Photo credit: Bilyonaryo DMCI Mining Corporation recorded a 14-percent increase in first-quarter core net income from P477 million to P543 million, its highest for any given quarter. Revenues grew faster at 25 percent from P1.1 billion to P1.4 billion owing to higher nickel ore shipments and favorable foreign exchange rates. Despite the depletion of its Berong mine, DMCI Mining boosted its total shipments by 26 percent from 494,000 wet metric tons (WMT) to 620,000 WMT on the back of its robust beginning inventory of 389,000 WMT. “We had a very good start to the year. Unfortunately, without a second operating asset, it would be impossible to maintain our output,” said DMCI Mining president Tulsi Das C. Reyes. “Our main challenge now is securing the necessary permits to expand our operations,” he added. From January to March, total production plunged by 43 percent from 555,000 WMT to 318,000 WMT on the nil production of Berong Nickel Corporation (BNC) and 5-percent uptick in output of Zambales Diversified Metals Corporation (ZDMC), from 313,000 WMT to 318,000 WMT. Average selling price slipped by 5 percent from 1.37 to 1.30 as BNC sold lower-grade nickel amid higher shipments from ZDMC. DMCI Mining is looking to expand its mining operations by another 3,500 hectares, which have a potential nickel resource of over 200 million wet metric tons. Once fully permitted, these additional operating assets can sustain the company for at least 50 years.   Article courtesy of the Philippine Stock Exchange 

The metallic mineral production value kicked off the year with a 36.21% or PhP12.92 billion growth from PhP35.69 billion in Q1 2021 to PhP48.61 billion in Q1 2022. Once again the bullish metal price during the period pushed the industry to this optimistic performance, coupled with the increase in the mine production of gold, silver, and copper. Among the prices of metal, nickel was at an unparalleled level at US$28,089.77 per metric ton from a US$17,625.46 per metric ton, year-on-year,  more  than  59%  or  a  US$10,464  increase. Copper followed with an almost 18% growth from US$8,478.58 per metric ton to US$9,986.01 per metric ton, year-on-year while the yellow metal enjoyed a US$73 increase from US$1,801.86 per troy ounce to US$1,874.91 per troy ounce. We are seeing prices of metals at heights way beyond their pre-pandemic levels. In terms of contribution to the total production value in Q1 2022, gold took the spotlight with a substantial share of 45.74% or PhP22.24 billion. The collective values of direct shipping nickel ore together with its nickel products, mixed nickel-cobalt sulfide, and scandium oxalate took the second spot accounting for 39.64% or PhP19.27 billion. Meanwhile, copper followed with 12.98% or PhP6.31 billion while the shared output value of silver, chromite, and iron ore contributed 1.64% or PhP0.80 billion. Major mining hubs in the country include the following Regions: Caraga is host to 23 operating mines or about 42% of the country’s total with 20 nickel mines, 2 gold mines, 1 chromite mine, and 2 mineral processing plants (gold and hydrometallurgical); Regions III and VIII with both 6 mines; Cordillera Administrative Region with five; and Palawan province with 3 nickel mines and a hydrometallurgical processing plant. For the complete number of mines per Region refer to Figure 4. In terms of the number of mines by commodities, the country has 32 nickel, 12 gold, 4 chromite, 4 iron, and 3 copper a total of 55 large-scale mines. During the review period, however, 20 mines reported zero production due to unfavorable weather conditions most particularly in the area of Mindanao, while others were still under care & maintenance status or under suspension. Aside from these large-scale mines that are holders of Mineral Production Sharing Agreement, Financial or Technical Assistance Agreement (FTAA), and Mining Lease Contract, there are also small-scale mines in operation For the yellow metal, production volume and value in Q1 2022 grew by 15% and 29%, respectively from 6,214  kilograms with an estimated value of PhP17.29 billion to 7,137 kilograms with an estimated value of PhP22.24 billion, year-on-year. Among the producers, the Masbate Gold Project of Philippine Gold Processing & Refining Corporation (PGPRC) recorded the highest output with 1,859 kilograms with an estimated value of PhP5.79 billion followed by the Didipio Copper-Gold Project of OceanaGold (Phils) Inc. (OGPI) with 917 kilograms with an estimated value of PhP2.84 billion. The third was Co-O Gold Project of Philsaga Mining Corporation with 706 kilograms with an estimated value of PhP2.21 billion. While under the Minahang Bayan (MB) to this point only Loacan Itogon Pocket Mineral Association in Benguet reported production of 3.31 kilograms with an estimated value of PhP9.96 million. To date, out of the 49 declared MB 40 are for gold commodities. In terms of the total production value of gold, we saw the percentage growing at a more impressive rate at 29% which is almost double the percentage increase of 15% in volume. This can be accounted for the US$73 increase in price per troy ounce from  US$1,801.86  per troy ounce to  US$1,874.91  per troy ounce, year-on-year. Figure 