Metal output up 14% in Q1

MANILA, Philippines — The country’s metal production registered a double-digit growth in terms of value in the first quarter to P28.91 billion, mainly driven by higher metal prices, the Mines and Geosciences Bureau (MGB) reported yesterday.

The first quarter figure is 14.11 percent higher than the P25.34 billion posted in the comparable period in 2020.

“The driving force for this impressive showing was attributed to the sustained bullish run of metal prices during the review period,” the MGB said.

“Despite the disruptions in mining operations brought about by the global pandemic, the mining sector still managed to pull a stellar performance because of the better metal prices, which were way higher than their pre-pandemic levels,” it said.

Nickel ore and other nickel by-products accounted for nearly half or 47.12 percent of the total metal output during the period with P13.62 billion.

Nickel ore continued to enjoy the upbeat price of nickel as production surged 48 percent to 3.57 million dry metric tons (DMT) from 2.4 million DMT in the same period last year.

The average price of nickel in the first quarter increased by 38 percent to $17,625 per ton from $12,739.72 in the same quarter a year ago.

Gold accounted for 40.49 percent of the total output value at P11.71 billion, a 10 percent increase from P10 billion in the first quarter of 2020.

In contrast, copper had an 11.51 percent share at P3.33 billion, 10 percent lower than the P3.69 billion in the same period last year.

“While the consolidated value of silver, chromite and iron ore accounted for less than one percent or P0.25 billion of the total production value,” the MGB said.

MGB data showed that the total production volume of gold inched up three percent to 4,212 kilos from 4,098 kilos in the first quarter of 2020, while copper production dropped 33 percent to 44,050 DMT from 65,538 DMT.

The average price of gold was up by 14 percent to $1,801.86 per troy ounce from $1,584.87 per troy ounce.

Similarly, average copper prices increased to $8,478.58 per ton from $5,651.25 per ton.

Mineral analysts are optimistic that the favorable metal price that began in 2020 and continued to trickle down in the first quarter will most likely continue this year.

“The big appetite of China for copper and nickel for its robust stainless and electric vehicle battery supply industries will still be the very backbone of the strong demand. China leads the world when it comes to nickel and copper consumption,” the MGB said.