Mineral production surges 59% to P39.42B in 1st half

The country’s metallic minerals production value surged by 59 percent in the first half of the year to P39.42 billion from P24.83 billion in the same period in 2006, the Department of Environment and Natural Resources (DENR) said.

DENR Secretary Lito Atienza Jr. described the substantial increase as a“stunning performance of the metal sector” as he anticipated that this improvement, coupled with the expected advancement of more mining activities and projects, would further boost government projections of “a significant turnaround” this year in terms of investment inflows and production value of the country’s minerals.

Atienza also said additional projects might come on stream to take advantage of spiraling global metal prices.

“We are making good progress in terms of investments coming in from the priority projects, which as of the first half have already reached $879 million. Production value has likewise been on the uptrend, and this year we expect to see further growth even in terms of volume because of new and expanded projects,” the DENR chief noted.

The government’s initial projection of the country’s metal production value was about $1.35 billion or roughly about P62 billion this year. The government has likewise placed investment inflows target to breach the $1-billion mark by the end of the year.

According to Horacio Ramos, director of the DENR’s Mines and Geosciences Bureau (MGB), gold output accounted for P19.3 billion of the total metal production, followed by nickel with P15.46 billion and copper with P3.67 billion. The combined contribution of silver, zinc and chromite producers amounted to P970.38 million 

Ramos explained that the continuing increase in metal prices in the world market remained the primary reason for the growth in the country’s metal production value.

He likewise noted that the entry of Berong Nickel Corp. in Quezon, Palawan to the production stream and the resumption in the operation of the government’s flagship project Rapu-Rapu Processing Inc. in Albay also made a great impact on the “sterling performance” of the metallic sector in the first six months of 2007.

DENR data showed the average metal prices in the international market during the first six months of the year remained in the upper scale.

It said that nickel is taking the lead, jumping up to as high as 157.68 percent, from $7.88/lb in 2006 to $20.31/lb. in 2007. Silver, gold and copper prices followed suit with 21.35 percent, 11.61 percent and 10.99 percent increases, respectively. 

The DENR noted that the supply and demand patterns of the major metals in the international market “are still too tight for comfort”, resulting in the continuous increase in prices.