Mining sector expects to bounce back this year

MANILA, Philippines - Investments in the mining sector as well as mineral production this year is expected to be better on the back of increased activities of six to seven mining firms alone, according to Mines and Geosciences Bureau (MGB) director Horacio Ramos.

Last year, mining investments dropped to $375 million due to the continuing effect of the global financial and economic crisis.

For this year, 2010, Ramos said, expected to start operations, which would mean investments for operating costs, are Ramon Ang’s Eagle Cement Corp., Merrill Crowe Corp. and Red 5 Ltd.’s Siana Gold project, as well as BenguetCorp. Nickel Mines, Inc. and Century Peak Metals Holding Corp.

Mineral metallic production this year, likewise, could easily increase by as much as 20 percent, according to MGB Mineral Economics Division chief Glenn C. Noble, with the expected production of Atlas Consolidated and Mining Corp.’s Carmen Copper Corp., Sumitomo’s Coral Bay Nickel Corp., Century Peak, as well as several other mining firm producing direct shipping ore.

Last year, the MGB projected full year mineral metallic production to hit P107 billion, increasing around 39 percent compared to 2008.

“We project an increase in investments and volume this year,” Ramos said, as investments for several projects start coming in by March and April this year.

He cited Nickel Asia Corp.’s Taganito nickel project in Taganito, Claver, Surigao del Norte.

Hopefully, Ramos continued, Intex Resources would also come on-stream this year after being delayed by some objections from the local government.

Likewise, Ramos is also hoping that Benguet Corp. will finally be able to start exploration of its KingKing mines this year.

Noble, for his part, admitted that with metal prices remaining high, local mining firms would ramp up output, especially for firms engaged in gold mining.

As of last month, gold prices remained above $1,000 per ounce after hitting a high of $1,200 per oz.

Noble also pointed out that based on the projected 39 percent increase in metallic mineral production last year with just the half year operation of some mining firms, this year’s metallic mineral production would thus easily increase by 20 percent.