The Philippine’s mineral production reached P63 billion in 2008 and this could rise to P74 billion this year, a report for the Philippine government has said.
In its Philippine Metallic Mineral Production report, the Mines and Geosciences Bureau said the country mined P62.89 billion worth of minerals last year. Precious metals accounted for P42.79 billion, with gold production reaching P42.57 billion and silver, P222 million. Base metals contributed P20.10 billion; nickel ore produced reached P7.51 billion; nickel concentrates, P6.45 billion; copper concentrates, P5.99 billion; chromite, P107.11 million and zinc, P39.49 million.
The government has yet to finalize its forecast for this year. Initial estimates, however, showed the value could reach as much as P73.69 billion, with gold still topping the list with P48.14 billion. Silver production could be worth P522 million.
Among base metals, nickel ore production is estimated to reach P5.76 billion; nickel concentrates, P9.87 billion; copper concentrates, P7.19 billion; chromite, P900 million and zinc, P1.3 billion.
Gold prices are seen to increase as economic uncertainty makes gold a safe investment. UBS recently raised its gold price forecast to $1,000 per ounce in 2009, from a previous target of $700 per ounce.
Nickel, which accounts for the bulk of the Philippines’ mineral production in terms of quantity, is also setto recover in value. Nickel prices have dropped to $4 per pound from about $14 a pound last year, but analysts put long-term nickel prices at $6 to $7 per pound.
Rusina Mining N.L.’s CEO Robert G. Gregory said prices could start recovering within the year. Low-cost mining operations would remain viable in the Philippines, he said.
Source: Inquirer, Manila
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