in Henan province.
DIY blue-chip investment

Foster Stockbroking has had a novel idea for its clients: don't buy
BHP Billiton, build your own.

The brokerage says that, when the Global Australian was sitting at a
P/E of eight, earlier in the year, the stock screamed "buy me". Now it
looked fairly valued. So investors could seek to build their own
diversified portfolios from picking up undervalued miners covering
BHP's component parts.

* Coal: Aquila Resources, which would start producing coking coal next
year at its Isaac Plains mine in the Bowen Basin. Foster says the
market is not factoring in Aquila's iron ore prospects in the Pilbara
and South Africa. An alternative is would be Resource Pacific
Holdings.

* Iron ore: Mount Gibson Iron offered full leverage to direct shipping
ore and would benefit from the expected large leap in iron ore prices
for 2008. Alternatives: Australasian Resources or Strike Resources.

* Zinc: Terramin Australia, which starts mining at Angas in eight
months. Alternative: Zibifex.

* Copper: Equinox Minerals with its 37-year mine life in Zambia.
Alternative: Anvil Mining.

* Nickel: Mirabela Nickel. The obvious choice might have been Salay
Malay Mining, but its shares have run hard on the coat tails of
Xstrata's bid for Jubilee Mines. Mirabela is about to start building
its Santa Rita sulphide mine in Brazil. Alternative: Sally Malay.

* Gold: Centamin Egypt with gold expected to be produced next year.
Alternative: Lihir Gold.

* Platinum: Platinum Australia. Mining is due to begin at Smokey Hills
in January. The metal's price recently hit a new record. Alternative:
Aquarius Platinum.

* Uranium: Energy Resources of Australia. The worst flooding at Ranger
has occurred but the spot price is recovering, now at $US90/lb.
Alternative: Bannerman Resources.

* Oil and gas: Santos, which provided significant leverage to the oil
price and is pursuing coal-seam gas and LNG projects. Alternative:
Energy World Corp.

Meanwhile, Pure Speculation is always keen to encourage consolidation
and co-operation in the resources sector. So we will watch with
interest the attempt by four juniors, which have land around
Ravensthorpe, looking for a variety of metals, including nickel and
lithium.

Traka Resources, Tectonic Resources, Galaxy Resources and Pioneer
Nickel have tenements holdings covering 30km of prospective iron-ore
deposits. The companies have agreed to share iron-ore information and
co-ordinate work for that metal.
Investor update

WE reported admiringly last week on the, as yet, unrealised $40
million gain made by African Lion on its investment in Mauritanian
iron-ore play Sphere Investments.

No sooner were copies of that day's newspaper being slid under
hotel-room doors and read in trains, trams and buses, than African
Lion, part of the Lion Selection Group operation, reported it had sold
its stake in Pretoria-based Platmin.

African Lion had invested $US9.8 million ($10.7 million) in Platmin
and sold at $US101.6 million, a 1037 per cent profit. As Mr Micawber
would say, result happiness.

Meanwhile, Bell Potter, Stripe Capital and Tolhurst have ended up
adding more shares than expected to their holdings in Aurora Oil & Gas
after taking up the shortfall in the one-for-10 rights issue. Only
15.2 per cent of the rights issue was subscribed, leaving 15.42
million shares to be placed by the underwriters. Aurora has separately
raised an additional $10.6 million from "professional and
sophisticated" investors at 53c a share.

Aurora, which closed on Friday at 48c, thought it had left itself
enough time since announcing the rights issue in July. The idea was
that results would be in from the Sugarloaf-1 well in Texas, of which
it has 20 per cent, and these would encourage shareholders to take up
the issue.

But delays of various sorts put paid to that plan, and those results
are still awaited (as they are at Adelphi Energy and Eureka Energy,
which also have stakes in Sugarloaf).

