MANILA: MGB said metal mineral production dropped eight percent to P100.56 billion last year from 2015’s P109.84 billion, blaming “[p]oor base metal price, a string of mine suspension and… non-operation due to unfavorable weather conditions” for the sector’s “lackluster performance.”
Increases in gold and silver production, the agency noted, were not able to make up for declines in output of copper and nickel. Gold continued to contribute the biggest chunk at P44.85 billion, or 44% of the total.
Nickel direct shipping ore and mixed nickel-cobalt sulfide took the second spot with 37% at P36.84 billion, followed by copper with 18% or P17.76 billion. The remaining one percent or P1.11 billion came from the consolidated output of silver, chromite and iron ore.
“The P10.88-billion gain in the combined production value of gold and silver in 2016 — due to the growth in mine production coupled with improved metal price of gold and silver — was not sufficient to offset the substantial P16-billion decline in the production value of copper and nickel,” MGB noted.
World prices of gold and silver respectively increased by 17% $1,360.85 per troy ounce (/oz t) from $1,163.59/oz t and by 19% to $18.63/oz t from $15.72/oz t. Copper and nickel recorded respective declines of three percent to $2.40 per pound (/lb) from $2.48/lb and of 11% to $4.75/lb from $5.34/lb, MGB reported further.
Nickel direct shipping ore production volume and value went down by 23% and 41%, respectively, to 24,652,913 dry metric tons worth P21.77 billion in 2016 from 32,076,948 dry metric tons worth P36.60 billion in 2015.
MGB noted that operations at seven of the country’s 28 nickel mines were suspended even before the wide-ranging environmental audit that began in July last year, while four others had voluntarily stopped operations.
