The government is projecting a double-digit growth in metallic mineral production in 2011 from last year, as commodity prices continue to increase and investors express sustained interest in tapping the country’s resources.
Data from the Mines and Geosciences Bureau (MGB) showed that the government was expecting mining firms to produce P137.58 billion worth of metals this year.
MGB Director Leo L. Jasareno confirmed the forecast during a phone interview. He said the government was aiming for a 39-percent increase in metallic mineral output this year from year-ago level.
Asked for the basis of the optimistic projection, Jasareno said commodity prices, including those of metals, continued to improve. “Gold, even nickel, prices are still high,” Jasareno said.
Jasareno said part of the government’s optimism came from the sustained interest of investors to engage in mining in the country to serve demand from China and South Korea.
The expected reconstruction in Japan, which suffered massive infrastructure damage from an earthquake and tsunami in the first quarter of 2011, is also seen to prop up demand for metals.
The government is also moving to purge idle mining applications and streamline processes concerning the awarding of projects. For one, the government is keen on bidding out mineralized properties where previous claims were cancelled due to lack of activity.
The Philippines expects mining investments to reach $17.35 billion by 2016. Total cumulative mining investments from 2004 to 2010 reached $3.832 billion.