METALS production declined 6.7% by value during the first half amid soft nickel prices, according to the Mines and Geosciences Bureau (MGB).
In a report, the MGB said the value of production fell to P114.77 billion in the six-month period.
“The telling factor for this lackluster performance was the continued decline in mine output of gold and nickel ore, together with processed products mixed sulfide and scandium oxalate. Not to mention the sluggish price of nickel and other nickel products,” it added.
Gold accounted for 47.7% of the value or P54.79 billion, up 7% from a year earlier.
Nickel ore was valued at P44.38 billion, or 38.7% of the total. This represented a 22.6% decline from a year earlier.
Copper accounted for 11.6% of the value at P13.3 billion during the half. The combined output of silver, chromite, and iron accounted for P3.63 billion or 1.98% of the total.
The average price of gold increased 13.9% year on year to $2,203.5 per troy ounce, while nickel ore prices fell to $7.94 per pound in the first half from $10.4 a year earlier. Prices for copper averaged $4.02 per pound.
By volume, gold output slipped 6% to 14,187 kilograms.
The volume of nickel production declined 19.4% to 13.36 million dry metric tons (DMT).
“During the period, 11 nickel projects reported zero production,” the MGB said.
The production of silver ore slipped to 23,268 kilos from 23,319 kilos. Iron ore production fell 43.4% year on year to 31,798 DMT.
On the other hand, copper output rose 6.6% to 142,050 DMT, while chromite ore production rose 53.9% to 73,013 DMT.
The MGB said that the excise tax collected is estimated at P2.84 billion for the first half. — Adrian H. Halili