The Chamber of Mines of the Philippines (COMP) sees the mining sector’s performance improve in the second half of this year due to ongoing efforts to support green energy and better global prices.
COMP chair Michael Toledo said copper prices are projected to improve in the second semester on the back of the continued global push toward green energy.
“Generally, copper prices will be good over the long-haul due mainly to green electrification and renewable energy transition,” Toledo said in a Viber message.
Copper might face a temporary slowdown due to the “faltering” Chinese economy but it is expected to recover afterwards, he said.
Toledo added that forecasts for gold remain bullish for the period after posting record highs in the first half as the yellow metal remains a “wealth protection against rising prices.”
“Some experts expect to see new record highs in the second half despite the global easing of inflation, especially if the US Federal Reserve opts for more than one rate cut this year as a result of a sharper-than-expected drop in inflation,” he said.
In terms of nickel production volume, COMP anticipates a higher output in the second half this year as production from Surigao runs for five months—longer than the three-month run during the first semester.
“In terms of value, increased nickel demand from Indonesia may contribute to better prices. Any improvement in the nickel pig iron and stainless steel markets will also support nickel ore prices,” he added.
Toledo said if these projections are achieved, it would help mining companies offset higher operating costs in recent months.
The Mines and Geosciences Bureau (MGB) is yet to report the country’s metal production in the first semester of 2024.
First-quarter data from the MGB show that metal output decreased by 12.8 percent to P51.81 billion this year from P59.39 billion in the same period last year.
“This was mainly attributed to metal price cutbacks and the slowdown in mine production,” the MGB had said.
Gold accounted for 52.01 percent or P26.95 billion of the total value. INQ