But the words is that the underwriters aren't sweating, given the goal
at Sugarloaf is several trillion cubic feet of gas along with
condensate.
Tailenders

* WE have often bemoaned the fact that most gold stocks fail to follow
the gold price when it goes up, but do when it falls. So it was
cheering to see shares in Kalgoorlie-Boulder Resources get a huge
boost as its Norseman project resource was raised 36 per cent to
630,000oz. That gnashing of teeth you hear probably comes from
Canadian Kinross Gold, which spent $7 million drilling there but
thought it too small, and from Joseph Gutnick's sister Pnina Feldman,
who tried but failed to get her float away based on the property. KAL
bought out Feldman.

* We love coincidences, such as China lending the Congo $US5 billion
in September and then suddenly that country starts to talk about
confiscating projects owned by western companies. But the Congo
problems will soon be but a distant memory to shareholders of New
World Alloys, which is flicking its copper smelter into a London
vehicle and will be looking for new projects.

* Hudson Resources has been a low-key company, but watch out for
announcements in coming months as it puts into place its new bauxite
and zinc strategy. Its Tiaro coal project, near Bundaberg and a
railway line, is likely to be moved into a separate IPO....
read more

[+/-] : Risks in mining investment in China

According to Mr Liu Shuchen of China's Ministry of Land and Resource
investment in mining holds a long payback period and time is the most
unstable investment factor.

He said that "Another risk is the shortage of special information and
experience. As for many mines, you do not know the information
underground."

He informed that "Although a mine holds a complete set of evaluation
reports, there are still many actual situations which do not match the
evaluation report when it is sold. It is very normal for us industrial
insiders, but many investors may not stand it."...
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[+/-] : Zinc Supply May Gain 11% as New Mines Start Output, UBS Says

Supply of zinc, the worst-performer on the London Metal Exchange this
year, may gain 11 percent next year as 15 new projects boost output,
outpacing strong demand for the metal used to galvanize steel, UBS AG
said.

Production from the projects, including the $800 million San Cristobal
mine in Bolivia, will help create a surplus of 600,000 metric tons
next year, UBS analysts led by Glyn Lawcock said in a report dated
Nov. 30. A possible new tax on zinc exports in China may also boost
supply as producers seek to ship more of the metal before it's
introduced, UBS said.

The price of zinc has dropped 39 percent this year as stockpiles of
the metal gained. Zinc, copper and aluminum have all declined in
trading on the LME this half on concern U.S. economic growth will
slow, crimping demand for metals.

"Concerns about increasing zinc supply have dragged the metal down,
making it the weakest performer of the base metals in 2007," UBS said.
"The concerns have been exacerbated by credit crunch and a slowing
U.S. economy, which have pulled the whole base metals complex down."

Zinc for three month delivery in London rose $85, or 3.3 percent, to
close at $2,595 a metric ton on Nov. 30. The metal has dropped by
almost half from the all-time closing high of $4,515 a ton on Nov. 9,
2006.

The price will average $3,300 a ton in 2008 according to UBS. That
compares with the $2,931 mean forecast of 11 analysts compiled by
Bloomberg. Citigroup Inc. last month cut its 2008 forecast for the
metal by 28 percent.

Demand will rise 4.2 percent to 12.3 million tons next year and gain a
further 4.5 percent in 2009, UBS said. The 15 new projects scheduled
to start this year will boost supply 11 percent to 12.9 million tons,
it said. Production will rise 3.6 percent in 2009, the report said.

Kagara Zinc Ltd. is the bank's preferred zinc stock in Australia. UBS
said Kagara has low cost projects and strong growth potential....
read more

[+/-] : SMM Weekly Review and Forecast (Dec.3-Dec.7)

Copper:
As copper for December delivery on Shanghai Futures Exchange will
approach its delivery day soon, spot price is occurred high premium.
Consumptions have been stimulated, and transactions are very active.
Supply became tight in Shanghai market, which also supported the
price. The copper market will face wide range fluctuation in December.

Aluminium:
Aluminium on SHFE will maintain consolidation, fluctuating at around
RMB18,000 per tonne. Chalco raised alumina spot price to 3800 from
3500 on November 27, which became the main factor to support recent
aluminium price. As a result, spot price is forecast to be relatively
steady this week. Besides, the producing cost will limit price falling
trend and support the selling price, consumers also gain confidence
when steady price appeared. But be cautious to the chain reaction of
panic selling of copper and zinc might also impact aluminium.

