The government is optimistic investors will push through with their mining projects here despite the continued softening of metals prices, the Mines and Geosciences Bureau (MGB) said.
?The outlook on metal prices remains bleak as the global economic crisis, which has beset most powerhouse nations, shows no signs of letting up any time soon,? the bureau said.
The crisis, which started in the United States, has spread to other countries.
?We see China and India?which played significant roles in the upsurge in metal prices in 2006?curbing their consumption and demand for nickel, copper, gold and silver,? MGB noted.
?This situation has affected the metals market fundamentals, resulting in a supply and demand imbalance, and more supply and lesser demand equals softer price,? it added.
The MGB noted that nickel prices, which posted substantial increases in 2006 and 2007, have started falling this year after peaking at $23.67 per pound in May 2007.
The average price of nickel in the first nine months of the year has dropped by 38.3 percent to only $11.13 per pound from the year-ago level of $18.05 per pound.
Similarly, copper price fell sharply in September 2008 to only $3.17 per pound from the high of $3.94 per pound early this year.
Prices of gold and silver continued their rally this year, with the average price of gold hitting $232.12 per troy ounce in the first nine months of the year, up from $665.74 per troy ounce a year ago.
The nine-month average price of silver also jumped to $16.61 per troy ounce from a year-ago level of $13.10 per troy ounce.
The MGB admitted the slump in the prices of some major metals, along with the delay in some of the government?s mineral resources priority projects and the global economic crisis, would somehow adversely affect the investment targets for the industry.
However, the mining industry is still confident that it can withstand the ill effects of the current global financial crisis. This positive outlook is anchored on the government?s continuing effort to institute reforms in the industry.
?Even with the drop in metal prices, mining investors are still expected to continue investing in exploration, construction, development and other related projects in preparation for the upward trend in demand and prices of metals and minerals in the long run,? the MGB said.
Recently, MGB said the government had granted Epithermal Gold Corp. a permit to explore gold and associated mineral deposits in Negros Occidental province.
?This is a strong sign that investors? interest in the local minerals industry is not waning,? it added.
