Driven by price cuts and reduced mine output, the metallic minerals sector in the Philippines experienced a sluggish start to the year, with production value dropping by 12.76% in the first quarter as reported by the Department of Environment and Natural Resources (DENR).
Based on a recent report by The Manila Times, the Mines and Geosciences Bureau (MGB) of the DENR released data showing that the value of domestic metallic mineral production fell to PHP 51.81 billion from January to March, down from PHP 59.39 billion in the same period last year—a decrease of PHP 7.58 billion.
Gold led the sector, accounting for 52.01% of the total metallic production value at PHP 26.95 billion. Nickel ore and by-products followed at 33.78% (PHP 17.50 billion), with copper coming in third at 12.15% (PHP 6.30 billion). Silver, chromite, and iron ore together made up 2.05% (PHP 1.06 billion).
Gold production dropped by 14% to 7,178 kilograms (kg) from 8,381 kg in the previous year.
Philippines Gold Processing and Refining Corp. in Masbate was the top gold producer with 1,548 kg (PHP 5.77 billion), followed by OceanaGold Philippines Inc. (OGPI) with 818 kg (PHP 3.11 billion).
Meanwhile, the Bangko Sentral ng Pilipinas (BSP) also saw a 32% decline in gold purchases, from 3,012 kg to 2,043 kg, valued at approximately PHP 7.3 billion.
Despite geopolitical tensions in the Middle East, the MGB noted that gold prices are expected to remain strong throughout the year.
Nickel ore production reached 3.8 million dry metric tons (DMT) valued at PHP 7.63 billion, but the average nickel price fell from $11.78 per pound to $7.53.
Twenty-two nickel mines reported no production due to various factors, including weather conditions, being off-season, under care and maintenance programs, and low nickel prices. Increased rainfall in Caraga, the country’s nickel capital, particularly affected surface mining operations.
Copper production increased by 4% to 67,582 DMT from 64,730 DMT last year, but its value dropped by 3% to PHP 6.30 billion from PHP 6.50 billion. Silver production fell by 6% to 10,603 kg from 11,329 kg, although its value slightly increased from PHP 449.23 million to PHP 452.72 million.
Chromite production significantly increased from 20,496 DMT to 31,286 DMT, with its value rising from PHP 250.3 million to PHP 527.2 million.
Conversely, iron ore production declined by 26%, from 33,497 DMT to 24,864 DMT, dropping its value from PHP 110.5 million to PHP 82.05 million.
In the first quarter, the national government collected PHP 1.21 billion in excise taxes and approximately PHP 81.33 million in royalties from metallic mineral mining activities. The MGB highlighted that there are currently 21 mining projects within mineral reservation areas, including 20 nickel mining projects and a chromite mining project.
The Chamber of Mines of the Philippines (COMP) anticipates increased copper demand this year, driven by the global transition to green energy and constrained supply, with no new mining projects expected to start in the near future. This situation is likely to result in higher copper prices.
COMP also noted that global geopolitical tensions and the United States’ approach to inflationary pressures continue to influence gold prices. Despite these fluctuations, the long-term outlook for gold as an investment remains positive.
Additionally, a steady limonite market and interest from Indonesian smelters could boost the nickel industry.