Lead:
Lead in Shanghai market is not ample, and many smelters are not
willing to sell considering their producing cost, but transaction can
hardly succeed at relatively high level at RMB22,000 per tonne. As a
result, lead price is facing a dilemma. Wide range of fluctuation will
affect the expected supporting price level of traders.

Zinc:
In December, domestic zinc market will meet severe situation. Though
most larger smelters want to maintain selling price at RMB20,000 per
tonne, but panic selling appeared in the market and has broken the
"price alliance" soon. Whether supplier and consumers could agree with
a price level or not will depend on their capital situation in the end
of this year.

Tin:
Shanghai tin maintains in the price range of RMB144,000 to 147,500 per
tonne, weak volatility. As lack of demand, "Yunxi" and other famous
brand insist their selling price, which leads to an inactive market.
But with end of the year coming soon, facing capital pressure, some
tin producers and traders might lower the price to impact the inactive
market.

Nickel:
London Metal Exchange nickel for delivery in three months is falling
dramatically these days. In domestic market, more and more nickel is
imported, which impacts Jinchuan Group Co., Ltd to lower their
quotation. Price will continue to consolidate in order to face such
market situation, falling trend is inevitable. Consumption is still
dull....
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[+/-] : In 2006, China Produced 34% of the World's Refined Lead Output

The nonferrous metal market of China has been open since the year
1993, and domestic lead-zinc market is largely influenced by
international market due to their connection. In 2003, China became
the world's largest lead producer, leaving America behind. In 2006,
the world's refined lead output amounted to 8.05 million tons, of
which 34% came from China.

Along with the resuscitation of nonferrous metal industry in recent
years, China has increased the investment in lead smelting and mine
exploitation, of which the production capacity of lead smelting grew
more rapidly.

At present, China is the world's largest lead producer and consumer.
Along with the rapid growth of China's economy, the usage of basic raw
materials has been increased year by year, which also boosted the
growth of global consumption.

In 2007, the global economy is supposed to maintain the vigorous
growth for the fifth year. Although America's economy growth will slow
down somewhat, the GDP may rise at 2%-3%. However, Europe, Japan and
most newly-rising markets will maintain the vigorous momentum.

Due to the scattered production capacity of domestic lead-zinc mines,
it's difficult to get the output statistics of small-size mines.
Therefore, it's estimated that China's actual output of refined lead
ore output will be much higher than 740 thousand tons. Meanwhile, the
secondary lead and lead ore concentrate will fetch up the supply gap
of domestic lead ore concentrate. Supposedly, China's self-supplying
ratio of lead ore concentrate will be less than 50%; along with the
gradual increase of China's lead smelting production capacity, its
demand for imported lead ore concentrate will also grow continuously....
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[+/-] : Manganese Prices May Extend Record Gains as China Limits Output

The price of manganese, used to strengthen steel, may extend record
gains in 2008 as China curbs output, boosting costs for Japanese
companies such as Nippon Steel Corp. and JFE Holdings Inc., executives
said.

Japan's import price for so-called silico-manganese, the alloy used in
steel-making, jumped 73 percent in November from a year earlier to
141,734 yen ($1,278) per ton, Japan's Ministry of Finance said Nov.
30.

"Steel materials such as manganese are in chronic short supply," said
Atsushi Yamaguchi, an analyst at UBS AG in Tokyo, in a phone
interview. Higher prices may have a "negative impact" on earnings if
steelmakers fail to pass on costs.

Nippon Steel, Japan's largest producer, JFE Holdings, the
second-biggest, and South Korea's Posco said higher raw material and
shipping costs damped earnings in the most recent quarter.

China produces half the manganese alloy used globally for
steel-making, partly from imported ore, according to Japan's
Ferroalloy Association. Steelmakers in Japan depended on Chinese
imports for 64 percent of the 340,607 tons of silico-manganese they
used in the year ended March 31, 2007.

