Metal production improves 4% in H1

MANILA, Philippines - Metal production inched up four percent to P51 billion in the first semester owing to the continued improvement of prices in the world market, the Mines and Geosciences Bureau (MGB) said.

The aggregate value of metal production for January to June this year was higher than the P49 billion recorded in the same period last year.

“The upside during the period, despite the listless mine output of the metals with the exemption of MNCS (mixed nickel-cobalt sulfide), was the more favorable metal prices,” “ MGB said.

Gold production accounted for 45 percent of the total production value with aggregate earnings of P22.8 billion, almost the same value as last year.

Gold metal price was on the upswing in the first half, hitting $1,238.46 per troy ounce from $1,217.85 per troy ounce a year ago.

“Prices were primarily driven by stronger demand from China’s infrastructure and manufacturing sectors. This was reinforced by the supply disruptions from the world’s key copper and nickel mines,” the MGB said.

Filminera Mining Corp. in Bicol and Oceana Gold Philippines Inc. in Cagayan were the country’s major gold producers during the period, accounting for more than half of total gold production.

Direct shipping nickel ore and mixed nickel-cobalt sulfides took the second spot with P18.45 billion, up 23 percent year on year.

Nickel direct shipping ore suffered a 24 percent setback to 8.64 million dry metric tons (MT) while copper was down by 22 percent to 138, 689 dry MT.

“The lackluster performance of nickel was due to the suspension of some mining operations, zero production following maintenance and care status by a number of nickel mines, and unfavorable weather condition during the period,” MGB said.

According to MGB, 11 nickel mining projects reported no production during the period.

Nickel price increased to $4.39 per pound from $3.92 per pound, while copper price was also up from $2.13 per pound to $2.58 per pound.

Revenues from copper production, which comprises 18 percent of total metal production value, went down by one percent to P8.9 billion.

The production value of silver increased six percent to P459 million helped an increase in prices from $15.78 per troy ounce to $17.34 per troy ounce this year.

Precious metals gold and silver also reported a five percent  and seven percent decline, respectively.

The remaining one percent of total metallic production, or P510 million, came from the combined value of silver, iron ore and chromite.