Metal production up 28% to P20.72 billion in first quarter

MANILA, Philippines - The country’s metallic mineral production increased 28 percent in the first quarter this year to P20.72 billion, P16.2 billion produced in the first quarter of 2009.

According to the Mines and Geosciences Bureau (MGB), the higher mineral output was a result of higher global metal prices during the period.

In terms of percentage contribution to overall production, gold, nickel and copper were the key players.

Gold took the lead, accounting for 63 percent of total mineral production value, while copper contributed 19 percent, and nickel, 16 percent.

In terms of growth rates, zinc and silver displayed the highest improvement at 149 percent and 135 percent, respectively.

Thus, while gold production contributed the bulk of mineral production in the first quarter of this year, gold mine output actually slipped seven percent with only 8,389 kilograms produced, a decrease of 618 kilograms compared to the first quarter 2009 gold output of 9,007 kilograms.

The Bangko Sentral ng Pilipinas (BSP) actually posted lower purchases of gold from small-scale mines to just 4,887 kilograms in the first quarter of this year compared to the 6,979 kilograms it purchased in the first quarter last year.

Secondary producer Philex Mining Corp.’s Padcal copper project located in Benguet province suffered a 27 percent decline in output alone.

Fortunately for the gold sub-sector, the actual decline in production was negated by the higher value of gold in the world market, trading over $1,000 per troy ounce and reaching a high of $1,120/oz in January this year.

Gold prices are expected to soar for the rest of this year as the global economy is not expected to fully recover yet.

In comparison, the silver sub-sector performed much better, posting a 70 percent increase in volume and a much higher 135 percent growth in value in the first quarter of this year.

Total silver output from January to March amounted to 12,410 kilograms with a value of P310.65 million compared to the 7,301 kilograms produced in the first quarter of last year with a value of just P132.31 million.