DENR sees 17.6% hike in mineral sales

The Department of Environment and Natural Resources (DENR) is projecting sales of mineral products from new and existing mineral development projects this year to amount to $3.62 billion, a rise of 17.6 percent over last year’s sales value of $3.078 billion.

The increased mineral output would come from the new Carmen (Toledo) Copper project, the Didipio copper-gold project, the Palawan nickel expansion project, the Masbate (Arroyo) gold project, the Masara gold expansion, the Iligan and Manticao ferronickel smelter project, the PASAR copper smelter expansion project, the Philsaga gold project, the Sta. Cruz Candelaria nickel project and the Tubay nickel project.

The higher mineral sales value is based on higher mineral prices this year over last year.

The Philippines’s mineral output includes gold, silver, copper, zinc, nickel ore, nickel (in concentrate), ferronickel, calcined nickel ore, cobalt, chromite and limestone.

The price of copper this year is projected to reach $7,716 per ton this year compared to $7,054 per ton last year.

Gold prices are projected at $925 per ounce this year compared to just $696.37 per ounce last year.

Silver prices, likewise, is projected at $17 per ounce this year compared to $13.38 per oz. last year.

Projected sales volume this year of copper (in concentrate) is 30,739 dry metric ton (DMT), while that of copper cathodes is 189,600 DMT.

Last year, actual copper (in concentrate) sales volume was only 22,862 DMT while copper cathodes sales volume was slightly higher at 193,500 DMT.

Projected gold sales volume this year is 1,664,962 ounces (ozs)  compared to 1,243,425 ozs last year.

Projected sales volume of silver is expected to almost triple to 2,460,731 ozs from only 890,323 ozs last year.

On the other hand, projected sales volume of nickel ore this year is expected to drop sharply to just 3,816,823 wet metric ton (WMT) compared to 2007’s 5,850,763 WMT.

Projected sale volume of nickel concentrate, is expected to increase to 16,000 DMT from only 11,000 DMT last year.

Projected sales volume of chromite is also expected to go up to 56,202 DMT from only 37,466 DMT last year.

Zinc (in concentrate) sales volume this year is projected to hit 19,391 DMT, higher than the 15,925 DMT for last year.

Projected sales volume of cobalt this year is at an initial 750 DMT.

The DENR earlier projected $892 million in new investments this year, 47 percent higher compared to the $605.09 million reported last year.

Most of the investments projected this year or $750 million would come from operating and expanding projects and first tier mining projects, while $90 million would come from second tier projects and $5.6 million would come from priority explorations projects.

Of the $892 million in new investments expected this year year, $21 million is expected to come from already operating mining projects, particularly the Berong nickel project of TMM Management Inc. with a planned additional investment of $2 million this year  and the PASAR copper smelter expansion project which is infusing $19 million this year.

The bulk of the $892 million in new investments this year or $317.80 million would come in from at least seven first tier priority mining projects which are already in various construction and development stage.

The first tier mining projects expected to make additional investments this year are the Carmen copper project of the Carmen Copper Corp. (a subsidiary of Atlas Consolidated and Mining Corp.) with $95 million; the Didipio copper-gold project of Oceana Gold Phils. with $64 million; the Palawan line 2 nickel project of Coral Bay Mining Corp. with $75 million; the Canatuan base metal project of TVI Resources Dev’t Phil., Inc. with $18 million; the Masbate gold project of Filminera Resources Corp. with $58 million; the Iligan ferronickel smelter plant of the Platinum Group of Metals Corp. with $2.8 million and another $2.8 million also from PGMC for its Manticao ferronickel smelter plant; and $2.2 million from Philsaga Mining Corp. for its Philsaga gold project.

New investments amounting to $302 million would come from at least eight mining projects that are still in the feasibility and financing stage, while $130.2 million are expected from nine projects in the advanced exploration stage.

Second tier priority projects of the Philippine Mining Development Corp., Lepanto Consolidated and Mining Corp. and that of Benguet Corp. are also expected to put in $90 million in new investments this year while $31 million will be brought in to explore potentials sites by at least 23 firms.