Metal output lackluster in Q1

MANILA, Philippines — The country’s metallic mineral output declined in the first quarter, as the industry suffered cutbacks in metal prices and slowdown in mine production, according to the Mines and Geosciences Bureau (MGB).

Latest MGB data showed that metal production in the first three months of the year fell by 12.75 percent year-on-year to P51.814 billion.

The production of key metals such as gold, silver and nickel all declined during the reference period.

Gold output, which accounted for half of the total metallic production, fell by 14.35 percent on an annual basis to 7,178 kilograms (kg). The value of gold production decreased by 3.55 percent to P26.95 billion from last year’s P27.908 billion.

Nonetheless, MGB remained optimistic that global gold prices would remain elevated this year due to ongoing geopolitical tensions in the Middle East, thus, buoying the value of the country’s metal output.

“With the ongoing geopolitical tensions in the Middle East, gold prices are expected to remain upbeat during the rest of the year,” the attached agency of the Department of Environment and Natural Resources said.

“We witnessed the yellow metal prices breaking the $2,000 per troy ounce mark. Such a run began in December 2023 with $2,035.91 per troy ounce and was sustained during the review period,” it added.

The average price of gold per troy ounce in the first quarter stood at $2,070.05 versus last year’s $1,889.05 average quotation, according to the MGB.

MGB data also showed that nickel ore production declined by 16.6 percent year-on-year to 3.814 million dry metric tons (DMT) from 4.573 million DMT. Likewise, the value of the nickel output plunged by 36 percent to P7.631 billion from last year’s P11.844 billion.

The government agency noted that 22 nickel mines did not report any production in the first quarter due to unfavorable weather conditions, being under off-season and maintenance as well as low nickel prices. MGB noted that nickel mining is “vulnerable” to wet weather conditions since it is a surface mining.

“In the region of Caraga, which is hailed as the nickel capital of the country, more rain was felt during the first and fourth quarters of the year, with January being the wettest month, thus affecting mining operations,” the MGB said.

Meanwhile, the country’s copper production grew by 4.4 percent to 67,582 MT from 64,730 MT recorded volume in the first quarter of last year. However, the value of the copper production declined by 3.25 percent year-on-year to P6.297 billion due to low prevailing global prices for the metal.

“Again, the lower copper price during the period spelled the difference from $4.05 per pound to $3.83 per pound year-on-year,” the MGB said.

The country’s silver production in the first quarter fell by 6.4 percent to 10,603 kg. However, the value of silver output inched up to P452.725 million from P449.231 million.