Metal output rises to P23.7B in Q1

Philippine metal production in the first quarter of 2015 rose 7.17 percent in terms of value to P23.72 billion from P22.14 billion still on strong production of nickel, the Mines and Geosciences Bureau (MGB) reported yesterday.

Direct shipping nickel ore and mixed nickel-cobalt sulfide accounted for 42.46 percent of the total production value at P10.07 billion.

Gold and copper output comprised 36.12 percent and 20.60 percent of the total production value, respectively, at P8.57 billion and 4.89 billion.

The combined output value of silver, chromite and iron made up 0.81 percent of the total at P190 million.

The combined total production value of direct-shipping nickel ore and mixed nickel cobalt of P10.07 billion was up from P7.83 billion in the first quarter of 2014.

The following mining projects posted the highest mine output for direct-shipping nickel ore during the review period: Rio Tuba Nickel Project of Rio Tuba Nickel Mining Corp. in Palawan with 693,585 dry metric tons; Claver Nickel Project of Taganito Mining Corp. in Surigao del Norte with 515,033 dry metric tons; Tubay Nickel-Cobalt Project of SR-Metals, Incorporated in Agusan del Norte with 434,158 dry metric tons; and Toronto-Pulot Nickel Projects of Citinickel Mines and Development Corp. in Palawan with 413,147 dry metric tons.

The MGB said gold production is also expected to increase this year with the reentry into the production stream of Siana Gold Project of Greenstone Resources Corp. in Surigao del Norte, which reported zero production in 2014 due to suspension of operations.

Metal prices remained sluggish in the first quarter of 2015 with gold, silver, copper and nickel all exhibiting negative growth rates year-on-year.

“The sluggish price movements, particularly for base metal, were due to weaker demand, most especially from China,” said the MGB in the report.

Several nickel producers reported lower earnings in the previous quarters despite higher shipment volumes because of volatile and depressed nickel prices.

The prevailing dry spell, which is expected to peak in the last quarter of the year, is expected to boost nickel production as the frequent rains are a deterrent to mining operations.