Metal mine production sinks further, but at a slower pace

THE VALUE of production of the country’s 41 metal mines sank in the nine months to September, but an annual increase in the price of gold helped break the fall compared to a year ago.

A press statement posted yesterday on the Web site of the Mines and Geosciences Bureau (MGB) said the total value of metallic mineral production sank 11% to P75.93 billion from P85.47 billion in those comparable nine months, although that decline was slighter than the first half’s 13.59% fall and the 20% drop in the first three quarters of 2015.

“Poor base metal prices of nickel and copper, coupled with the suspension of six nickel mines in the provinces of Palawan and Zambales, led to the anemic performance of the metallic sector,” MGB said in its press statement.

Gold continued to contribute more than the other metals, accounting for 44% of the total at P33.572 billion, reflecting a 30% increase from the year-ago P28.878 billion.

The yellow metal was followed by direct shipping nickel ore and mixed nickel-cobalt sulfide with a combined 37% at P28.21 billion that dropped from a year ago.

Copper contributed 18% at P13.316 billion, falling seven percent from the past year’s P14.264 billion.

The remaining one percent — about P840 million — came from the collective values of silver, chromite and iron ore.

The average price of gold increased by 6.49% to $ 1,256.70 per ounce (/oz) from $ 1,180.13/oz year on year, compared to the 8.43% annual drop recorded in 2015’s first nine months.

Silver similarly stayed robust with a 6.36% year- on-year increase to $ 17.05/oz from $16.03/oz in the same comparative nine months, compared with a 19.64% annual fall recorded the past year.

But the impact of these price increases was offset by 30.65% and 20.49% declines in the prices of nickel and copper respectively. Nickel price tumbled to $3.95 per pound (/ lb) from $5.70/ lb, while that of copper fell to $2.04/ lb from $2.57/ lb.

This year has seen operations at 10 metal mines nationwide suspended as a result of a state environmental audit, and 20 others face the same fate should they be found liable for various deficiencies and violations.

Before that, the industry had already been reeling from a moratorium on new permits that has been in place since 2011 and extended indefinitely through Executive Order No. 79 signed on July 6, 2012. — with