Metallic production in the country kept its upward momentum, recording a 10.4 percent increase for 2018 amounting to P 122 billion amid better metal prices in the world market.
The Mines and Geosciences Bureau (MGB) said this positive record can be attributed to the implementation of the Tax Reform for Acceleration and Inclusion, also known as TRAIN law.
TRAIN Law’s enactment resulted in the increase in collected revenues from mining companies after the excise tax rate for minerals and mineral products doubled to four percent.
MGB added that the Chinese stainless production’s demand for resources which sustains better metal pricing also contributed to keeping the increase in metal production in the Philippines.
China is still the largest market for metals with global consumption amounting to 50 percent. It also remains as the major market for our country’s nickel ores, importing 92 percent of the total production of the Philippines for 2018.
Due to higher demand with low inventories, direct shipping nickel ore and mixed nickel-cobalt sulfides was priced more at $ 5.92 per pound compared to its previous, $ 4.68. These two amounted to 45 percent of the total metal production having P 55.1 billion, taking the lead record amongst other minerals.
Gold, on the other hand, had production accounted to 37 percent, or to P 44.8 million which is two percent lower due to decrease in output – 20,765 kilograms.
Nevertheless, price for gold had an upturn amounting to $ 1,265.48 per troy ounce from $ 1,252.43 per troy ounce year-on-year.
Despite an almost flat yield at 282,391 DMT, copper production was still valued at 17 percent of the total metal production having an addition of seven percent from previous record. Better copper pricing at $ 2,72 to $ 2.95 per pound allowed the growth in copper production which equals to P 20.68 billion.
Silver’s production value, however, mirrored its lower production in 2018 resulting to a nine percent decrease or P 791 million.
Combined value of iron ore and chromite accounts for the remaining one percent of the country’s metal production. This is equivalent to P 1.28 billion.
Currently, the country has 48 operating metallic mines, with two nickel and two gold processing plants, and numerous small-scale gold mining operations.
