The country’s nickel output is expected to sustain its growth and raise the country’s annual metallic minerals output this year, Director Leo Jasareno of the Mines and Geosciences Bureau (MGB) said.
Jasareno said the upbeat performance of nickel last year due to the entry of new players, increased mine output and growing demand abroad, is expected to continue this year, as price of nickel in the world market is expected to remain favorable until the end of 2015.
“A slight improvement is expected this year,” Jasareno said.
Metal prices, except nickel, were less attractive last year. Gold, silver and red metal copper recorded negative movements, with the price of gold going down by 10.35 percent from $1,416.10 per troy ounce in 2013 to $1,269.57 troy ounce last year. Copper price also went down by 7.26 percent, from $3.31 per pound to $3.06 per pound during the same period.
Nickel, on the other hand, recorded a slight increase of 11.61 percent in 2014 from its 2013 level—or from $6.78 per pound to $7.56 per pound.
“Looking ahead, 2015 nickel prices are not anticipated to revert back to the double-digit levels set in 2011 given the sufficient inventory, new supplies coming on stream and weaker demand in the market, particularly involving China,” Jasareno said.
China was the prime destination of the country’s nickel ore followed by Japan. The MGB came up with its 2014 year-end review, briskly looking forward to a strong performance of the country’s nickel mines. There are now 27 nickel mines operating in the country. This is more than half of the 47 operating metallic mineral mines that contribute to the country’s annual metal output.
According to Jasareno, the Libjo Nickel Laterite Mining Project of Libjo Mining Corp. in the Province of Dinagat Island with 10 years mine life, and the Agata North Nickel Lateritic Project of TVI Resources Development Inc. in Agusan del Norte, with a mine life of 11 years, are expected to boost nickel output this year. “These new nickel mining projects are expected to boost the 2015 nickel production of the country, with the expected mine output of Libjo and Agata to be about 714,000 dry metric tons and 1,360,000 dry metric tons, respectively,” Jasareno said.
Buoyed by the nickel’s strong performance, the country’s total metallic minerals output rose from P99.38 billion in 2013 to P137.53 billion in 2014, representing a P38.15-billion, or 38-percent, increase.
Nickel direct shipping ore and mixed nickel-cobalt sulfide accounted for 58 percent, or P79.84 billion, of the total production value, with gold in far second with 23.97 percent, or P32.97 billion. Copper followed with 16.55 percent, or P22.76 billion. Silver, chromite and iron attributed for the remaining 1.42 percent, or P1.96 billion.
The country’s gold output as reported by annual purchases of the Bangko Sentral ng Pilipinas (BSP) continues to take the back seat over the past three years, with small-scale miners selling their gold to the black market to avoid taxes. The government is pinning its hope on a new guideline to regulate small-scale mining, limiting gold mining activities, including processing, within declared “Minahang Bayan” with a designated BSP gold-buying station.
Copper production, on the other hand, is expected to slow down. The operation of two of the five copper mines stopped in November 2013 and January 2014.
The open pit mining operation of Rapu-Rapu Minerals Inc. (RRMI) at Ungay-Malobago, in Rapu-Rapu, Albay, together with the mineral processing operations of Rapu-Rapu Processing Inc. in the same locality, ended in November 2013. RRMI is currently implementing its approved Final Mine Rehabilitation/Decommissioning Plan, leading to the conversion of the mined out area into an ecotourism site.
On the other hand, the Canatuan Mining Project of TVI Resource Development (Phils.) Inc. in Zamboanga del Norte ended its mining operation in January 2014 after its mineral reserve was fully mined. The company is now eyeing an expansion project adjacent to its mined-out area.