"Manganese alloy prices will very likely rise in 2008," said Yuichiro
Sekine, an official in charge of procuring materials at Nippon Steel
Trading Co., a unit of Nippon Steel.

Concern over electricity shortages and environmental pollution spurred
the Chinese government to cut production of manganese alloy, said
Yasushi Takagi, a director at Nippon Denko Co., a materials supplier
to Nippon Steel, which imports all its silico-manganese from China.

Chinese Curbs

The Chinese government said in 2005 it planned to cut annual
production capacity for ferroalloys including manganese by 23 percent
to 17 million tons by 2010 from 22 million tons.

"There's no substitute for manganese, which is indispensable to add
solidity and purity to steel," said Yasuhiko Tamakoshi, director of
Chuo Denki Kogyo, a supplier of materials to Sumitomo Metal Industries
Ltd. "As the only possible replacement, nickel is always more
expensive." Crude steel uses 8 to 10 kilograms of manganese per ton,
he said.

"Manganese prices are fueled purely by a physical shortage, not
speculative money, and they will probably extend gains next year,"
Tamakoshi said in a phone interview yesterday.

Japan's import price for ferro-manganese, another alloy used to
strengthen steel, rose 46 percent to 141,792 yen per ton in the past
year, Japan's finance ministry said.

"Panic buying by steelmakers has pushed up prices," said Hideo
Uchiyama, a marketing official at JFE Holdings unit Mizushima
Ferroalloy Co., in an interview....
read more

[+/-] : China's aluminum market regains upbeat momentum

BEIJING (Xinhua via COMTEX) - China's smaller aluminum producers
recently announced to raise aluminum price from 3,600 yuan/ton to 3,
800 yuan/ton following monopolizing Aluminum Corp of China's (Chalco)
price hike on Nov. 27, marking significant change of domestic aluminum
market.

This price hike may results from increasing imported bauxite price and
brisk domestic demand. Indonesian government attaches more
restrictions for bauxite export and has halted production of
unlicensed local producers.

During October, China imported 1.091 million tons of bauxite from
Indonesia in comparison with 1.926 and 1.55 million tons in August and
September respectively.

Plus, China imported 4.096 million tons of bauxite from India during
Jan.-Oct., up from 217,000 tons in 2006. Furthermore, the CIF price of
imported bauxite from India hovers at above 80 U.S. dollars per ton,
up 60 percent from the beginning of 2007.

Surveys show that China's prime aluminum output recorded obvious
growth during Aug.-Oct. with an annualized output of 13 million tons.

"We have emptied our four aluminum stockpiles thanks to increased
orders and we expect smelters could absorb the lifted prices," said
sources from Aluminum Science and Technology Co., Ltd. in east China'
s Shandong Province.

Chalco's last price adjustment happened in September when it cut
aluminum price from 3,900 yuan/ton to 3,500 yuan/ton due to market
glut....
read more

[+/-] : Dowa to extract metals from used cell phones

Dowa Holdings Co., whose group includes a major nonferrous metal
company, is planning to import used mobile phones from Southeast Asia
to extract nonferrous metals such as gold and copper from them for
recycling, sources close to the company said Saturday.

The Dowa group also plans to dispose of harmful substances being used
in such phones, they said.

The plan will be a joint project with the Geneva-based Secretariat of
the Basel Convention, which is aimed at controlling transfers of
hazardous waste between nations and its disposal, according to the
sources.

The Dowa group is known to have the world's most advanced technology
for extracting nonferrous metals from electric and electronic parts.

It plans to secure nonferrous metals, for which demand has been
growing, and contribute to establishing an international system to
prevent inadequate disposal of harmful substances.

Nonferrous metals, such as gold and copper, are needed for making
substrates used in mobile phones.

In Southeast Asia, however, used cell phones are transported to China
for recycling, where only precious metals are extracted in many cases.
Hazardous substances are often left in the phones and are incinerated
with ordinary waste, according to the sources.

The Dowa group has the only smelter in Asia capable of extracting
individual metals from ores containing several metals such as copper,
gold and lead.