5 illustrates, how the prices of the yellow metal  performed  prior to  and during  the  COVID-19  pandemic from CY2018 to Q1 2022. Experts see prices remaining bullish in 2022. In addition, in terms of the overall contribution to the country’s production value gold has once again taken the driver's seat from nickel at PhP22.24 billion in Q1 2022. Strikingly, covering the period  2012  up  to  2021  gold  has  taken  the  backseat  next  to nickel with the exemptions of 2016 and 2017 where it led. Prior to 2012,  historical  data  will  show  that  gold  has  always  dominated the country’s production value. For a refresher, in 2012 nickel and mixed nickel-cobalt sulfide for the first time outperformed gold mainly due to the overwhelming 94% slump in BSP gold purchases from small-scale miners/traders from 17,638 kilograms in 2011 to only 1,090 kilograms in 2012. This situation in 2012 seemed to be brought about by the collection by the Bureau of Internal Revenue (BIR) of the 2% excise tax and 10% creditable withholding tax from small-scale miners pursuant to Revenue Regulations No. 7-2008, dated 25 March 2008. In addition, on April 2, 2012, the BIR issued Revenue Regulation No. 6-2012. Said Regulation clarified the taxability of the sale of gold by any person or entity to another person or entity other than the BSP. A major provision in the said Regulation is the reduction in the  creditable  withholding  tax  from  10%  to  5%.  In  2019,  the government issued the policy, Republic Act No. 11256 (An Act to Strengthen the Country’s Gross International Reserves (GIR), amending the Purpose Sections 32 and 151 of the National Internal Revenue Code, as amended, and for Other Purposes). Salient features of said Regulation are the tax exemptions for the following transactions: (a) Income derived from the following sale of gold is excluded in the gross income and shall be exempt from income tax, and consequently from withholding taxes for the sale of gold to the BSP by registered SSMs and accredited traders and the sale of gold by registered SSMs to accredited traders for eventual sale to BSP; and (b) Excise tax shall not be levied, assessed and collected for the sale of gold to the BSP by registered SSMs and accredited traders; and the sale of gold by registered SSMs to accredited traders for eventual sale to BSP. General  outlook,  with  the  enactment  of  RA  No.  11256  and  the continuous declaration of MB the government remains confident that BSP gold purchases will grow. The sale of 25% of OceanaGold’s monthly dore to BSP as indicated in their FTAA will likewise boost the gold reserve of BSP. This initiative by the Mines Geosciences Bureau (MGB) will also provide the BSP with additional sourcing to strengthen the gold reserve of the country. The reported gold dore production of OceanaGold in Q1 2022 was 276 kilograms with an estimated value of PhP852 million. Along this line, for future Mineral Agreements and FTAAs, the MGB is looking into including in the Agreements the selling of a certain percentage of the Contractors dore production to BSP. The white metal stood tall as both production volume and value grew by 126% and 122% respectively from 5,603 kilograms with an estimated value of PhP225.55 million to 12,673 kilograms with an estimated value of PhP501.56 million. The entry of Balabag Gold- Silver Project of TVI Resource Development (Phils) Inc. in Zamboanga del Sur into the production scene was the main factor for this impressive showing. TVI accounted for almost 41% or 5,155 kilograms with an estimated value of PhP204.10 million of the country’s total silver production. While the former leader Apex Maco Operation of Apex Mining Corporation came in second with 2,966 kilograms with an estimated value of PhP116.43 million followed by Masbate Gold Project of PGPRC with 1,436 kilograms with an estimated value of PhP57.13 million. The initial production of TVI was made last September 2021. On nickel direct shipping ore production volume incurred a deficit of 9% while value went up 20%, from 4,077,507 dry metric tons with an estimated worth of PhP7.06 billion in Q1 2021 to 3,701,418 dry metric tons with an estimated worth of PhP8.45 billion in Q1 2022. Rio Tuba Nickel Mining Corporation led the pack with 1,028,119 dry metric tons followed by Taganito Mining Corporation with 451,265 dry metric tons. Consequently, of the 32 listed nickel mines about 44% or 14 mining projects reported zero production in Q1 2022 largely because of the unfavorable weather condition that prevailed in the region of Mindanao. In terms of production distribution by province, upfront was Palawan with 1,303,377 dry metrics tons. This was the combined output of Rio Tuba Nickel Mining Corporation and Citinickel Mines & Development Corporation. Trailing behind Palawan was Zambales Province with  1,144,889  dry  metric  tons,  all  5  nickel  mines  in  the  region recorded production. Agusan del Norte and Surigao del Norte grabbed the 3rd and 4th spot accounting for 560,906 dry metric tons and 485,200 dry metric tons, respectively. Other provinces with  mine  production  were  Surigao  del  Sur  with  168,269  dry metric  tons,  Davao  Oriental  with  33,314  dry  metric  tons,  and Dinagat  Island  Province  with  5,462  dry metric tons.     