Metal output up 24% in H1

MANILA, Philippines — The country’s metal production continued its growth in the first half of the year, mainly driven by higher metal prices, the Mines and Geosciences Bureau (MGB) reported.

The January to June figure is 24.5 percent higher than the P55.13  billion metallic mineral production value posted in the same period in  2020.

“The telling factor for this sterling performance was the continued strong metal prices during the period,”the MGB said.

Prices of base metals, copper, and nickel grew by 65 percent and 40 percent, respectively. Prices of precious metals such as gold, and silver also went up by 10 percent and 59 percent, respectively.

Nickel ore and other nickel by-products accounted for more than half or 53 percent of the total metal output during the period, as it raked in P36.68 billion, higher than the P25.17 billion registered in the first half of last year.

MGB data showed that nickel direct shipping ore accounted for 58 percent at P21.42 billion while mixed nickel-cobalt sulfide had a 41 percent share at P15.07 billion.

Nickel ore continued to enjoy the upbeat price of nickel as production surged 39 percent to 151,646 metric tons (MT).

The average price of nickel  increased by around $17,490.15 per ton from $12,473.17 per ton a year ago.

Gold accounted for 34.84 percent of the total output value at P23.91 billion, up eight percent.

Copper had a 10.87 percent share at P7.46 billion, four percent higher than the P7.19 billion recorded in the same period last year.

In addition, the collective values of silver, iron ore, and chromite were less than one percent of the total metal output at P0.58 billion.

MGB data showed that the total production volume of gold rose  eight percent to 8,545 kilos  while copper production dropped  24 percent to 23,557 MT.

The average price of gold grew to $1,808.59 per troy ounce.

Similarly, average copper prices increased to $9,094.61 per ton from $5,496.36 per ton.

Silver production volume declined by six percent to 11,069 kilograms.

“More than the robust metal price, recent developments in the local minerals industry are anticipated to be game-changers in the overall performance of the industry in the coming years not only in terms of mine ore production but also in its economic contributions,”the MGB said.

Among these latest developments include the re-entry of Didipio copper-gold project of OceanaGold (Phils) Inc. (OGPI) in Nueva Vizcaya to the production stream; and the issuance of Executive Order No. 130 and together with its implementing rules and regulations.

The agency said that the renewal of the application of OGPI is projected to boost or augment local copper, gold, and silver mine production.

“It is worth noting that from 2014-2018, the annual production average of the project for gold was 4,191 kilograms with an estimated value of PP7.95 billion while for copper about 20,493 MT with an estimated value of P5.83 billion, “the MGB said.

Moreover, the MGB stressed that the COVID-19 pandemic remains a factor that may affect the growth of the mining industry moving forward.

“Reduced economic activities would mean the demand for industrial metals like copper, iron ore, nickel, and among others being utilized by the steel, construction and other downstream industries to decline,”the MGB said.

Mineral analysts are also projecting a demand cutback from China for the said metals.