Philippine metallic production up 22.8% in Q1

MANILA, Philippines — The value of the country’s metallic mineral production rose by nearly 23 percent in the first quarter, largely due to higher production of most metals and favorable gold prices.

Latest data from the Mines and Geosciences Bureau (MGB) showed metal production increased by 22.83 percent to P58.92 billion in the first three months of the year. Gold was the top contributor to the total production value with 47.08 percent, equivalent to P27.74 billion.

Nickel took the second spot with 40.48 percent valued at P23.85 billion, followed by copper with 11.06 percent or P6.52 billion.

Meanwhile, the consolidated value of silver, chromite, and iron ore accounted for about 1.38 percent or P0.81 billion of the total production value, the MGB data showed.

In terms of prices, gold prices continued their steady rise to P$1,889.05 per troy ounce from P1,874.91 per troy ounce.

On the other hand, nickel, copper, and silver prices declined during the quarter, MGB said.

Nickel prices declined to $11.78 per pound from $12.74 per pound while copper fell to $4.05 per pound from $4.53 per pound. Silver prices were down to $22.94 per troy ounce from $23.95 per troy ounce.

While the prices of these metals went down year-on-year, MGB said these price levels remained higher than pre-pandemic levels.

“If we go beyond the review period by looking closely at the second half of 2022, the prices during the first quarter of 2023 were still at a higher level and prices are still way above their pre-pandemic levels,” the bureau said.

In terms of production, gold saw an 17 percent jump in volume to 8,327 kilograms from 1,223 kilograms.

The MGB said Philippines Gold Processing and Refining Corp. in Masbate was the top gold producer during the quarter with 1,442 kilograms valued at P4.8 billion followed by OceanaGold Phils Inc. (OGPI) with 929 kilograms valued at P3.1 billion.

“The re-entry of Greenstone Resources Corporation into the production scene this year has also boosted production. Said company has been under care and maintenance status since 2018,” the bureau said, noting the company produced 79 kilograms of gold valued at P0.26 billion.

Nickel ore production also rose to 3.997 million dry metric tons (DMT).

The MGB said only 13 out of 33 nickel operating mines recorded production during the quarter.

Rio Tuba Nickel Mining Corp. topped the list with 1.205 million dry metric tons in production, followed by Eramen Mineral Inc. with 587,565 dry metric tons.

The remaining 20 mines had no production mainly due to weather conditions or under care & maintenance, MGB said.

On the other hand, copper output slipped to 64,730 dry metric tons from 64,841 dry metric tons from the country’s three producers, namely Carmen Copper Corp. (CCC) in Cebu, OceanaGold Phils Inc. (OGPI) in Nueva Vizcaya, and Philex Mining Corp. (PMC) in Benguet.

“In terms of distribution, CCC accounted for 55 percent or 35,648 dry metric tons, OGPI for 25 percent or 16,299 dry metric tons and PMC contributed 20 percent or 12,783 dry metric tons,” MGB said.

White metals saw a lackluster performance with volume falling to 11,327 kilograms from 12,657 kilograms.

Government data showed the Balabag Gold-Silver Project of TVI Resource Development (Phils) Inc. in Zamboanga del Sur continued to outperform the others, accounting for almost 37 percent or 4,221 kilograms valued at P0.16 billion of the country’s total silver production.

Chromite production rose by 14 percent to 20,496 dry metric tons from 18,036 dry metric tons while iron ore output remained sluggish, declining by 24 percent to 33,497 dry metric tons.

The MGB said it remains upbeat for the minerals sector due to growing demand for nickel and gold, hinged on the lifting of China’s zero COVID-19 policy in December last year.

“The bulk of our nickel ore has always been exported to China. During the last two years, almost 97 percent of our nickel direct shipping ore exports went to China and the rest to Japan and South Korea,” it said.

“On gold, the diverse use of these precious metals in jewelry, technology, and investment assets as a haven during economic slowdowns/crises is what placed it in an advantageous position,” the MGB said.