Philippine metallic mineral production up 30%

MANILA, Philippines — The value of the country’s metallic output expanded by nearly 30 percent in the three quarters ending September, owing to higher output and prices of nickel and gold, the Mines and Geosciences Bureau (MGB) said.

Metallic mineral production remained upbeat as its value rose by 29.21 percent to P175.61 billion.

“The important factors for this development were the bullish metal prices of nickel ore and gold, paired with the increased mine output of gold, silver, chromite and iron ore during the period,” the MGB said.

Prices of nickel ore went up by 47.2 percent to $11.97 per pound.

MGB said the nine-month price of nickel was still above the 2018-2021 levels, with prices peaking in March at $17.14 per pound while the third quarter average settled at $10.02 per pound.

China is the Philippines’ major trading partner for nickel ore.

Gold also saw a 1.36 percent price increase from $1,801.97 per troy ounce to $1,826.47 year-on-year, based on the Bangko Sentral Ng Pilipinas (BSP) price bulletin. Its nine-month average went up from $1,801.97 per troy ounce to $1,826.47, even as its third quarter average price was lower year-on-year.

On the other hand, both silver and copper prices dipped by 14.84 percent and 0.64 percent, respectively.

MGB data showed nickel ore, together with its nickel by-products – mixed nickel-cobalt sulfide (MNCS) and scandium oxalate – continued to have the largest share at 49.4 percent, contributing P86.94 billion.

Gold came in second, cornering 38.32 percent and raking in P67.45 billion.

Copper took the third spot, accounting for 10.79 percent with a value of P18.99 billion.

The collective value of silver, chromite and iron ore contributed about 1.49 percent of the total at P2.63 billion – the first time that the joint values of these three commodities exceeded the P1-billion mark.

MGB said a big factor was the increased output of TVI Resource Development (Phils) Inc.’s Balabag gold-silver project from 1,170 kilograms with an estimated value of P41.26 million to 19,088 kilograms with an estimated value of P736.76 million.

“Overall, there was a remarkable increase in the value of mineral commodities year-on- year,” the agency said.

In terms of regional contribution, the MGB data showed the Caraga region cornered 37.26 percent of the total production valued at P65.57 billion.

It was followed by Mimaropa with 11.19 percent at P19.69 billion and Cagayan Valley with 10.58 percent at P18.62 billion.

In terms of the number of operating metallic mines in a region, the MGB data showed Caraga remained as the country’s mining hub, with two gold mines, one chromite mine, 18 nickel mines, one hydrometallurgical processing plant and a gold processing plant.

For the period, BSP gold purchases amounted to about P16.36 billion, with five gold buying stations strategically located across the country.

Meanwhile, nickel direct shipping ore declined by 17 percent in volume from 27,238,874 dry metric tons to 22,525,878 DMT. However, it recorded a two-percent increase in terms of value from P45.97 billion to P46.82 billion.

The government plans to tap the potential of the mining sector to push for the country’s economic growth through the declaration of more Minahang Bayan.

“The declaration of [Minahang Bayan] is the government’s strategy to first, effect an orderly, systematic, and ecologically balanced administration and disposition of small-scale mining areas,” it said.

The government is also strengthening its regulation over MBs enhance growth and productivity while ensuring environmental protection, as well as provide technical, financial, and marketing assistance and ensure efficient collection of government revenues.

As of August, 53 Minahang Bayans have been declared – 17 in Luzon, three in Visayas, and 33 in Mindanao.

For metallic minerals, commodities will be limited only to gold, silver, and chromite and shall have a term of two years, renewable but not to exceed a total term of six years.

The bureau also cited the Department of Finance’s declaration that the extractive sector is a key driver for the country’s long- term economic expansion.

It said the Philippines is a highly mineralized country, with nine million hectares out the 30-million-hectare total land area identified as having high mineral potential.

Of the nine million hectares, only about 2.54 percent or 763,377 hectares are covered by mining tenements as of June.

“This only pertains to the permits issued by the national government and does not include the permits issued by the local government,” the MGB said.

In terms of pricing, the agency said metal prices are expected to go down in the fourth quarter up to next year, “reflective of weaker global growth and concerns over a slowdown in China’s demand due to its zero COVID policy and slowdown of its real estate sector.”

“But still, experts went on to say that prices are expected to remain higher than their average over the past five years. Which is a positive thing for our local mining industry,” MGB said.