Metal production rises as China demand grows

The country’s production of metals improved in the first half, rising by nine percent to P61 billion amid increasing demand from China.

Data from the Mines and Geosciences Bureau (MGB), however, showed a decline in metal prices during the period.

MGB expects prices to rebound in the second semester, especially for base metals copper and nickel.

“The positive outlook was motivated by expected economic growth and increased demand from China. The growing concern for possible disruptions in the operations of main nickel producers in the world market coupled with the growing demand for electronic vehicles will also push prices higher,” MGB said.

A major development in the world market that will also boost nickel prices is Indonesia’s ban on exports of nickel ore with nickel content below 1.7 percent effective end-2019.

The situation will result in lower supply vis-à-vis higher demand as Indonesia is currently the world’s largest nickel-producing country with 560,000 metric tons followed by the Philippines with 340,000 MT.

Meanwhile, gold production accounted for 39 percent of the total production value with aggregate earnings rising five percent to P24.1 billion as output increased to 11,078 kilograms.

Gold metal price fell to $1,307.36 from $1,318.33 per troy year-on-year.

Direct shipping nickel ore and mixed nickel-cobalt sulfides increased 21 percent to P26.6 billion. Nickel prices also decreased to $12,316 per MT from $13,859 per MT.

Revenues from copper production, which comprise 16 percent of the total metal production value, went down five percent to P9.8 billion despite a 14 percent surge in output to 156,745 dry metric tons.

The decline was attributed to the decline in prices of copper.

The production value of silver decreased two percent to P396 million even as production rose seven percent to 15,849 kilos.

The remaining one percent of total metallic production or P620 million came from the combined value of silver, iron ore and chromite.

The Philippine Gold Processing and Refining Corp. was the country’s major gold producer in the first semester.

Of the 31 producing nickel mines in the country during the period, Rio Tuba Nickel Mining Corp. topped the list with 2.6 million DMT output.

Sixteen nickel mines reported zero production as some mines are under maintenance and care status or have suspended operations due to environment-related issues.

Meanwhile, operations of Toledo Copper Corp. in in Cebu accounted for 58 percent of the total output.

To date, the country hosts 50 operating metallic mines, consisting of 31 nickel, 10 gold with silver as co-product, three copper with gold and silver as co-products, three chromite, three iron, and two nickel plants and two gold plants.

These are in addition to the numerous small-scale gold mining operations across the country.