New projects to boost RP’s metal production

The Philippines will be extracting more precious and base metals this year and the next with the start of production at new mining projects, a senior official said yesterday.

Benjamin de Vera, head of mineral economics at the Mines and Geosciences Bureau, said the start of production of the Rapu-rapu polymetallic project this year signalled the revival of zinc production in the country after 25 years.

Strong demand from booming economies such as China and India has taken base metal prices to multi-year highs, sending mining firms scrambling to invest in new capacity.

Australia’s Lafayette Mining Ltd. has a 74-percent stake in Rapu-rapu, with the rest jointly held by LG International Co. Ltd. and KORES, the South Korean government’s resources investment arm.

De Vera said he expects the country’s gold output this year to rise 14.6 percent to 40,629 kilogram (kg) due to the opening of Rapu-rapu and a projected increase in production of the Teresa project of Lepanto Consolidated Mining Co.

Silver output is also expected to nearly triple to 23,824 kg this year from 9,315 kg last year.

Next year, gold output could further rise 4.4 percent to 42,427 kg with the projected rise in the output of Rapu-rapu while silver output could rise by 78 percent to 42,512 kg.

Copper output this year is likely to rise 25 percent to 20,000 tons. This could further jump to 30,500 tons in 2006 because Rapu-rapu is expected to produce 10,500 tons of copper, up from 4,000 tons this year. Overall, the Philippines produced about 16,000 tons of copper last year.

Rapu-rapu, the first foreign-funded new mine in the country since 1968, is also expected to produce 3,900 tons of zinc this year and 14,500 tons in 2006.

The start of the operation of a Japanese-owned nickel plant in Palawan island would also boost the country’s production of nickel, which is used to add strength and sheen to stainless steel, De Vera said.

He said that based on the feasibility study submitted by Coral Bay, its plant will produce the equivalent of 2,000 tons of nickel metal this year and 150 tons of cobalt.

This would be gradually increased to 8,300 tons of nickel in 2006 and 10,000 tons in 2007. The firm also expected to produce 620 tons of cobalt next year and 750 tons in 2007.

The Philippines produced about 17,000 tons of nickel last year.