The technology also can be used to extract metals from cell phone substrates.

Concerned with the spread of harmful substances from Southeast Asia,
the secretariat asked Dowa, through the Environment Ministry, to help
collect resources.

Dowa, which will first collect used mobile phones from Thailand,
Malaysia and Singapore, has begun looking into methods with the
secretariat on how to collect such phones and how many can be
imported.

Imported mobile phones will be crushed and then put into a furnace to
extract nonferrous metals such as gold, copper and lead.

Arsenic, a hazardous material that will be separated, will be buried
in the smelter's final disposal area....
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[+/-] : China's moves with minor metals signals continued tightening of majors

If steel is the rice of industry and oil is the blood, then 'minor
metals' are the vitamins – since only a small amount of these
commodities are needed to alter the properties of metal alloys.

This description comes from a delegate at the Minor Metals and Rare
Earth Conference held in Hong Kong last week – a group of commodities
UBS Securities' Peter Hickson labels "not very transparent," but
growing rapidly.

Indium, bismuth, gallium and antimony are just a few of the names that
have become critical to both new high tech and material inventions,
the analyst told clients in a note.

While China contributes to more than 95% of rare earth supply its
"changing attitudes to energy, resources and the environment is
tightening supply," Mr. Hickson said. "Costs are being passed through
and future supply is strategically vulnerable, in our view.

He expects the strain to come from technological demand linked to
climate change as well as other new energy and environmental trends.

However, investors looking to get a piece of the minor metals action
are limited by the small size of the market.

Valued at less than 4% of the current copper market, the minor metals
and rare earth segment addressed at the Hong Kong conference is worth
only US$2.5-billion, Mr. Hickson estimates.

Only small-cap names offer leverage in the sector, including names
like Lynas, Navigator Resources and Arafura Resources in Australia, as
well as U.K.-listed Central African Mining and Nikanor. There are also
Chinese companies with leverage, he noted.

The key takeaway from the conference is China's dominant role in the
global minor metals and rare earth markets, Mr. Hickson said,
highlighting the fact that its attitudes are changing. China is
tightening restrictions on exports, more closely managing resources
and environmental controls, and boosting taxes on resources through
royalties.

He thinks these policy moves signal that China will continue to
tighten its supply of all major metals, such as aluminium, steel and
nickel.

So with demand for rare earth and minor metals surging in
technology-related sectors, with an estimated annual mean growth rate
between 10% and 15%, investors should get to know these names – even
if they haven't heard of rhenium or neodymium before....
read more

[+/-] : Smaller metal firms shy away from costly EU law

New European Union rules requiring firms to register and document
metals and other substances they handle is causing consternation among
companies which fear the law will be costly and difficult to meet.

EU figures suggest the direct cost to European industry, including
chemicals companies, of meeting the regulations are likely to be as
much as 2.3 billion euros ($3.37 billion) over 11 years.

"We are absolutely horrified by the potential cost to fully comply
with all the legislation for the products we handle," said Peter
Nicholson, director at London Chemicals and Resources, an
international distributor and supplier of metals.

The law covers all metals from high volume copper and aluminium to
minor metals such as indium, used to make liquid crystal displays for
screens, and selenium, used in glass making, construction and
agriculture.

The directive -- REACh, or Registration, Evaluation and Authorisation
of Chemicals -- is designed to protect people and the environment from
potentially hazardous materials found in manufactured goods, including
clothing and vehicles.

"It could cost us millions – just to continue our day to day
business," Nicholson said.

The rules apply to all companies handling metals and other substances
such as chemicals, including importers, manufacturers and those in the
construction industry.

Industry organisations say many downstream users, such as fabricators
of glass, are still unaware of the legislation.

"We are trying to convince small and medium-sized firms it is really
necessary to start with REACh now," said Christina Messner,
responsible for environmental policy at the German metal association
Wirtschafts Vereinigung Metalle.

