THE metallic minerals sector saw a slow start this year, with production value down 12.76 percent in the first quarter, mainly due to price cuts and reduced mine output, the Department of Environment and Natural Resources (DENR) said.
Latest data released by the DENR's Mines and Geosciences Bureau (MGB) showed that the value of domestic metallic mineral production fell to P51.81 billion, or some P7.58 billion lower, in January-March from P59.39 billion a year earlier.
Gold led the total metallic production at 52.01 percent (P26.95 billion), followed by nickel ore and by-products at 33.78 percent (P17.50 billion).
Copper ranked third at 12.15 percent (P6.30 billion), while silver, chromite and iron ore together accounted for 2.05 percent (P1.06 billion).
The MGB said that gold production went down by 14 percent to 7,178 kilograms (kg) from last year's 8,381 kg.
Philippines Gold Processing and Refining Corp. in Masbate led the production of gold with 1,548 kg (P5.77 billion), followed by OceanaGold Phils. Inc. (OGPI) with 818 kg (P3.11 billion).
The Bangko Sentral ng Pilipinas (BSP), meanwhile, also saw a 32-percent decline in gold purchases, from 3,012 kg to 2,043 kg, with an estimated value of P7.3 billion.
With the ongoing geopolitical tensions in the Middle East, the MGB said that "gold prices are expected to remain upbeat during the rest of the year."
During the period, nickel ore production reached 3.8 million dry metric tons (DMT), with an estimated value of P7.63 billion. The average nickel price was also down by $4.25 per pound from $11.78 to $7.53, year on year.
"Twenty-two nickel mines reported no production mainly due to weather conditions, being off-season, being under a care and maintenance program, and low nickel prices," MGB said.
In Caraga, dubbed the country's nickel capital, increased rainfall during the first and fourth quarters, especially in January, affected mining operations as surface mining is vulnerable to wet conditions.
Copper production was recorded at 67,582 DMT or 4.0 percent higher than the 64,730 DMT posted last year, while estimated value dropped by about 3 percent from P6.50 billion to P6.30 billion year on year.
Additionally, silver's production contracted during the first three months of the year, with volume declining to 10,603 kg or 6 percent from 11,329 kg a year earlier.
The white metal's production value, meanwhile, managed to increase from P449.23 million to P452.72 million.
Chromite production increased significantly, from 20,496 DMT last year to 31,286 DMT valued at P250.3 million and P527.2 million, respectively.
Iron ore production declined by 26 percent from 33,497 to 24,864 DMT with a value dropping from P110.5 million to P82.05 million.
From metallic mineral mining activities during the quarter, the national government collected P1.21 billion in excise taxes and royalties of about P81.33 million.
"Currently, we have 21 mining projects located within the mineral reservation areas, 20 nickel mining projects, and a chromite mining project," the MGB said.
The Chamber of Mines of the Philippines (COMP) expects increased copper demand this year, driven by the global transition to green energy and constrained supply, as no new mining projects are set to commence in the next few years.
"This would likely result in higher copper prices, as can be seen in end-May 2024 compared to the same period last year," it said.
COMP also noted that the gold prices, driven by heightened demand from central banks globally, remained susceptible to fluctuations due to global geopolitics and the United States' approach to inflationary pressures.
"Nonetheless, the long-term prospects of gold as an investment and store of value are very positive," it added.
The chamber also said that a steady limonite market and Indonesian smelter interest could boost the nickel industry.
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