While Eastern Samar with two nickel mines and Isabela province with one nickel mine reported zero production in Q1 2022. Looking closely despite being down by 9% or 376,089 dry metric tons, production value went up by 20% from PhP7.06 billion to PhP8.45 billion, up by almost PhP1.40 billion. This growth was powered by the robust price of nickel during the period. As seen in Figure 6 prices were way above their pre-pandemic levels. In Q1 2022 it peaked at as high as US$37,790 per metric ton in March while in CY   2021   the   highest   monthly   average   price   happened   in December at US$20,070 per metric ton. Whereas the highest average  monthly  price  enjoyed  for  CY  2019  and  CY  2020  was US$17,663   per   metric   ton   and   US$16,807   per   metric   ton, respectively. Experts said that the factors that triggered this extraordinary hike were: (1) Investors’ concern over the conflict between Russia and Ukraine; (2) Supply chain disruptions; and (3) A short squeeze that pushed London Metal Exchange to halt trading for several days in Mid-March. For the rest of 2022 experts say that the demand for nickel will be fueled by the battery sector as battery producers and carmakers anticipate the transition to electric vehicles. In terms of nickel use by application stainless steel remains to dominate at about 74% while batteries are seen to be gaining ground at 11% in 2021 and are forecasted to grow to 13% this year experts say. On mixed nickel-cobalt sulfide production of Coral Bay Nickel Corporation and Taganito HPAL Nickel Corporation (THPAL), it went  down  by  4%  from  20,  239  dry  metric  tons  to  19,471 dry metric tons year-on-year. Production value, however, went up by as much as 41% from PhP7.61 billion to PhP10.71 billion, year-on- year, about a PhP3.10 billion increment. While production volume and value of scandium oxalate of THPAL grew by as much as 30% and 14%, respectively from 3,605 Dry-Kg with an estimated value of PhP91.14 million to PhP4, 694 Dry-Kg with an estimated value of PhP104.16  million,  year-on-year.  The  scandium  oxalate  is  a  by- product of THPAL’s operation. The red metal, which accounted for almost 13%, or PhP6.31 billion, of the total metallic mineral production value, enjoyed a sizeable increase in production volume and value of 20,791 dry metric tons and PhP2.98 billion from 44,050 dry metric tons with an estimated value of PhP3.33 billion to 64,841 dry metric tons with an estimated value of PhP6.31 billion, year-on-year. Toledo Copper Project of Carmen Copper Corporation in Cebu contributed 55%, or 35,423 dry metric tons, while in far second and last position were Didipio Copper-Gold Project of OGPI in Nueva Vizcaya, and Padcal Copper-Gold Project of Philex Mining Corporation in Benguet Province with 15,452 dry metric tons and 13,966 dry metric tons, respectively. The general growth in the production volume was primarily due to the re-entry of OceanaGold to the production-stream same period last year OGPI reported no production. In addition to OGPI’s output, the telling factor for the growth in production value was the upbeat price of copper from US$8,478.58 per metric ton to US$9,986.01 per metric ton year-on-year, up by US$1,507. Figure 7 exhibited the movement of the copper price before the onset and during the COVID-19 pandemic from CY 2018 up to Q1 2022. Copper has multiple uses and is seen as one of the most strategic commodities as far as metals go. Chromite production volume and value also went up during the period from 4,720 dry metric tons with an estimated value of PhP37.62 million to 18,036 dry metric tons with an estimated value of PhP161.83 million. Only Techiron Resources, Inc and Taganito HPAL Nickel Corporation reported production. The substantial growth was due to THPAL’s chromite input which incidentally is a by-product of their mixed nickel-cobalt sulfide operation. Krominco, Inc in Caraga remained under care & maintenance status. On iron ore, production volume and value increase from 15,898 dry  metric  tons  with  an  estimated  value  of  PhP45.31  million  to 44,133  dry  metric  tons  with  an  estimated  value  of  PhP131.66 million, year-on-year a difference of 28,235 dry metric tons and PhP86.35 million. This positive result was courtesy of Ore Asia Mining & Development Corporation located in Bulacan. Same period last year said company reported no production. The other producer located in Leyte Province was MacArthur Iron Project Corporation/Strongbuilt Mining & Development Corporation with 3,009 dry metric tons. While Vitali Iron Ore Mining Project of Atro Mining-Vitali Iron Inc. in Zamboanga del Sur still reported no production. Outlook on the local front, the MGB is aiming for the sustained development of the minerals sector and to this effect, the Bureau has planned a road map over the course of 18 years. This road map is divided into three phases: (1) Enhancing investors' confidence in the mineral sector (2022-2024); (2) Expanding domestic ore production and mineral asset (2023-2030); and (3) the Philippines to level-up to the global mineral markets in the field of semi-processed and fully processed mineral products (2026-2040). To  articulate  the  1st  Phase  -  Enhancing  investors'  confidence  in the mineral sector, the government has initiated game-changing and enabling policies like Executive Order No. 130 (Amending Section   4   of   E.O.   