Metal products’ value seen to rise 10% in next 4 years

MANILA, Philippines - Metal production value is expected to rise by nine to 10 percent in the next four years as the new mining policy is implemented, the Department of Environment and Natural Resources (DENR) said yesterday.

Environment Secretary Ramon Paje said the higher projected output was arrived at by the economic cluster of the Mining Industry Coordinating Council (MICC) amid the commissioning of new mines and the expansion of several others this year.

Several mining companies have submitted  to the DENR their declaration of mining project feasibility (DMPF), a document containing an assessment on the commercial viability of deposits.

In March, the DENR-Mines and Geosciences Bureau (MGB) lifted the moratorium on the acceptance of applications for exploration permits (EP) and Financial or Technical Assistance Agreement (FTAA) after a two-year stoppage on acceptance of applications.

In 2011, the government stopped the acceptance of applications to revamp the approvals process to prevent the entry of speculators or mining rights holders who only use their permits to influence stock prices but do not develop their tenements.

In line with this, the government has also raised the filing fees and capitalization requirements for EPs and FTAAs as stipulated under the new mining policy which was issued in July.

This was intended to retain in the industry serious investors who will develop resources.

Key mining investments that commenced operations and are on expansion mode this year include  Oceana Gold Corp.’s copper-gold project in Didipio Nueva Vizcaya, Altas Consolidated Mining and Development  Corp.’s expansion projects in Toledo copper mine Cebu, and the HPAL project of Sumitomo Metal Mining Corp in Surigao.

Paje noted that several nickel miners also started operations this year.

Philex Mining Corporation also resumed production in its copper-gold mine in Padcal, Benguet this year after it was given four months to temporarily resume operations.

Metal production in 2012 fell by 18.04 percent in 2012 in terms of value due to the suspension of operations of several mines and lower gold purchases made by the central bank during the period.

Data from the Mines and Geosciences Bureau (MGB) showed that metal production value in 2012 reached P100.798 billion against P122.984 billion in 2011.

Suspended in 2012 were the operations of the Padcal Copper-Gold Project of Philex Mining Corporation Benguet; the Nonoc Nickel Project of Shuley Mines Inc. and pacific Nickel Philippines Inc. In Surigao del Norte; the Leyte Magnetite Project of Nicua Corporation in Leyte; and the Paracale Gold Project of Johson Gold Mining Corporation in camarines Norte.

The value of documented gold output of small-scale miners also fell by 93 percent in 2012 as reflected in the purchases made by the Bangko Sentral ng Pilipinas (BSP) during the year. This pulled down the overall gold production value by 44 percent.