Metal output in H1 pegged at P45.9B

The shrinkage in first-semester domestic metal output slowed to 7.9 percent year-on-year to settle at P45.9 billion amid continually depressed prices, according to the Mines and Geosciences Bureau.

MGB data show that—while output of gold, silver, copper and nickel all fell—the overall decline abated from a 28-percent plunge in the first six months of 2012.

Philippine mines produced a total of P49.8 billion in the first half of last year, with the number revised downward from the previously reported P51.2 billion.

Nickel output—both in terms of mixed sulphides and directly shipped ores—accounted for the biggest share of metals produced with 41 percent or P19 billion.

Gold accounted for the second-biggest share with 34 percent P15.6 billion.

Based on unrevised 2012 data, nickel sulphide output fell by 7.9 percent, nickel ore by 17.6 percent and gold by 14.2 percent.

Also in the first half this year, copper concentrates chipped in about P10 billion while the remaining P1.3 billion came from silver, zinc, chromite and iron.

“Dictated by the less upbeat world market prices, the precious metals gold and silver, and the base metals copper and nickel, all recorded negative (growth in the first half),” the MGB said in a report.

The agency said demand for gold “remained strong” particular from India and China even if average prices dropped by 7.7 percent to about $1,525 per ounce.

Also, the average price of copper fell by 7.5 percent to $3.39 per pound while that for nickel plunged 13.1 percent to $7.25 per pound.

Further, the MGB noted that the start of production from Oceanagold’s Didipio copper-gold project in Nueva Vizcaya and of LNL Archipelago Minerals Inc.’s and Filipinas Mining Corp.’s Guinabon nickel project in Zambales helped cool down the fall in output.

“The commencement of commercial operation of (Didipio) is very significant as the company holds the first Financial or Technical Assistance Agreement” (FTAA) that the government approved in 1994,” the MGB said.

The government has since then approved only five other FTAAs, which are all still in the exploration stage.

An FTAA allows a foreign corporation to legally own and control a majority stake in large-scale mineral resources in the Philippines.

Last year, Malacañang issued Executive Order No. 79, which suspended the processing of applications for mineral agreements until a new revenue-sharing scheme between the government and mining contractors has been made into law.

But last March, the MGB resumed accepting new mining applications after its parent agency, the Department of Environment and Natural Resources (DENR), issued Administrative Order (AO) No. 2013-11.

AO 2013-11 spells out a five-fold increase in filing and processing fees, with applicants now having to pay P300 per hectare from the P60 per hectare previously.

This followed a memorandum that the DENR issued last March 7, lifting the moratorium on the acceptance of mining applications for exploration permit and FTAA.

The MGB said last April that it initially received 202 mining applications, of which 30 were accepted and 62 were re-submitted for re-evaluation due to deficiencies in requirements while the rest were returned due to various flaws.