Metal sector shines with record output

MANILA, Philippines —  Higher gold and nickel output buoyed the country’s metal production to a record level of P249 billion in 2023, offsetting contractions in other commodity output.

The Mines and Geosciences Bureau (MGB) said metallic mineral production rose by almost five percent to P249.05 billion in 2023 from P237.66 billion in 2022.

“This performance was attributed primarily to the positive showing of gold and nickel ore,” the MGB said.

Data showed that gold was the top contributor to the overall production at P106.64 billion, followed by nickel direct shipping ore at P65.84 billion.

The value of gold production went up by 17 percent from the P91.05 billion in 2022. The country produced 31,046 kilograms of gold, up seven percent from 29,036 kilograms in 2022.

The MGB attributed the hike in gold performance to higher global prices and the resumption of operation of one gold mine last year.

It said gold prices increased by 7.8 percent to $1,942.8 per troy ounce in 2023 from $1,802.28 per troy ounce in 2022.

“The re-entry of Greenstone Resources Corp. into the production scene this year has also raised production,” the MGB said.

Data also showed that the value of nickel direct shipping ore grew by seven percent from P61.659 billion in 2022 on the back of higher volume that offset the drop in global nickel prices.

The country produced 35.14 million dry metric tons of nickel direct shipping ore last year, 19 percent more than the 29.42 million dry metric tons in 2022, based on MGB data.

Meanwhile, nickel prices dropped by 16 percent to $9.93 per pound from $11.86.

MGB noted that the entry of new players in the nickel industry such as ARC Nickel Resources and Hallmark Mining Corp., both located in Davao Oriental, and Kafugan Mining Inc. in Surigao del Sur contributed to the higher output.

“As a short-term outlook, the performance of the minerals sector will always be dictated by prices, and price behaviors will naturally depend on the world supply and demand patterns this year and into the next,” the MGB said.

The MGB said metal supply would remain influenced by “production cutbacks” and “shortfalls” due to disruptions caused by geopolitical conflicts, weather conditions and fuel prices, among others.

“The entry of new players or expansion of existing projects will also be a big factor. While demand is shaped by how robust or weak the global economy in the construction, and manufacturing sectors will be,” it added.

The country’s output of nickel-cobalt mixed sulfide declined both in terms of volume and value.

The production volume of nickel-cobalt mixed sulfide retreated by four percent to 77,904 dry metric tons from 80,991 dry metric tons.