No.   79,   S.   2012,   Institutionalizing   and Implementing Reforms in the Philippine Mining Sector, Providing Policies and Guidelines to Ensure Environmental Protection and Responsible Mining in the Utilization of Mineral Resources); DAO No.   2021-25   (The   Implementing   Rules   and   Regulations   of Executive Order No 130); and DAO 2021-40 (Lifting of the Ban on the Open Pit Method of Mining for Copper, Gold, Silver, and Complex Ores in the Country Under DENR Administrative Order No. 2017-10, and Providing Additional Enhanced Parameters and Criteria for Surface Mining Methods). In addition, the Bureau is also stirring towards the following activities: Expanding the collection of geosciences and mineral information database both onshore and offshore; Identifying new mineral reserves; and Design mineral extraction to minimize environmental footprint. With the institutionalization of Phase 1, the government is optimistic about the realization of the 2nd Phase - Expanding domestic ore production and mineral asset, which targets to increase and attract mineral/mining-related investment to build up national economy. This would mean an expansion of the production capacity of existing mining projects and the entry of new players to the production bandwagon. Other specific programs under this phase are to bid out national government mining assets under Privatization Management Office and Philippine Mining Development Corporation within 3 years. Basay Mining Corporation, Maricalum Mining Corporation, and Nonoc Mining and Industrial Corporation are only some of the referred government mining assets. During this phase, the government would also like to see a much develop and expanded support infrastructure going to mineralized areas (roads, power, rails, communication technology, etc.). Also under this phase, the government would push for the construction of modular processing plants for value-added in the minerals sector. Finally for the 3rd Phase - the Philippines to level up to the global mineral markets in the field of semi-processed and fully processed mineral products. Under this phase, specific programs include: (1) The mandate of the establishment of mineral smelting and refining facilities, iron making industry, and nickel refineries this move is to expand the export of value-added mineral products; (2) Conduct research on the re-use of mining waste and tailings for other industrial use, mine rehabilitation, and acid mine drainage management using the Development of Mining Technology and Geosciences fund under the Social Development and Management Program; and (3) Build-up technical capacity both in the government institutions and private sector. During the 3rd phase, the government anticipates a full-blown downstream sector and the establishment and expansion of the upstream sector of the minerals industry. All things considered, the proper implementation of this roadmap would translate to growth in investment, trade, revenue, and employment opportunities. While these are all good reality check challenges currently facing the mining industry and investors include the following: High energy/fuel cost compared to other countries in Asia the Philippines has one of the most expensive power/energy costs; Big concern on peace and order situation in the remote areas where mining is being undertaken; Lack/limited support infrastructure going to mineralized areas like roads, power, rails, and communication technology; Low acceptability/popularity of mining in the country as a major source of livelihood and revenue for the national economy; Environmental footprints; and Concerns about the strength/stability in terms of policies related to mining, especially with the incoming administration   Article courtesy of the MGB

Photo credit: Celsius Resources Celsius Resources is pleased to announce its Philippine subsidiary Makilala Mining Company, Inc. has received further positive assay results from the ongoing drilling program at its flagship MCB copper-gold project. The results have confirmed and expanded a number of high-grade intercepts which are an important part of the early mine plan at MCB as defined in the recently completed scoping study. The high-grade positions are interpreted to exist over near to horizontal trends which extend away from multiple mineralised faults and breccia bodies which are the main conduits for the fluids that are coming up from a genetically related Tonalite intrusion. The confirmed presence of multiple high-grade zones now appears to extend further than previously defined, and is a positive and important outcome from what has now been discovered in both drill holes MCB-036 and MCB-037. The Company will now modify the next set of drill holes to focus around the additional shallow high-grade copper-gold mineralisation as it will have a positive impact on potential future production options in the mine schedule. To read more, click here.

