Metal value down 20% in 6 months
Othel V. Campos
Manila Standard
The value of metal production in the Philippines declined 20 percent in the first six months of the year to P33.97 billion from P42.52 billion year-on-year mainly dut to lower nickel output.
Data from the mining bureau show that nickel production dropped 44 percent to 2.3 million metric tons from 4.2 million MT, while value fell 75 percent to P3.1 billion from P12.17 billion because of a sharp drop in world nickel prices to $12.40 a pound from $20.31.
Nickel concentrate production was flat at 4.7 million MT.
Production of silver production, the country’s second- most precious metal, dropped 54 percent from 170 million kg. Value declined 51 percen to P348 million from P8.1 billion.
Chromite output fell 58 percent to 18.41 million MT from 44.4 million MT. Value dropped 49 percent to P87.7 million from P44.4 million.
Several chromite companies stopped operating due to the expiration of their permits. They include Heritage Resources and Mining Corp., whose permit expired March 2008; and Benguet Corp. with Consolidated Mines.
CRAU Minerals halted production due to its inability to sustain operations.
The only remaining chromite producer is Krominco Inc., whose operations is based in Surigao del Norte.
Gold production and value stayed robust.
Gold output rose 3 percent to 19,202 kg from 18,680 kg while value increased 19 percent to P22.9 billion from P19.3 billion.
The bureau cited the entry of Maco Gold Operation of Apex Mining Co. Inc. in Compostela Valley and the Enargite project of Lepanto Consolidated as major contributor to the growth of gold production.
Gold purchases of the Bangko Sentral ng Pilipinas from small-scale miners reached 15,551 kg, valued at P18.55 billion.
The government earlier said seven of the 63 priority mining projects would be commissioned by 2009.
These are Carmen Copper Corp., Oceana Gold, Coray Bay, Platinum Group; and Philsaga’s Banahaw gold project.
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