Metallic mineral production value advanced by 5.73%, or PhP5.89 billion, from PhP102.75 billion in CY 2016 to PhP108.64 billion in CY 2017.   

The positive performance was due to the improved trend in world metal prices brought about by tight supply and robust metal demand.  The leading metals copper, nickel and gold all enjoyed upturns.  Prices were primarily driven by stronger demand from China’s infrastructure and manufacturing sectors coupled with supply disruptions in the world’s key copper and nickel mines.

The top gainers were the base metals copper and nickel with 23.29% and 7.57% growths, respectively.  From an average price of $2.20 per pound in 2016, copper price went up to US$2.72 per pound in 2017.  Nickel likewise grew from US$4.35 per pound to US$4.68 per pound year-on-year.   Gold followed suit, with its average price accelerating by about US$10.21 per troy ounce, from US$1,247.44 per troy ounce to US$1,257.65 per troy ounce, year-on-year.  

In terms of contribution to the country’s metallic production value of PhP108.64 billion in 2017, gold accounted for the lion’s share with 42%, or PhP45.63 billion, while the combined output of nickel direct shipping ore (DSO) and mixed nickel-cobalt sulfide (MNCS) took the second spot with 39%, or PhP42.67 billion, share.  In third, was copper with 18%, or PhP19.30 billion. The remaining 1%, or PhP1.04 billion, came from the collective values of silver and chromite.

As regards gold production, the Masbate Gold Project of Filminera Mining Corporation/Philippine Gold Processing and Refining Corporation in Masbate and Didipio Gold Project of OceanaGold Philippines Inc. in Nueva Vizcaya were at the forefront with 6,295 kilograms and 5,684 kilograms, respectively.  The combined gold output of the two Projects accounted for more than 53%, or PhP23.98 billion, of the country’s gold production value. 

Performance-wise, among the metals, nickel made the biggest comeback in 2017, closing-in on the contribution of the yellow metal, with a difference of PhP2.96 billion. In 2016, gold outperformed nickel by a whopping PhP7.21 billion.

It is significant to note that, from 2012-2015, the joint production value of nickel DSO and MNCS consistently took the top spot with a four-year average of about 49% of the total metallic production value. The highest recorded contribution made by nickel DSO and MNCS was in 2014 at 60%, or PhP85 billion.  However, in 2016 and 2017, gold outshined nickel due to a series of mine operation suspensions in nickel mines in Zambales and Palawan.   

Still on nickel DSO, out of the 30 nickel mines in the country, Taganito Mining Corporation (Claver Nickel Project) topped the list with 52,353 metric tons output.  Cagdianao Mining Corporation (Cagdianao Nickel Project) came in next with 37,231 metric tons. Platinum Group Metals Corporation (Cagdianao Nickel Project) came in third with 33,851 metric tons.  Thirteen nickel mines, however, reported zero production and this was attributed to the mines being under maintenance/care status or suspended operations due to environment-related issues. 

Production-wise, the following companies were the frontrunners in their sector: 

· For gold, Masbate Gold Project of Filminera Resources Corporation/Philippine Gold Processing and Refining Corporation in Masbate with 6,295 kilograms, or an estimated value of PhP12.81 billion;

· For silver, Apex Maco Operation of Apex Mining Company Inc. in Compostella Valley with 9,920 kilograms, or an estimated value of PhP0.27 billion;

· For copper concentrate, Toledo Copper Operations of Carmen Copper Corporation in Cebu with 35,470 metric tons, or an estimated value of PhP9.00 billion; and

· For nickel, Claver Nickel Project of Taganito Mining Corporation in Surigao del Norte with 52,353 metric tons, or an estimated value of PhP3.31 billion.

Being a country richly endowed with mineral resources, to date, the country hosts 50 operating metallic mines consisting of the following: 30 nickel; eight gold with silver as co-product; four copper with gold and silver as co-products; three chromite; and five iron mines.  These are in addition to the numerous small-scale gold mining operations across the country. 

On the recent developments in the minerals industry, Environment Secretary Roy A. Cimatu posed a challenge to the mining companies for their stanch commitment to responsible mining.  Along this line, the Secretary emphasized the five core principles of responsible mining, namely: 1) it should be people-oriented; 2) it should protect and enhance the environment; 3) it should protect the rights and welfare of indigenous peoples; 4) it should contribute its fair share to the national economy; and 5) it should be efficient, competitive and meet international standards. 

In addition to the commitment of the mining companies, Secretary Cimatu also challenged them to come-up with a measurable, concrete and definite action plan to bring these principles to light and to bring these abstract concepts into reality.  He conveyed said challenge in his speech during the 64^th Annual National Mine Safety and Environment Conference of the Philippine Mine Safety and Environment Association held in Baguio City on November 24, 2017.

In response, the Chamber of Mines of the Philippines (COMP) came up with a four-page document referred to as The Baguio Declaration, which embodies the five principles highlighted by Secretary Cimatu.  The COMP, together with the Secretary, signed The Baguio Declaration on December 15, 2017.

To demonstrate the government’s serious campaign against illegal mining operations and the protection of the environment in relation to mining operations, the Department of Environment and Natural Resources (DENR) issued the following Orders early this year:  1) DENR Administrative Order (DAO) No. 2018-01, “Creation and Establishment of a Satellite Office of the Mines and Geosciences Bureau in the Province of Dinagat Islands”dated January 18, 2018 and; 2) DENR Special Order No. 2018-53, “Creation of the National Task Force Mining Challenge (NTF MC)” dated January 26, 2018.

Relative to DAO No. 2018-01, it is important to note that out of the 50 operating mines in the country, 24 are located in CARAGA Region, composed of two gold, one chromite and 21 nickel mines.  The said Region is dubbed as the nickel hub of the country.  Of the 24 operating metallic mines located in CARAGA, 10 are in Dinagat Islands, of which nine are nickel mines and a chromite mine.

In relation to DENR Special Order No. 2018-53, the NTF MC was created mainly to strengthen the enforcement of existing laws such as Republic Act (RA) No. 7942 or Philippine Mining Act of 1995; Department Administrative Order (DAO) No. 2010-21 (Implementing Rules and Regulation of RA 7942); RA No. 7076 (People’s Small-Scale Mining Act of 1991), and DAO No. 2015-03 (Revised Implementing Rules and Regulations of RA No. 7076).  It also covers pertinent environmental laws, rules and regulations in the country.

• [Editor:王可]