Metal output up 1.13% in 2020

The country’s metal production ended 2020 on an upward trajectory, mainly driven by the nickel sector.

Data from the Mines and Geosciences Bureau (MGB) showed the aggregate value of metal output increased to P132.21 billion from P130.74 billion in 2019.

This marks the fourth consecutive year of growth for the metallic minerals industry.

“Nickel ore, together with the nickel by-products - mixed nickel-cobalt sulfide and scandium oxalate, ruled the production scene with P68.48 billion or 51.80 percent,” MGB said.

It emphasized that direct shipping nickel ore steered the local mining industry to this upswing, with production volume up by three percent to 333,962 metric tons, with production value also growing to P38.39 billion from P31.65 billion in the year before.

In contrast, mixed nickelcobalt sulfide recorded lower output and value to 49,647 metric tons and P29.76 billion, respectively.

Meanwhile, gold accounted for 36 percent share of the total value at P47.60 billion, one percent lower than the year before. Production volume also declined to 17,424 kilos from 20,646 kilos.

Similarly, production value of silver dropped seven percent to P0.77 billion in 2020, while production volume also dropped 24,024 kilos from 31,267 kilos in the year before.

Copper also registered a 19 percent decline in production value to P14.88 billion, while volume dropped 18 percent to 60,856 metric tons from 71, 892 metric tons.

“Mine output of gold, silver and copper continued to be on the downswing with the absence of Didipio Gold-Copper Project of OceanaGold (Phils) Inc. (OGPI) located in Nueva Vizcaya,” MGB said.

It added that during its production years, the average annual contribution of the company to the country’s mine output was as follows: 20 percent or 4,191 kilograms of gold; 24 percent or 7,003 kilograms of silver; and 25 percent or 20,575 metric tons of copper.

MGB emphasized that the 2020 production loop was composed only of 18 nickel mines, eight gold mines with silver as by-product, three copper with gold and silver as by-products, one chromite mine, one (iron mine, two nickel processing plant, two gold processing plants, and small – scale chromite mining operations.

It added that the mining operations with reported zero production were not included in the total number.

“We are hoping that as the year progresses new mining projects will enter the production-stream and those mining operations that recorded zero production in 2020 will resume operations to inject the much needed lift to the minerals sector,” MGB said.

MGB said the outlook for the minerals industry this year remains uncertain as the COVID-19 pandemic remains a threat to lives and livelihoods.

“Operations in mining continue, but were hampered when quarantines or lockdowns were imposed due to new COVID-19 positive cases in the area,”the MGB said.

“When this happens the companies have no recourse but to reduce total man-hours and manpower or worse, impose lockdowns to comply with the health protocol set by the local and national government,” it added.

Moreover, the continued non-production of a number of mining operations due to environmental related issues or mine-imposed non-operations due to unfavorable weather conditions and care maintenance status is also seen to affect the performance of the local minerals sector this year.

“It is important to note that during the last quarter of 2020, the country was severely hit by strong Typhoons Rolly, Ulysses,and Vicky.

“Another factor that will have a telling impact on the performance of the industry this year is the non-production of a major producer of copper, gold, and silver OGPI, located in Nueva Vizcaya,”MGB said.