Value of PH metallic mineral production up 14% in Q1

The Mines and Geosciences Bureau has reported (MGB) the value of the country’s metallic mineral production for the first quarter rose by 14.11% to ₱28.91 billion from ₱25.34 billion last year.

The sustained growth of metal prices continued to boost mining firms’ revenues despite pandemic-related disruptions, with gold, nickel, and copper enjoying record prices.

MGB records showed that the price of gold averaged $1,802 per troy ounce, up from $1,584 a year ago.

Three-month averages for copper and nickel grew by 50% and 38%, respectively, to $8,479 a ton and $17,625 a ton.

Overall, nickel continued to surpass gold as the sector’s main revenue driver, pitching in ₱13.62 billion worth of output or about 47% of the entire mineral production for the period. Gold followed with ₱11.71 billion or 40%, while silver, chromite, and iron accounted for less than 1% of the total.

“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.

On the supply side, because of the COVID-19 pandemic, the very likelihood of disruptions in mining production worldwide due to forced lockdowns and cut-down operating hours still looms. Tight supply vis-à-vis strong demand will certainly drive prices to increase,” said the MGB.

All things considered, both local players and the MGB are anticipating fresh investments following the issuance of Executive Order No. 130. Over 100 mining applications were received by the MGB since the EO lifted the moratorium on the issuance of new mining permits.

SOURCE: Inquirer