Despite the drop in metal prices, the growth of the country’s mining sector remained robust, posting a 22-percent increase in the total metallic production value in the first half of 2014.
The Mines and Geosciences Bureau (MGB) of the Department of Environment and Natural Resources reported that metallic mineral production from January to June totaled P57.27 billion, higher by P10.42 billion compared to the recorded metallic production value of P46.84 billion for the same period last year.
“The good showing of the major copper-ore producers—the Didipio Copper-Gold Project of Oceanagold Philippines Inc. and the Padcal Copper-Gold Project of Philex Mining Corp.—was the main factor for the upswing,” MGB Director Leo L. Jasareno said.
According to data provided by the MGB, Didipio’s gold mine in Nueva Vizcaya had an output of P6.07 billion, while Philex produced P5.53 billion worth of minerals.
This is the fourth consecutive quarter that the metallic sector enjoyed positive growth, despite the drop in the prices of major metals.
Among the major minerals, only nickel displayed an upbeat price movement, hovering from $6.38 to $8.74 per pound in the first half.
The average price of gold from January to June dropped by 15.31 percent, from $1,524.52 to $1,291.05 per troy ounce
(oz t). Similarly, the price of silver dropped from $26.64 to $20.05 per oz t. Price of copper also dropped from $3.39 to $3.11 per pound.
Jasareno said the High Pressure Acid Leach (HPAL) Plant of Taganito Mining Corp. in Claver, Surigao del Norte, commenced operation in October 2013, and it already chipped in P4.04 billion in the first-half revenues.
He added that Taganito’s contribution cushioned the effects of the closure of the Canatuan Mining Project of TVI Resource Development (Phils.) Inc. (TVI) and the Rapu-Rapu Polymetallic Project of Rapu-Rapu Minerals Inc. (RRMI).
In terms of percentage contribution to the total production value, direct shipping of nickel ore and mixed-nickel sulfides was the prime mover, accounting for 54.19 percent, or P31.03 billion. Gold took the second spot, with 26.69 percent, or P15.28 billion; followed by copper, with 17.72 percent, or P10.15 billion. The remaining 1.40 percent, or P0.80 billion, was shared by silver, zinc, chromite and iron.
In terms of growth rates in production value, nickel (direct-shipping ore and mixed sulphides) has the highest, with 59 percent, from P19.52 billion in 2013 to P31.03 billion in 2014 year on year, a difference of P11.52 billion.
Zinc posted the biggest loss, from P0.41 billion to zero production during the review period. This is due to the closure of the mining operations of TVI and RRMI. Both mines produced copper and zinc ores.∏
In terms of peso value, the other top producers are Coral Bay HPAL Project of Coral Bay Nickel Corp., producing an estimated value of P5.49 billion; Toledo Copper Project of Carmen Copper Corp., with P4.98 billion; and Masbate Gold Projecct of Philippine Gold Processing and Refining Corp., with P4.61 billion.