Photo: South Cotabato Gov. Reynaldo Tamayo Jr. Photo from the South Cotabato provincial government Facebook page The South Cotabato government has created a Technical Working Group (TWG) to study the Sangguniang Panlalawigan's (SP) amendment to the province's environment code that lifted the open-pit mining ban. In an interview Friday, South Cotabato Governor Reynaldo Tamayo Jr. said his decision on whether to veto or not the lifting of the open-pit mining ban will depend on the TWG’S recommendations Tamayo said he has yet to receive the amended ordinance. Within 15 days, the governor can veto or approve the amendments to the province’s environmental code before it lapses into law. “An Ordinance Providing for the Environment Code of the Province of South Cotabato” was passed on June 9, 2010. “For now, I cannot say because I don’t want to preempt the decision and findings of the TWG, but I assure you that we are looking at what is good for everybody,” Tamayo said. In a meeting Thursday with Bishop Cerilo Alan Casicas of the Diocese of Marbel, who supported the open-pit mining ban, the governor said the provincial government must consider several issues and concerns before arriving at a decision. “Quarrying is part of an open pit, and what the SP approved in Lake Sebu is also an open pit. It will be contradicting if the open-pit mining ban will not be lifted,” Tamayo said. “We will sit again together with the Bishop and Sagittarius Mines, Inc.  (SMI) to talk about what is right or wrong, and it is important that I can come up with the decision two days before the deadline,” he noted. Meanwhile, Casicas said he hopes the governor will decide "based on the wisdom of the majority" of South Cotabato residents. During Thursday's meeting with the governor, the bishop led a group of some 3,000 protesters to the provincial grounds. “The most important factor is the wisdom of the people more than our voices and SMI,” Casicas said. Meanwhile, Board Member Ester Marin Catorce, an anti-mining advocate, denied the amended ordinance was recalled by the SP majority group. On Monday, 11 of 15 SP members approved the measure to lift the 12-year-old open-pit mining ban in the province. The SMI has been pursuing the Tampakan gold project in the province for years amid stiff opposition, primarily from the local Catholic diocese. By Roel Osano   Article courtesy of the Philippine News Agency

Photo credit: Sagittarius Mines Inc. Senator Francis Tolentino said the Tampakan copper-gold project being pushed to resume by Sagittarius Mines Inc. (SMI) in Tampakan, South Cotabato will be beneficial to local residents. Tolentino said on Thursday the Tampakan copper-gold project will be "cost-effective" and safe. "Cost effective yung extraction ng open-pit mining kasi mababaw lang ang paghuhukay niyan eh, makukuha agad yung mina (The open-pit mining extraction is cost effective because the excavation will be shallow and the mine will be easily extracted)," he said in "Sa Ganang Mamamayan" program of Net25. Tolentino, however, said the Department of Environment and Natural Resources (DENR) should see to it that the rehabilitation plan will be properly implemented. "Ang nakikita ko lang dito, ganon din siguro sa mga outlying communities, sundin yung rehabilitation plan kung meron man yung DENR. I-monitor naman ng DENR, huwag pabayaan ng DENR. Dapat nakatutok lagi sila. (What I can see here, just like maybe the outlying communities, follow the rehabilitation plan if DENR has. DENR should monitor, DENR must not ignore. They should always focus)," he said. After the Tampakan copper-gold project halted four years ago, President Rodrigo Roa Duterte signed in April 2021 the lifting of the moratorium on open-pit mining. The South Cotabato Provincial Board also lifted its ban on open-pit mining giving the SMI a go-signal to proceed with its stalled USD5.9-billion project. DENR Acting Secretary Jim Sampulna vowed they will ensure that SMI will comply with its rehabilitation obligations and environmental protection, assuring that the environment will not be sacrificed. "We will also require SMI to invest in equipment and manpower to ensure mitigation in case of any adverse impacts from the mining operation,” Sampulna said. According to SMI, the Tampakan project is noted as one of the largest untapped copper and gold minefields in Southeast Asia. The mining company expects the project to yield an average of 375,000 tons of copper and 360,000 ounces of gold per year. By Wilnard Bacelonia   Article courtesy of the Philippine News Agency

Photo credit: Apex Mining On March 4, 2022, Department of Environment and Natural Resources (DENR) Acting Secretary Jim O. Sampulna signed the DENR Administrative Order (DAO) No. 2022-04 entitled “Enhancing Biodiversity Conservation and Protection in Mining Operations”.  The Biodiversity Management Bureau (BMB) and the Mines and Geosciences Bureau (MGB) jointly drafted the said policy to provide adequate measures for responsible mining towards ensuring biodiversity conservation and protection including progressive and final rehabilitation of mined-out areas. It also aims to minimize negative impacts on biodiversity, thereby promoting the sustainable development and utilization of the country’s natural and mineral resources for the benefit of present and future generations. The said policy emanated from the 13th Meeting of the Conference of Parties (CoP) to the Convention on Biological Diversity (CBD) in December 2016, wherein it was identified that aside from agriculture, forestry, fisheries, aquaculture and tourism, other sectors such as energy, urban and regional planning, infrastructure, manufacturing industry and mining also negatively impact biodiversity.  