The country’s metallic mineral production value jumped 22.83 percent in the first quarter of the year to P58.92 billion from P47.97 billion in the same period in 2022, according to the Mines and Geosciences Bureau (MGB).
MGB attributed the growth to higher metal prices and increased production of gold, nickel direct shipping ore as well as chromite.
In a report released by MGB, gold had the biggest contribution to the total production value for the period at P27.74 billion, equivalent to 47.08 percent, followed by the collective values of direct shipping nickel ore together with its nickel products, mixed nickel-cobalt sulfide and scandium oxalate at P23.85 billion or 40.48 percent.
Copper accounted for P6.52 billion or 11.06 percent, while the shared output value of silver, chromite and iron ore amounted to P810 million or 1.38 percent.
In terms of production for the period, gold improved by 17 percent to 8,327 kilograms (kg) from 7,103 kg; nickel ore increased by 5.4 percent to 3,997,829 dry metric tons (dmt) from 3,792,676 dmt; and chromite went up by 13.64 percent to 20,496 dmt from 18,036 dmt.
However, copper, silver and iron ore posted production declines for the period.
Copper production dipped by 0.17 percent to 64,730 dmt from 64,841 dmt; silver slid by 11 percent to 11,327 kg from 12,657 kg; and iron ore dropped by 24 percent to 33,497 dmt from 44,133 dmt.
Meanwhile, MGB said for the first quarter of 2023, only gold logged an increase in average price — up by 0.75 percent to $1,889.05 per troy ounce from $1,874.91 per troy ounce.
Nickel, copper and silver prices all went down during the period in review.
Average nickel prices dropped by 7.5 percent to $11.78 per pound from $12.74 per pound; copper prices tumbled by 10.6 percent to $4.05 per pound from $4.53 per pound; and silver fell by 4.22 percent to $22.94 per troy ounce from $23.95 per troy ounce.
MGB said compared to the second half of 2022, “we’re still at a higher level and prices are still way above their pre-pandemic levels.”
Outlook for the local minerals sector “remains optimistic” with the expected growth in the demand for nickel and gold, it added.
“This expectation will be driven by the lifting of China’s zero COVID-19 policy last December which imposed severe lockdowns in early 2022. The bulk of our nickel ore has always been exported to China. During the last two years, almost 97 percent of our nickel direct shipping ore exports went to China and the rest to Japan and South Korea,” MGB added.
MGB also said gold’s diverse use in jewelry, technology and investment assets during economic slowdowns places the metal in an advantageous position compared to other metals with demands that are exposed to the highs and lows of world economic activities, such as in the sectors of manufacturing and construction, among others.
The agency said major trading partners of the Philippines for its gold include Switzerland, Hong Kong, India and China.
