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MANILA - The Philippines' metallic mineral output fell by at least a fourth in the first six months of the year.
In a report, the Mines and Geosciences Bureau said production declined by 26 percent to P51.2 billion in the January to June period, from P69.2 billion last year.
The bureau blamed the slump on the 95 percent drop in the gold purchases by the Bangko Sentral ng Pilipinas.
“Given the continuing high price of gold and the increasing number of small-scale mining areas, the decrease in gold purchases by the BSP clearly indicates that gold output is going to the black market and smuggling activities,” Leo Jasareno, MGB director, said.
He said gold purchases began sliding after the Bureau of Internal Revenue strictly enforced the 2 percent excise tax and 10 percent creditable withholding tax from the sale of gold by small-scale miners and traders.
The BSP deducts the taxes from small-scale miners and traders, and remits the same to the BIR. The central bank has five buying stations in Baguio City, Davao City, Zamboanga City, Naga City and Quezon City.
Jasareno said gold production nosedived to 8,382 kilograms valued at P18.18 billion, from 22,804 kilograms worth P44.52 billion last year.
The central bank's gold purchases accounted for 786 kilograms in the first half of this year, as against the 15,003 kilograms a year ago.
“In effect, the BSP gold purchases shared only a dismal 9.37 percent of the entire gold production, compared to 74 percent a year ago,” Jasareno said.
Amid the drop in gold, nickel emerged as the biggest contributor with a 44 percent share at P22.40 billion.
Gold output accounted for 35 percent at P18.18 billion, followed by copper at 18 percent or P9.02 billion.
The remaining 3 percent, or P1.61 billion, was shared by silver, zinc, chromite and iron.
Despite the first-half slump, the Department of Environment and Natural Resources is confident that the mining industry will bounce back.
“We see big mining projects in the pipeline, encouraged by the clearer direction the government is now taking in view of the issuance of E. O. No. 79 or the mining policy of the Aquino administration,” DENR Secretary Ramon Paje said.
Paje cited progress in the $300-million Didipio Copper-Gold Project of Oceanagold in Nueva Vizcaya and the $1.2-billion nickel processing plant of Taganito HPAL in Surigao del Norte.
Also seen to contribute to the country's future output is the $800-million copper-gold project of Goldfields Limited in Benguet, the $800-million Kingking copper-gold project of NADECOR in Compostela Valley and the $800-million Silangan copper-gold project of Philex Mining Corp. in Surigao del Norte.
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