Metal output falls 23% to P108 B in 2015

MANILA, Philippines - Metal production fell 23 percent to P108 billion in 2015 due to the downward trend in metal prices caused by excess supply and weak global trade, the Mines and Geosciences Bureau (MGB) said.

The aggregate value of metal production for 2015 was lower than the P140.2 billion recorded in 2014, a reversal from the almost 40 percent growth in the said year.

Although direct shipping nickel ore and mixed nickel-cobalt sulfides accounted for half of total metal production value, revenues suffered a 35 percent dip from P83 billion to P54.2 billion.

“China, which accounted for the largest metal consumption in the past 10 years or so, has resoundingly been reducing its demand for the base metals like nickel and copper and these metals are always vulnerable to economic slowdown,” MGB said.

Revenues from copper production, which comprised 17 percent of total metal production value, also went down 17 percent to P19 billion from P22.8 billion in 2014.

Nickel price dropped to $5.34 per pound from $7.56 per pound while copper price was also down from $3.06 per pound to $2.48 per pound.

“China has been the country’s major market for nickel, copper, chromite and iron ore. Both nickel direct shipping ore and mixed nickel-cobalt sulfide reported lower mine and plant output mainly because of the weakened global demand for the metal,” MGB said.

On the other hand, gold production accounted for 32 percent of the total production value with aggregate earnings of P34.2 billion, up four percent from P33 billion in 2014.

Higher gold production last year 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 Mining Corp., and the Co-o Gold Project of Philsaga Mining Corp. in Agusan del Sur.

But metal prices were less favorable for producers last year compared in 2014. Gold fell 8.4 percent to $1,163.59 per troy ounce from $1,269.57 per troy ounce on the comparative period.

The production value of silver, likewise, grew five percent to P647 million from P616 million in 2014 despite the decline in prices from $19.08 per troy ounce to $15.72 per troy ounce in 2015.

The remaining 0.78 percent of total metallic production, or P850 million, came from the combined value of silver, iron ore and chromite.