Mineral output up 36% to P144.4B in 2010

MANILA, Philippines - The value of mineral production increased 36 percent to P144.4 billion last year, the Mines and Geosciences Bureau (MGB) said yesterday.

The MGB said the metallic sector contributed P111.1 billion or 77 percent of the total while the non-metallic sector accounted for the remaining 23 percent or P33.3 billion.

In the metallic sector, gold accounted for 63.47 percent, or P70.51 billion followed by nickel with 20.70 percent, or P22.99 billion.

The copper contributed 14.20 percent, or P15.78 billion, while the three remaining sub-sectors – silver, chromite and zinc sub-sectors turned in a combined 1.6 percent share or P1.81 billion.

There are 28 metallic mineral producers, 15 of them nickel mines, eight primary gold mines with silver co-product, three copper mines with gold and silver co-products, a polymetallic mine, a chromite mine, and numerous small scale mining operations.

In 2009, the number of metallic mineral producers was 23.

The non-metallic minerals sector posted an annual growth rate of 26 percent, from P26.5 billion in 2009 to P33.3 billion in 2010.

The major non-metallic mineral commodities produced in the country are sand and gravel; and limestone for cement manufacture, accounting for about 49 percent or P16.33 billion, and nine percent or P2.96 billion, respectively, of the production value in 2010.

These commodities turned in double digit gains in 2010.

The MBG attributed the impressive growth in mineral production in 2010 to an unparalleled increase in the prices of metals in the international market.

Prices of major metals like gold, silver, copper and nickel cruised smoothly in 2010.

Gold alone achieved supreme heights never before seen in the history of the commodity, from $857.08 per troy ounce in January 2009 to $1,391.40 per troy ounce in December 2010; and nickel price from $6.56 per pound in 2009 to $9.82 per pound in 2010, an increase of almost 50 percent.