The Chamber of Mines of the Philippines (COMP) expects the mining sector to improve in the latter half of the year due to green energy initiatives and an uptick in global prices.
In a report by Inquirer, COMP chair Michael Toledo said that copper prices are predicted to rise in the second half of the year, driven by the global push for renewable energy and green electrification.
While copper may face short-term pressure from China’s weakening economy, Toledo believes it will recover in the long term, benefiting from the transition to green energy.
Toledo also expressed confidence about gold, which continues to be seen as a safeguard against inflation, with forecasts pointing to potential new record highs in the second half.
Experts predict that gold prices could climb higher, especially if the US Federal Reserve cuts interest rates more than once due to unexpected drops in inflation, despite global inflation easing.
For nickel, COMP projects a higher production volume in the second half of the year as Surigao’s operations extended for five months, compared to just three months in the first half.
Toledo added that rising demand for nickel from Indonesia could bolster prices, and any improvements in the nickel pig iron and stainless steel markets will support nickel ore value.
These potential price increases could help mining companies cushion the impact of higher operating costs they have experienced recently.
The Mines and Geosciences Bureau (MGB) has yet to release the metal production report for the first half of 2024.
In the first quarter, the MGB reported a 12.8% decline in metal output, which amounted to Php 51.81 billion, down from Php 59.39 billion in the same period last year.
The MGB attributed this decrease to lower metal prices and a slowdown in mine production during the first quarter.
Gold accounted for over half of the total value, contributing Php 26.95 billion, or 52.01% of the total output.
