Metallic mineral production value grew 24.5 percent to P68.63 billion in the first half of 2021 from P55.13 billion in the same period in 2020 driven by higher metal prices, data from the Mines and Geosciences Bureau (MGB) showed.
MGB is bullish on the prospects of the mining sector.
It said apart from good prices, recent developments in the local minerals industry are expected to lift the overall performance of the industry in the coming years especially with the reopening of the Didipio copper-gold project of OceanaGold Philippines Inc. in Nueva Vizcaya and the lifting of the moratorium for the government to enter into new mineral agreements.
MGB said of the 30 million total land area of the Philippines, only about 2.55 percent or 763,899.75 hectares is covered by mining tenements and of the 9 million hectares identified as having high mineral potential, only 8.49 percent is covered by mining tenements.
MGB said 91.51 percent of the land area identified with high mineral potential remains untapped.
In terms of contribution to the metallic production value, nickel and nickel products accounted for 53.44 percent to P36.68 billion from the previous P25.17 billion, a 36 percent increase.
Nickel ore production volume and value went up by 39 percent and 98 percent, respectively, to 151,646 metric tons (MT) with an estimated value of P21.42 billion. First half 2020 reflected a volume of 109,471 metric tons (MT) with an estimated value of P10.79 billion
Prices of nickel hit 17,490.15 per MT from $12,473.17 per MT, a growth of 40 percent from a year ago.
MGB said nickel production was tempered as only 19 of the 28 listed operating nickel projects reported production for the period.
Gold contributed 34.84 percent in the metallic mine value of the country for the period.
Production volume and value of the yellow metal rose 3 percent and 8 percent, respectively to 8,545 kilograms (kgs) with an estimated value of P23.91 billions from last year’s 8,257 kgs. with an estimated value of P22.15 billion
The price of gold surged by 10 percent to $1,808.59 per troy ounce against last year’s average price of $1,647.59 per troy ounce.
The performance of copper for the period was diverse with production volume going down by 24 percent from 31,030 MT to 23,557 MT. The production value, however, grew by 4 percent from P7.19 billion to P7.46 billion, contributing a total of 10.87 percent in the total metallic mine value of the country.
Price of copper during the period increased by 65 percent to $9,094.61 per MT from $5,496.36 per MT due to supply disruptions in major producing countries like Peru and Chile.
The collective values of silver, iron ore and chromite were less than 1 percent of the total metallic mine value or P580 million.
Silver production for the period declined by 6 percent from 11,793 kg to 11,069 kg but production value jumped by 46 percent to P450 million from P310 million as its ore price increased by 59 percent. -J. Macapagal
