Mined metals’ value in Q1 rose by 17%

The value of metallic minerals produced by Philippine mines jumped by 17 percent year-on-year to about P22 billion in the first quarter, according to the Mines and Geosciences Bureau.

MGB director Leo L. Jasareno said in a report that this growth was driven by gold production, despite declining prices in the three-month period involved.

From January to March, mines turned out P8.48 billion worth of gold that represents 39 percent—or close to two-fifths—of total output.

Gold output surged 17 percent in value and 31 percent in volume to reach 4,509 kilograms.

Jasareno cited the Didipio and Padcal gold-copper projects in Nueva Vizcaya and Benguet, respectively, as well as the Toledo copper project in Cebu as the main drivers of first-quarter production.

In a separate report, OceanaGold Corp. said that the Didipio mine—which started commercial operation in April 2013—posted a “record quarterly gold production of 30,480 ounces.”

According to Jasareno, first-quarter gold output improved despite prices going down by as much as 21 percent year-on-year to $1,292.93 per troy ounce from $1,631.81.

Similarly, prices of the base metals nickel and copper fell by 15 percent and 11 percent, respectively.

Direct shipping of nickel ore and nickel sulfides accounted for the second-biggest bulk of mine output, pegged at P7.65 billion or 35 percent of total.

The value of directly shipped nickel products fell by 14 percent, which was attributed to the unfavorable weather condition that prevailed over the areas of Dinagat and Surigao provinces early this year.

Jasareno explained that nickel mining is weather-sensitive because this is done on the surface instead of underground.

“Of the 27 nickel mining projects in the country, 18 are operating in the said areas,” he said. “And of these 18 projects, 11 reported zero production for the first quarter.”

Further, copper production represented barely a quarter (24 percent) of total, valued at P5.34 billion.

The remaining 2 percent of mine output are in the form of silver, zinc, iron ore and chromite.

Jasareno said three new mines with investments totaling P1.46 billion are expected to go online within this year.

These are the Vitali iron ore mining project of Atro Mining-Vitali Inc. in Zamboanga City, the Libjo nickel laterite project of East Coast Mineral Resources Co. Inc. in Dinagat Island, and the Agata nickel laterite project of Minimax Mineral Exploration Corp. in Agusan del Norte.