Mining sector seen sustaining strong 9-month performance

MANILA  -The country’s mining sector is expected to sustain the growth recorded in the first nine months of this year as the shift towards green technologies and the opening of an export market in Indonesia bode well for the industry.

In a report, the Mines and Geosciences Bureau (MGB) said metallic production inched up by 7.28 percent to P189.08 billion in the nine months to September from P176.24 billion in the same period a year ago.

Nickel ore and its by-products contributed the most to the overall production with a share of 47.60 percent or P89.99 billion while gold took the second spot with 41.07 percent or P77.65 billion.

Copper came third with 9.94 percent or P18.79 billion. Silver, chromite and iron ore accounted for the remaining 1.40 percent or P2.64 billion.

On a regional basis, Caraga accounted for 31.93 percent or P60.36 billion of the total. Mimaropa and Cagayan Valley came next with P25.56 billion (13.52 percent) and P22.12 billion (11.70 percent), respectively.

Nickel direct shipping ore production surged by 24.08 percent to 28.9 million dry metric tons with an estimated value of P53.54 billion during the reference period.

Although the average price of nickel was slightly down to $10.39 per pound year-on-year, the MGB said it was still above prepandemic levels.

“Experts speculate that toward the end of the year, nickel prices will go up mainly due to supply reduction coupled with the sustained demand from stainless steel and batteries (for electric vehicles) of which nickel is an important component,” it said.

The volume of yellow metal produced increased by 6 percent to 22,935 kilograms, equivalent to P77.65 billion. Gold prices averaged $1,932.07, up by 5.8 percent.

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Copper output went up by 2 percent to 195,533 dry metric tons although its value slid to P18.79 billion as copper prices dropped to $3.90 per pound.

Silver production decreased by 14 percent to 35,784 kilograms, bringing down its overall value by 9 percent to P1.42 billion.

Meanwhile, chromite output settled at 67,877 dry metric tons amounting to P957.65 million.

For the reference period, the government received about P5.09 billion in excise tax payments and about P1.97 billion in royalties derived by the government from the development and utilization of the mineral resources within the mineral reservation areas.

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The MGB is projecting the outlook for the mining industry remains strong on the back of the “clear shift” towards renewable technologies or green technologies.

“The essential or critical metals for the advancement of said technologies remain under the spotlight these include minerals such as gold, nickel, cobalt, copper and iron,” it said.

It also cited the emergence of Indonesia as the latest export market for nickel ore given the supply of nickel ore in this country is a bit tight. INQ