She said it was necessary for the firms to start and get a clear view
of which substances that would have to be pre-registered and then
secondly to focus on data collection.
Two parts

By June 2008, metal firms must have pre-registered the substances
falling under the new law and by 2010 technical dossiers describing
their environmental impact must be ready for submission to the
European Chemicals Agency (ECHA).

"Each company will have a registration cost for each substance it puts
on the market," said general manager Tony Newson of the Stainless
Steel Producers Group at the European Confederation of Iron and Steel
Industries (EUROFER).

The steel industry has nearly 30 different substances it would have to
register, but due to sensitive information sharing when setting up a
consortium -- and sharing the cost when submitting a technical dossier
-- the original plan was delayed.

"The plan was to have an iron and steel cooperation platform but this
is taking rather a long time to get off the ground," Newson said,
referring to difficulties to set up a consortium.

In other industries, lawyers had been involved to reduce the risk of
sharing sensitive business information by using confidentiality
agreements when setting up the consortiums.

Newson said the EU Commission had calculated that if a firm had no
previous data and handled more than 1,000 tonnes of a substance, the
cost of meeting the rules could be up to 2.5 million euros.

"With the steel industry, most of the substances that we use are more
than 1,000 tonnes -- so it can be very expensive."

In the tin industry ITRI, a UK-based consultancy, had formed a
consortium with five members and an additional two were awaiting
approval to share the costs of gathering information.

"For the four years, 2007-2010, we have got around $3 million budgeted
and that is the minimum amount we anticipate," said Kay Nimmo, manager
of environmental affairs and responsible for REACh at ITRI.

"It is shared according to the tonnages of the members for the
European market," she added.

She said the largest challenge would be the technical work necessary
to generate the right kind of data required by the EU....
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[+/-] : US Antimony receives mining permit

Montana-based US Antimony has received a mining permit for its San
Miguel antimony-silver project in Mexico's Queretaro state, the
company reported in a statement.

Additionally, the permit for mill construction is expected in two
weeks, CEO John Lawrence told BNamericas.

In addition, a pipeline from a wastewater treatment plant is under
construction, the statement said.

Initial feed for the flotation mill will be from dumps from previous
mining operations, which are estimated to hold some 10,000t of mill
feed.

Meanwhile, mining will occur on four mine faces in existing,
historically mined pits. The company aims to start mining by June 1,
Lawrence said.

Sample assays from the faces, each more than 3m high, included 3.72%
antimony, 0.04oz/t gold (1.09g/t), 3.72oz/t silver; 1.69% antimony,
0.04oz/t gold, 1.82oz/t silver; 2.63% antimony, 0.01oz/t gold,
8.72oz/t silver; and 4.74% antimony, 0.02oz/t gold and 18.4oz/t
silver.

Concentrates of antimony, silver and gold from the 150t/d mill will be
processed at US Antimony's smelter at Estacion Madero in Mexico's
Coahuila state.

US Antimony describes itself as the only significant US-based producer
of antimony products, since China controls 89% of the world antimony
production....
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[+/-] : Japan light metal makers to launch magnesium ingot JV in China

Kobe Steel, Furukawa-Sky Aluminum, Sumitomo Light Metal Industries and ALCONIX Corporation announced on Thursday they established magnesium ingot making joint venture in Taiyuan, Shanxi of China with Taiyuan Yiwei Magnesium Industry of China.

Japanese firms try to secure the stable supply source through the joint venture when magnesium ingot price exceeds US$ 3,000 per tonne. – Japan Metal Bulletin

...
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[+/-] : Antimony shot and Lead shot- Shotshell Components

Lead became the choice metal for firearm projectiles – pretty much about the same time firearms were invented. Lead is dense and an excellent carrier of energy. Lead is malleable - it conforms. In larger slugs, this malleability delivers punch.

Lead pellets are classified by their alloy content. Antimony is a brittle flaky, crystalline metal. It looks like a raw coal with a bluish whitish metallic hue. Antimony is toxic. Lead, when alloyed with antimony, becomes a better pellet. Modern drop shot is alloyed about .5% antimony. With antimony, hardness is relative to the percentage of antimony added, and antimony improves surface tension, creating a rounder pellet.

