The Philippines' metallic production value went down by 23% from PhP140.15 billion in 2014 to PhP108.21 billion in 2015, lagging behind by PhP31.94 billion. This is the exact reversal of the almost 40% or PhP39.29 billion growth enjoyed in 2014.

The lackluster showing was due to the downward trend in world metal prices brought about by excess supply and weaker global trade. The leading metals like gold, silver, copper and nickel all incurred sharp declines.

The biggest losers were the base metals nickel and copper with shortfalls of 29% and 19%, respectively. From an average price of US$7.56 per pound in 2014, nickel price dipped to US$5.34 per pound, down by US$2.22. It is interesting to note that in February 2011 nickel was traded by as high as US$12.83 per pound. Since then nickel has dropped steadily. Similarly, copper price was down from an average price of US$3.06 per pound in 2014 to US$2.48 per pound.

The precious metals gold and silver posted 8.35% and 17.62% losses, respectively. Gold price declined from US$1,269.57 per troy ounce in 2014 to US$1,163.59 per troy ounce in 2015. Likewise, silver price dropped from US$19.08 per troy ounce in 2014 to US$15.72 per troy ounce in 2015.

In terms of contribution to the country's metallic production value of PhP108.21 billion, nickel direct shipping ore and mixed nickel-cobalt sulfide continued to dominate the top spot with 50.09% share, or PhP54.20 billion. Gold was in second spot with 31.64% contribution, or PhP34.24 billion; and copper with 17.48%, or PhP18.92 billion. The remaining 0.78%, or PhP0.85 billion, came from the combined values of silver, chromite and iron ore.

Despite lower metal prices, the precious metals gold and silver exhibited growths in their respective production records in 2015. Gold enjoyed 12% and 4% increases in volume and value, respectively from 18,423 kilograms, valued at PhP32.97 billion, to 20,643 kilograms, valued at PhP34.24 billion.

The key producers during the year were: 1) Masbate Gold Project of Filminera Mining Corporation/Philippines Gold Processing and Refining Corporation located in Masbate Province, 2) Didipio Project of Oceana Gold (Philippines) Inc. in Nueva Vizcaya Province; and 3) Co-o Gold Project of Philsaga Mining Corporation/Mindanao Mineral Processing and Refining Corporation in Agusan del Sur Province.

The production volume and value of silver likewise grew by 29% and 5%, respectively from 23,005 kilograms with an estimated value of PhP616.44 million in 2014 to 29,780 kilograms valued at PhP647.02 million in 2015.

The base metals nickel, copper, chromite and iron ore suffered setbacks both in production volume and value in 2015. The base metals are always vulnerable to economic slowdown mainly because they thrive on the degree of economic activities across the globe. As it is, China, which accounted for the largest metal consumption in the past 10 years or so, has resoundingly been reducing its demand for the said metals. China has been the country's major market for nickel, copper, chromite and iron ore. Both nickel direct shipping ore and mixed nickel-cobalt sulfide reported lower mine and plant output mainly because of the weakened global demand for the metal.

                                                                   Philippine Metallic Mineral Production
                                                                               CY 2015 vs CY 2014

     Value:  In PhP

To date, the country hosts 44 operating metallic mines consisting of the following: 1) 27 nickel mines, 2) six gold mines with silver as co-product, 3) three copper mines with gold and silver as co-products, 4) three chromite mines; and 5) five iron mines. These are in addition to the numerous small-scale gold mining operations.

Translating the mineral production output in terms of peso value, the top ten mining projects and mineral processing plants in 2015 were the following: 

FTAA - Financial or Technical Assistance Agreement
MPSA - Mineral Production Sharing Agreement
MPP - Mineral Processing Permit

LEO L. JASARENO
Director, Mines and Geosciences Bureau