Metal production drops 20% in Q3

MANILA, Philippines - Philippine metallic production fell 20 percent in terms of value in the first nine months due to lower prices in the global market, according to the Mines and Geosciences Bureau (MGB).

The aggregate value of metal production for the nine-month period stood at P85.78 billion, down P21.46 billion from the P107.24 billion record in the same period last year.

Although nickel ore and mixed nickel-cobalt sulfides accounted for more than half or 52. 43 percent of total metal production value, revenues suffered a 32 percent dip to P44.97 billion from P66.24 billion.

Due to the continued decrease in nickel price and lower demand for nickel ore by China, MGB said most of the nickel producers in the Philippines have reduced mine production tonnage, resulting in a 38 percent fall in the overall production value of nickel to P32.13 billion from P51.58 billion.

“The poor base metal price during the year was brought about by the listless world economic growth and slowdown of the Chinese economy,” MGB director Leo Jasareno said.

Meanwhile, four new nickel producers have started operations this year: Agata Mining Ventures Inc. of Minimax Mineral Exploration Corp. in Agusan del Norte; Wellex Mining Corp. of Vista Buena Mining Corp. in Dinagat Island; Libjo Mining Corp.; and Westernshore Nickel Corp., both of East Coast Mineral Resources Co. Inc. in Dinagat Island.

The new entrants accounted for 2,345,855 dry metric tons of nickel ore produced during the nine-month period, with an estimated value of P2.52 billion.

Revenues from copper production, which comprised 16.63 percent of the total metal production value during the period, also went down 12 percent to P14.26 billion from P16.17 billion in the same period last year.

The decline was attributed to the stoppage of mining operations at the Lutopan mining area of Carmen Copper Corp. in Toledo City in March.

On the other hand, gold production accounted for 30.17 percent of the total production value during the period with P25.88 billion, nine percent higher from its P23.73 billion record in the comparative period.

Higher gold production during the period was due to increased production in the following projects: the Didipio Copper-Gold Project of Oceana Gold Philippines Inc. in Nueva Vizcaya, the Masbate Gold Project of Filminera Resources, Inc., and the Maco Gold Operation of Apex Mining Co. Inc.