The Department of Environment and Natural Resources (DENR) reported a 7.28% surge in the value of metallic mineral production in the Philippines during the initial three quarters of 2023.
As per the report released by DENR’s Mines and Geosciences Bureau (MGB), domestic metallic mineral production climbed to Php 189.08 billion from Php 176.24 billion in the same period of 2022.
The increase of at least Php 12.84 billion in mineral production was due to the strong performance of gold and nickel.
Compared to the previous year’s 23.29 dry metric tons, the production volume of nickel ore increased by 24.08% to 28.89 million DMT.
Despite a decline in nickel prices to $10.98 per pound from $12.95 per pound year-on-year for the first half of 2023, the average price per pound remained at $10.39, higher than pre-pandemic levels, stated the MGB.
Meanwhile, due to reduced supply and sustained demand from stainless steel and electric vehicle batteries, experts anticipate a rise in nickel prices by year-end.
While China maintained its status as the primary trading partner for nickel, Indonesia, the world’s top nickel producer, emerged as the Philippines’ latest trading partner for the mineral.
Three mining projects—Agata Mining Ventures Inc., Libjo Mining Corp., and Vista Buena Mining Corp.—based in Caraga, made shipments to Indonesia totaling 102,100.72 DMT, valued at approximately Php 171.37 million.
Gold followed nickel, with a production value of Php 77.65 billion, representing 41.07% of the total metallic production, while an increase in the average price of gold was reported from $1,826.47 per troy ounce in 2022 to $1,932.07 in 2023.
Gold continued to exhibit rising production volumes from 21,631 kg to 22,935 kg in the July to September period.
Copper ranked third, contributing a 9.94% share valued at Php 18.79 billion, with a production volume of 195,553 DMT, up by 2% from last year’s 190,767 DMT.
Silver, chromite, and iron ore collectively accounted for Php 2.64 billion or 1.40% of the total production value.
Regionally, Caraga led in production value share at 31.93% or Php 60.36 billion, followed by MIMAROPA (Region 4B) at Php 25.56 billion and Cagayan Valley at Php 22.12 billion.
MGB also highlighted that Caraga remained significant in the country’s mining landscape, housing two gold mines, one chromite mine, 18 nickel mines, a hydrometallurgical processing plant, and a gold processing plant.
Throughout the nine months, the national government collected Php 5.09 billion in excise taxes and approximately P1.97 million in royalties from metallic mineral mining activities.
Currently, there are 21 existing mining projects within mineral reservation areas, consisting of 20 nickel mining projects and one chromite mining project.