Hence, as a commitment of the Philippines to the CBD and in response to the Strategic Plan for Biodiversity 2011-2020, the country developed various plans such as the Philippine Biodiversity Strategy and Action Plan (PBSAP) and included priority strategies in the Philippine Development Plan (PDP) to address the issue.  On December 9-10, 2020, the MGB and BMB jointly organized a two-day virtual consultation with large-scale and small-scale mining companies regarding the then-proposed policy. Various stakeholders of the mining industry participated in the said two-day virtual consultation composed of representatives from the Chamber of Mines of the Philippines; Philippine Nickel Industry Association; Philippine National Coalition for Small-scale Mines; DENR Regional Offices, BMB, MGB Central Office, and Regional Offices. A total of 187 and 54 participants attended during the two-day virtual consultation with large-scale and small-scale mines across the country, respectively. In addition, the said policy goes to a series of deliberation with the BMB, MGB, and DENR Policy Technical Working Group in 2021.  Accordingly, DAO No. 2022-04 identifies and recommends specific biodiversity-related measures that shall be undertaken in all stages of on-shore and off-shore mining operations. The following are the salient features of DAO No. 2022-04: Biodiversity measures shall be integrated in all stages of mining operations, including exploration, development, and utilization, and closure, decommissioning, and rehabilitation; Detailed guidelines on integrating biodiversity in small-scale mining shall be jointly prepared by BMB and MGB within one (1) year upon issuance of this Order; Mining companies shall integrate biodiversity conservation and protection in the Social Development and Management Program (SDMP); The Contingent Liability and Rehabilitation Fund Steering Committee (CLRFSC), Mine Rehabilitation Fund Committee (MRFC), and Multipartite Monitoring Team as per DAO No. 2010-21 shall include Biodiversity Management Bureau (BMB) and Ecosystems Research and Development Bureau (ERDB), and their regional counterparts as members; BMB, in consultation with MGB, shall subsequently develop modules and instructional materials on the integration of biodiversity in the mining sector; BMB and the Conservation and Development Division of DENR Regional Offices shall undertake annual monitoring and evaluation using compliance monitoring tools to be developed by BMB; and Mining Contractors, Permit Holders, and Permittees shall include biodiversity measures in their respective Environmental Work Programs, Environment Protection and Enhancement Program, Final Mine Rehabilitation and/or Decommissioning Plan, and Social Development and Management Program. DAO No. 2022-04 was published in The Manila Times and registered in the Office of National Registry on April 21, 2022. The full version of DAO No. 2022-04 can be accessed through this link: https://apidb.denr.gov.ph/infores/uploads/DAO-2022-04.pdf   Article courtesy of the Department of Environment and Natural Resources

Eleven of 15 members of the Sangguniang Panlalawigan of South Cotabato approved Monday the lifting of the ban on open-pit mining in Tampakan town. The copper and gold mine project in Tampakan is touted as the largest in Southeast Asia. (Photo courtesy of SP South Cotabato) The majority of the Sangguniang Panlalawigan (SP) members approved Monday the amendments to the environment code of South Cotabato province, particularly the provision on the lifting of the ban on open-pit mining in Tampakan town. Voting for the ban's lifting were SP board members Glezel Trabado, who acted as presiding officer in the absence of Vice Governor Vicente de Jesus, Larry de Pedro VI, chairman of the Environment Committee, Dardanilo Dar, Noel Escobillo, Antonio Fungan, Eamon Gabriel Mati, and Henry Ladot. Also backing the move were Indigenous Peoples’ Mandatory Representative (IPMR) Edgar Sambong, Sangguniang Kabataan (SK)Federation president Alaisa Marie Fale, Association of Barangay Captains (ABC) president Rolando Malabuyoc, and Philippine Councilors League (PCL) South Cotabato Chapter president Grace Achura. Board Member Ester Marin Catorce, who opposed the amendment and was designated by the Department of the Interior and Local Government (DILG) as acting governor, was absent during Monday’s regular session. “None of them objected, as acting governor by the rule of succession I cannot attend the session. Governor Tamayo is out of the country while Vice Governor Vicente De Jesus, who underwent an operation, was not present,” Catorce said. Catorce said she asked a colleague to defer the deliberation of the amendment because of the many issues that still need discussion. Her request, she said, was not granted. SP members Ellen Grace Subere-Albios and Jinky Avance-Samodal, who also both opposed the open-pit mining operation, were also absent in the regular session. Ordinance 04, Series of 2010, entitled “An Ordinance Providing for the Environment Code of the Province of South Cotabato,” was passed on June 9, 2010. In 2015, SP filed a resolution affirming the open-pit mining ban in the province. Pro-mining groups earlier said the open-pit mining ban in South Cotabato hampered the development of the copper and gold mine project in Tampakan, touted as the largest in Southeast Asia. Anti-mining groups, however, said the project endangered not only the environment but also the lives of residents. Sagittarius Mines Inc. has been pursuing the Tampakan gold project for years. By Roel Osano

