MANILA, Philippines - The Mines and Geosciences Bureau (MGB) is projecting a 10-percent increase in mineral production value this year due to the improvement in the prices of gold, nickel and copper as the global economy starts showing signs of recovery.
However, it remains uncertain if the MGB will achieve its target of generating investments of up to $650 million this year, with the actual figure as of yesterday recorded at only $300 million.
The MGB had originally projected a P100-billion mineral production value this year, about P13 billion higher than the P87-billion actual mineral production value recorded last year.
According to MGB Director Horacio Ramos, prices of nickel and copper have improved, prompting local mining firms to increase their production of nickel laterite ores.
The price of nickel which had crashed from $16 per pound to as low as $6/lb last year, has improved to around $8 to $9/lb, prompting most of the nickel producing firms to resume production.
Last year, several nickel firms had slowed down and even mothballed their operations due to the steep drop in nickel prices. With prices improving, these firms are once again stepping up their production, Ramos said.
Likewise, the continuing high prices of gold is attracting more mining firms to step up production, Ramos continued.
At least five gold mining projects are starting production, he added.
Gold prices are hovering at $960 per ounce.
The firms that are going into production, Ramos said, include Philsaga Mining Corp.’s Coo mine, CGA Limited’s Filminera Resources Corp.’s gold project in Masbate, Atlas Consolidated’s Carmen Copper Corp. in Toledo, Cebu, Coral Bay Nickel Corp.’s project in Palawan and even the Rapu-Rapu mine in Albay.
But even though mineral production values are expected to increase this year, Ramos is not as confident in hitting the agency’s mining investment target this year based on the actual investment figure of $300 million as of yesterday.