Metal production slides 6% to P22.5 billion in Q1

MANILA, Philippines — Metal production in the country started weak in the first quarter as it went down six percent to P22.5 billion amid the shortfall in output of mining companies, the Mines and Geosciences Bureau (MGB) said.

Based on latest data obtained by The STAR, the aggregate value of metal production from January to March 2018 went down from the P24 billion recorded in 2017.

Gold production accounted for 47 percent of total production value with aggregate earnings of P10.5 billion, down 14 percent, as output dropped to 5,279 kilograms.

Gold metal price accelerated to $1,218.54 per troy ounce from $1,329.89 per troy once year-on-year.

Direct shipping nickel ore and mixed nickel-cobalt sulfides took the second spot with P6.5 billion, down three percent year-on-year.

Nickel price increased to $5.83 per pound from $4.58 per pound amid growth in global demand, coupled with production disruptions among major producers due to weather or policy-related reasons.

“The slow start of mine production of direct-shipping nickel ore was attributed to the wet weather condition that usually prevail in the areas of Dinagat, Agusan and Surigao provinces during the early part of the year,” MGB said.

Revenues from copper production, which comprise 23 percent of total metal production value, went up 10 percent to P5.3 billion despite lower volume of 69,839 dry MT.

The growth was attributed to higher copper price during the period from $2.60 per pound to $3.12 per pound.

The production value of silver, however, decreased 18 percent to P211 million following lower production.

The remaining one percent of total metallic production, or P270 million, came from the combined value of silver, iron ore and chromite.

The Masbate Gold Project of Filminera Mining Corp. and Didipio Gold Project of OceanaGold Philippines Inc. in Nueva Vizcaya were the country’s major gold producers in the first quarter.

Out of the 30 nickel mines in the country, Agata Mining Ventures Inc. topped the list with 486,087 metric tons output.

Twelve nickel mines, however, reported zero production due to some mines being under maintenance and care status or suspended operations due to environment-related issues.

Meanwhile, Carmen Copper Corp. in Cebu dominated copper production during the period.

To date, the country hosts 50 operating metallic mines consisting of 30 nickel, eight gold with silver as co-product, four copper with gold and silver as co-products, three chromite and five iron mines.

These are in addition to the numerous small-scale gold mining operations across the country.

Environment Secretary Roy Cimatu has been challenging the mining industry to come up with a measurable, concrete and definite action plan to improve the sector.