Chilled shot is about 98 percent lead and has an antimony content from about .5% to around 2%. Magnum shot has between 3% and 6% antimony added depending on size. Smaller pellets have higher percentages while larger sizes have smaller percentages. It's hard to nail the exact antimony content, as manufactures purchase their ingots in pre-alloyed lots. Secondly, when rejected pellets are remelted the antimony content is altered. So, in order to have an exact reading, we would have to exclude all the rejects. To keep prices reasonable there's a bit of "guesstimation" based on pellet hardness.

As you can see, chilled lead is generally softer and more susceptible to deformation. For this reason, we limit our use of chilled shot to spreader loads and close-range sporting shots when "flier" pellets can actually work to the shooters advantage. For hunting, always use magnum or plated shot.

BPI warehouses the very best brands of lead shot. This is extra hard, high quality, high antimony AMERICAN MADE lead shot. BPI's chilled lead all feature the highest 2% antimony. Magnum lead #6 and #9 are 4% antimony, sized #7, 7-1/2, 8 and 8-1/2 are 6%. ...
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[+/-] : Titanium – a real alternative to antimony catalysts in PET bottles

Plastic bottles, clothing, videotape, packaging film... all of these articles are made using polyethylene terephthalate (PET) which is commonly called "polyester". The most common route for the production of PET is the reaction of pure terephthalic acid (PTA) with ethylene glycol helped by a catalyst. For many years now the catalyst of choice in the polyester industry has been antimony. Some other metals have been used (notably germanium and titanium) but the vast majority of PET produced today is made with antimony. However, it would seem that the tide is beginning to change and more and more companies are realizing the benefits of titanium as a catalyst for the production of PET bottles, fibres and films.

At the recent PET Strategies 2006 conference in Atlanta, Jim Bruening of Wellman Inc. presented a paper on the production of polyester resin for bottles using titanium catalysts1. Wellman is a world leader in the production of PET resin for bottles. Mr. Bruening stated that Wellman have chosen to make titanium catalysts their chosen strategic technology platform, and he believes other companies in the market will follow suit. Wellman also launched their new grade of resin specifically for carbonated soft drinks and bottled water, Ti842, at the conference. This grade will compliment their existing offering for hot-fill beverage bottles, the titanium catalyzed PET resin, Ti818.

Traditional reluctance to use titanium was due in part to colour issues and a lower activity in the solid-state polymerization (SSP) process step. However, Mr Bruening presented data showing that Wellman had surmounted these problems and were thus able to achieve the full benefits of the titanium catalyst. In hot-fill applications, titanium PET was more resistant to shrinkage than the antimony-catalyzed bottle and Mr Bruening said that the titanium catalyst opened the door to light-weighing hot-fill bottles because of superior strength. Titanium also gives a higher clarity bottle and this has seen the adoption of the titanium-catalyzed resin for critical applications such as white grape juice bottles.

In carbonated soft drink (CSD) applications, Wellman's new resin grade Ti842, also demonstrated significant advantages over the traditional antimony catalyzed resin. It showed reduction in cycle times of 5% to 10% during the injection moulding process. This corresponds to an increase in output and efficiency for the producers of bottle pre-forms. A 25%-30% drop in acetaldehyde content was also observed in the Ti842. Acetaldehyde is a by-product of the PET process and can have an adverse effect on the sensory qualities of the packaged beverage. It is particularly important in bottles for water.

The issue of antimony supply was also raised in the presentation. Over 90% of the antimony used in the world today is supplied from China, and the price of antimony catalyst has risen sharply recently as supply has become constrained. A notable effect was seen when an accident closed down one of the main mines. By contrast, titanium pricing has remained stable driven by its abundance in the earth's crust and its widespread production in many countries2.

For a number of years now, Johnson Matthey Catalysts's VERTECTM business has been collaborating with Wellman in the incorporation of titanium catalysts into PET resins and continues to supply Wellman with commercial supplies of titanium products today.

Wellman have nailed their colours to the titanium mast. It now remains to be seen if the rest of the market will follow suit.
...
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