Photo credit: Apex Mining Apex Mining Co., Inc. finished the first quarter of 2022 with consolidated revenues of P2.2 billion, a growth of 46.11% yoy. The growth comes from increased milling tonnage of 23.3% and increased gold grades of 19.7%, as well as, a 7% increase in selling prices. The ramp up in production volume is part of the planned increase from 2,000 tpd to 3,000 tpd. The mine and mill operation is ahead of budget production rate of 2,250 tpd for the year and has encountered better grades than expected. Net income for the first quarter stood at P645.5 million, a 131% increase yoy. Translated to earnings per share this is equal to P0.114 vs previous year’s number of P0.049. Meanwhile, the Mines and Geosciences Bureau Region 11 conferred the Safety Milestone Award to Apex Mining for recording 7,549,768 man-hours without lost time accidents between 11 March 2021 and 20 March 2022. Apex Mining also earned the Compliant Tenement Holder for CY 2021. Both honors were conferred to Apex Mining at the Stakeholders Forum held at the Grand Regal Hotel in Davao de Oro on 08 April 2022. The forum’s theme was, “Harnessing Disaster Resiliency Through Responsible Mining”. Also in March this year, Apex Mining’s fully owned subsidiary, Itogon-Suyoc Resources, Inc. (ISRI) received the Safety Seal from the Department of Labor and Employment-Cordillera Administrative Region (DOLE-CAR) — the first mining company in CAR to get the seal.   Article courtesy of the Philippine Stock Exchange 

Nickel Asia Corporation recently announced its unaudited financial and operating results for the three-month period ended March 31, 2022 with an attributable net income (net of minority interest) of P1.05 billion, an 80% increase from P584 million net income reported during the same period last year. Earnings before interest, tax, depreciation and amortization (EBITDA) amounted to P2.20 billion, a 30% increase compared to P1.69 billion in the prior year. “The global nickel industry continues to labor under a record deficit – with an even larger projected deficit this year as compared to the previous year”, remarked Martin Antonio G. Zamora, President and CEO of Nickel Asia Corporation (NAC; PSE: NIKL). “Coupled with continued strong demand for stainless steel and the accelerating trend in demand in the electric vehicle market, these factors have been beneficial to our metals and mining business”, he added. Although nickel ore sales volume decreased by 10%, from 2.65 million wet metric tons (WMT) in the first quarter last year to 2.39 million WMT in the same period this year, revenue from the sale of nickel ore increased 17% year-on-year, from P2.85 billion in 2021 to P3.32 billion in 2022, as the weighted average realized price of ore sold increased 22% from $22.21 per WMT last year to $27.03 per WMT this year. Breaking down the ore sales, the Company exported 651 thousand WMT of saprolite and limonite ore to Japanese and Chinese customers at the weighted average price of $46.90 per WMT in the first three months of the year, compared to 845 thousand WMT at $45.60 per WMT in the same period last year. Likewise, the Company delivered 1.74 million WMT of limonite ore to the Coral Bay and Taganito HPAL plants, the prices of which are linked to the LME, and realized an average price of $11.80 per pound of payable nickel. This compares to 1.81 million WMT at $7.96 per pound of payable nickel in 2021. Expressed in US Dollar per WMT, deliveries to the two HPAL plants generated $19.58 and $11.29 in the first quarter of 2022 and 2021, respectively. Furthermore, as a result of higher LME prices, the Company recognized gain from its equity share in its investments in the two HPAL plants in the amount of P305 million in the first quarter of 2022, a 166% increase compared to P115 million gain in the same period last year. The realized Peso to U.S. Dollar exchange rate for ore sales was P51.51 compared to P48.38 in the prior year. Total operating cash costs increased by 8% year-on-year to P1.67 billion from P1.55 billion in 2021. On a per WMT of ore sold basis, total operating cash costs increased to P701 per WMT compared to P583 per WMT last year. On the Company’s foray into the renewable energy business through Emerging Power, Inc., Mr. Zamora had this to say: “We remain on track to complete Phase 3B of the Subic Solar Project, which would bring its total capacity to 100MW by May of this year, and expect to begin work on Phase 4 towards the latter part of the year, leading to a total capacity of 200MW by 2024. Further, we have made significant headway with respect to our 1,000MW renewable energy pipeline.” Mr. Zamora added, “We continue to monitor extraneous factors such as the lockdowns in China that may affect the global supply chain and impact our businesses as well.”   Article courtesy of the Philippine Stock Exchange

