Metal output down 14% in H1

MANILA, Philippines — The country’s metallic production was not exempted from the brunt of the pandemic as output dropped by 14 percent to P54 billion in the first semester as the limited movement of supplies and workforce affected the performance of the sector.

Latest data from the Mines and Geosciences Bureau (MGB) showed that aggregate value of metal production from January to June was 14.37 percent lower at P53.88 billion than the P62.92 billion recorded in 2019.

“The performance of the metallic sector was seriously dictated by the current happenings worldwide, including COVID-19 pandemic, the slowdown in economic activities, world metal prices, and limited and hampered mining operations,” the bureau said.

Since March, there has been disruption in the operations of mining projects throughout the country amid the pandemic where movements of people and supplies were restricted.

Income from direct shipping nickel ore and mixed nickel-cobalt sulfides amounted to P24.13 billion, down 13 percent year-on-year, even as the price of nickel accelerated to $12,473.17 per metric ton from $12,316.06 per MT in 2019.

The nickel group accounted for 45 percent of the total metallic production value in the first semester.

Further, gold production took the second spot and accounted for 42 percent of the total production value with aggregate earnings of P22.12 billion, down 10 percent as output decreased to 8,246 kilograms.

Gold metal price accelerated to $1,647.44 per troy ounce from $1,307.36 per troy ounce year-on-year. Market analysts said gold prices would continue to go up given the current world economic situation.

The mining bureau said the more upbeat gold price during the period resulted in the lesser decline in value vis-à-vis the decline in volume.

Revenues from copper production, which comprises 14 percent of total metal production value, went down by 27 percent to P7.19 billion following a 17 percent decline in output at 31,030 dry metric tons

The decline was attributed to the lackluster copper price during the period which was 11 percent lower at $5,496.36 per MT.

The production value of silver also decreased by 26 percent to P310 million amid lower production at 30 percent to 11,764 kilos.

Moreover, the Philippine Gold Processing and Refining Corp. was the country’s major gold producer during the period with 2,909 kilos valued at P7.72 billion, accounting for 35 percent of the country’s total gold mine output.

The Toledo Copper Project of Carmen Copper Corp. in Cebu dominated the copper production during the period with 79 percent share of the total output.

MGB said the absence of OceanaGold in the production-stream, with no new players to fill in the void, resulted in the sluggish performance of copper.

Further, the mining industry has taken an active role in addressing the pandemic after MGB authorized the re-alignment of unutilized funds of the Social Development and Management Program of the companies to support host communities.

SDMP is a five-year plan geared toward the development of a responsible, self-reliant, and resource-based community capable of developing, implementing, and managing development programs, projects and activities.

As of July 8, a total of P402 million was spent by mining companies sourced from the SDMP for the procurement of PPEs, medical supplies, goods and food supplies in favor of the communities and the frontliners.

To date, the country hosts 50 operating metallic mines consisting of 31 nickel, 10 gold with silver as co-product, three copper with gold and silver as co-products, three chromite, three iron, and two nickel plants, two gold plants and one copper smelter.

These are in addition to the numerous small-scale gold mining operations across the country.