Philippines’ 9-Month Metal Output Value Increases by 7.28% Fueled by High Nickel Prices
Significant Growth in Metal Production
The Philippines witnessed a notable 7.28% year-on-year increase in metal production value, reaching P189.08 billion (approximately $3.4 billion) in the first nine months. The Mines and Geosciences Bureau (MGB) attributes this growth primarily to the robust performance of nickel ore and its byproducts, which contributed 47.6% to the total value, amounting to P89.99 billion (approximately $1.62 billion).
Nickel Ore Production on the Rise
Nickel direct shipping ore saw a significant volume increase of 24.08% year-on-year, totaling 28.9 million dry metric tons (DMT), valued at P53.54 billion (approximately $963.72 million). Caraga region, known as the nickel capital of the Philippines, dominated production with 17.75 million DMT.
Gold and Other Metals Contribute to Output
Gold accounted for a substantial 41.07% of the total metal output value, followed by copper at P18.79 billion (approximately $337.82 million). The combined value of silver, chromite, and iron contributed P2.64 billion (approximately $47.52 million). Notably, the price of gold saw a 5.78% increase, reaching $1,932.07 per troy ounce.
Shift in Prices Affecting Production
Despite a drop in nickel ore prices to $10.39 per pound, the overall value of metal production increased. Conversely, copper prices decreased to $3.9 per pound, yet its production rose by 2%.
Regional Contributions and Future Prospects
Cagayan Valley, Bicol, and the Davao region were significant contributors to gold production. The MGB anticipates a continued demand for critical minerals like gold, nickel, cobalt, copper, and iron due to the global shift towards renewable energy technologies.
Industry Outlook and Economic Impact
Analysts predict a positive future for the mining industry, driven by the global transition to renewable energy and electric vehicles. The anticipated recovery of China's economy could further boost the demand for critical minerals.
Expansion and Export Opportunities
The MGB forecasts an increase in demand for Philippine nickel ore due to supply concerns in Indonesia and expects 12 new projects to commence soon, potentially elevating exports amidst high global demand.
