Value of mining output down 14% in first semester

The value of the country’s metallic mineral production for the first semester declined by 14 percent after mining operations were affected by the lockdown imposed to contain the new coronavirus.

The Mines and Geosciences Bureau (MGB) reported that the value of the mining sector’s overall production went down to P53.88 billion from P62.92 billion as the output of gold, silver and copper all declined following the temporary suspension of mining operations.

Despite contributing 45 percent of the total for the first half, the value of nickel ore and its products declined to P24.13 billion from P27.86 billion.

As for gold, higher prices in the global market allowed it to absorb the losses in volume production. Its value went down by only 10 percent despite production volume going down by 27 percent.

Market analysts believed that gold prices would continue to rise given the current world economic slowdown as the precious metal remains a safe investment haven.

On copper production, volume and value became sluggish after registering decreases of 17 and 27 percent.

Overall, MGB said the performance of the mining industry was dictated by four factors—the persistence of the COVID-19 pandemic, the slowdown in economic activities, the upbeat prices of world metal and the limited mining operations.

The country continues to rely on its traditional markets including China and Japan for nickel and copper, and Switzerland and Hong Kong for gold.

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