The value of the country’s metallic mineral production for the first quarter rose by 14.11 percent to P28.91 billion from P25.34 billion in the same period last year, the Mines and Geosciences Bureau reported (MGB).
The sustained bullish run of metal prices continued to boost mining firms’ revenues despite disruptions brought about by the pandemic, with gold, nickel and copper enjoying record prices.
MGB records showed that the price of the precious yellow metal averaged $1,802 per troy ounce, up from $1,584 a year ago.
Three-month averages for copper and nickel likewise grew by 50 percent and 38 percent, respectively, to $8,479 a ton and $17,625 a ton.
Overall, nickel continued to surpass gold as the sector’s main revenue driver, pitching in P13.62 billion worth of output, or about 47 percent of the entire mineral production for the period. Gold followed with P11.71 billion, or 40 percent, while silver, chromite and iron accounted for less than 1 percent of the total.
Fresh investments
“The big appetite of China for copper and nickel for its robust stainless and electric vehicle battery supply industries will still be the very backbone of the strong demand,” the MGB said.
“On the supply side, because of the COVID pandemic, the very likelihood of disruptions in mining production worldwide due to forced lockdowns and cut-down operating hours still loom. Tight supply vis-à-vis strong demand will certainly drive prices to increase,” it added.
Despite disruptions, local players, as well as the MGB, are anticipating fresh investments following the issuance of Executive Order No. 130. Over 100 mining applications were received by the MGB since the EO lifted the moratorium on the issuance of new mining permits.