METALLIC MINERAL output in the first quarter rose 14.11% by value to P28.91 billion in the due to improved metal prices, according to the Mines and Geosciences Bureau (MGB).
The MGB said in a report that nickel ore and other nickel by-products accounted for 47.12% or P13.62 billion of the total, followed by gold at 40.49% or P11.71 billion, and copper at 11.51% or P3.33 billion. Silver, chromite, and iron ore combined for less than 1% or P254.92 million.
Gold prices during the period increased 14% from a year earlier to $1,801.86 per troy ounce, while silver prices rose 55% to $26.29 per troy ounce.
Copper prices improved 50% to $8,478.58 per ton while nickel rose 38% to $17,625.46 per ton.
“Despite the disruptions in mining operations brought about by the global pandemic, the mining sector still managed to pull off a stellar performance because of the better metal prices which were way higher than their pre-pandemic levels,” the MGB said.
According to the MGB, nickel ore posted a 48% increase in production volume to 3.57 million dry metric tons (DMT). By value, ore rose 106% to P5.92 billion.
“Out of the 30 nickel projects, only 14 reported production. The remaining 16 (had) zero production due to unfavorable weather conditions/intermittent rains; under care/maintenance status; and suspended operations,” the MGB said.
“In terms of production distribution, Mimaropa (Mindoro, Marinduque, Romblon, and Palawan) accounted for 48% or 1,718,374 DMT followed by CARAGA with 40% or 1,426,557 DMT; and Central Luzon 12% or 425,443 DMT,” it added.
Mixed nickel-cobalt sulfide production volume fell 1% to 20,239 DMT with value also falling 1% to P7.61 billion.
Gold production by volume rose 3% to 4,212 kilograms.
Philippines Gold Processing and Refining Corp. was the top producer with 1,789 kilograms, followed by FCF Minerals at 577 kilograms, and Mindanao Mineral Processing and Refining Corp. 571 kilograms.
The MGB said copper production volume fell 33% to 44,050 DMT.
Carmen Copper Corp. accounted for 70% or 28,874 DMT of total production, while Philex Mining Corp. had 30% or 15,176 DMT.
Silver production during the first quarter fell 12% to 5,603 kilograms.
The MGB said mining operations are still hampered by lockdowns, reduced manpower, and disrupted operating hours due to the pandemic.
“This will naturally restrict or limit economic activity in the area thereby affecting the course of mining operations,” MGB said.
The MGB said the recently-issued Executive Order (EO) No. 130, which amended Section 4 of EO 79 and lifted the ban on new mineral agreements, will attract and restore investor confidence in the mining industry.
“With the anticipated increased investment, higher revenue collection and generation of employment both direct and indirect in mining will certainly follow. Also, to be highlighted is the economic activities that will be created in far-flung areas where mining projects will operate,” the MGB said.
Asked to comment, Chamber of Mines of the Philippines Executive Director Ronald S. Recidoro said the group expects the metal prices to improve further.
Mr. Recidoro said in a mobile phone message that the global economy is starting to pick up and demand for base metals such as iron, nickel, and copper is increasing.
“The demand for nickel and cobalt spurred by the battery and electric vehicle sector will also continue to drive prices,” Mr. Recidoro said.
“The Gold price is also beginning to pick up as a safe haven asset with everyone watching out for inflation brought about by COVID-19 relief spending,” he added. — Revin Mikhael D. Ochave