Photo credit: Bilyonaryo OceanaGold Corporation reported its financial and operational results for the quarter ended March 31, 2022. Details of the consolidated financial statements and the Management Discussion and Analysis are available on the Company’s website. Gerard Bond, President and CEO of OceanaGold, said “OceanaGold has started the year strongly with the first quarter safely delivering record quarterly revenue and EBITDA and significant Free Cash Flow. This strong Free Cash Flow generation allowed us to achieve a 29% reduction in net debt and reduce our leverage ratio to 0.40 times. Our stronger balance sheet puts us in a solid financial position from which we can invest in attractive growth projects to create value for our shareholders.” “This quarter’s performance was underpinned by record quarterly gold production at our Haile operation in the United States and a very strong first quarter of full production at our Didipio operations in the Philippines. At Haile, we are continuing to see the benefits of operational and productivity improvements that began in mid2021. At Didipio, the operation achieved full underground mining rates at the end of the first quarter, ahead of schedule by nearly one quarter.” “Though there is a lot to celebrate in the quarterly results, we also know that there is a lot of work ahead of us to fully optimise the potential of the business. At Waihi, poor grade reconciliation at Martha underground had an impact on its quarterly performance. A grade control drill programme is currently underway to deliver improved resource definition and allow for more optimal mine planning and stope sequencing, which we expect will improve the performance of this orebody and mining operation overall.” “We also have a pipeline of organic growth projects that have the potential to create additional value for shareholders. Once we commence development of the underground mine at Haile, we believe we will begin to unlock the true upside potential of this orebody. Looking further ahead, Wharekirauponga (“WKP”) has the potential to be a significant, high-grade mine within our portfolio.” “We remain focused on safely and responsibly delivering on our production guidance for 2022, maximising Free Cash Flow generation and progressing the attractive growth options in our portfolio.” said Mr Bond. Operations The Company produced 134,035 ounces of gold and 3,510 tonnes of copper in the first quarter of 2022, representing a 26% increase in gold production compared to the previous quarter and a 61% increase when compared to the first quarter of 2021. The stronger quarterly production was driven by record quarterly production at Haile and a solid quarter of production at Didipio, partially offset by decreased production at Waihi. On a consolidated basis, the Company recorded an AISC of $1,084 per ounce on gold sales of 129,191 ounces and copper sales of 3,711 tonnes. AISC was 18% lower quarter-on-quarter with the benefits from a full quarter of operations at Didipio partially offset by increased sustaining capital investments. The Company’s AISC decreased 14% when compared to the first quarter of 2021, also due primarily to the inclusion of a full quarter of operations at Didipio. Haile delivered 60,249 ounces of gold, representing a record quarter for production. This represents an increase of 42% quarter-on-quarter and was mainly driven by increased mill feed, higher head grade and better gold recoveries. Year-on-year, this represents a 36% increase in production, resulting from higher mill feed, grade, and recovery. The higher grades were driven by ore sourced from Ledbetter Phase 1. First quarter AISC at Haile was $1,070 and cash costs were $567 per ounce sold. The Company expects the Supplemental Environmental Impact Statement (‘SEIS’) Final Record of Decision and receipt of subsequent operating permits to occur in the second quarter of 2022. The permits are necessary to allow underground mine development and expansion of the operating footprint to accommodate the construction of future PAG waste storage facilities and to allow increased water discharge rates. As previously guided, the ongoing delay in the receipt of the SEIS decision and associated permits continues to impact productivity at Haile, where mining rates are limited by additional material and water re-handling, reducing output and increasing costs. Upon receipt of the necessary permits, the Company expects an improvement in operational efficiencies and lower mining unit costs to be delivered progressively over a two-year period. An updated National Instrument (“NI”) 43-101 Technical Report for Haile was released 31 March 2022. The recently completed technical review assumed receipt of the necessary permits related to the SEIS by the end of the second quarter of 2022. Didipio produced 29,446 ounces of gold and 3,510 tonnes of copper, reflecting a 98% increase in gold production and 51% increase in copper production quarter-on-quarter. This represents the first full quarter of operations since the restart of production in November 2021. The underground mine achieved full mining rates at the end of the first quarter, ahead of schedule. Didipio’s first quarter AISC and cash costs were $40 per ounce sold and $26 per ounce sold respectively. An updated NI 43-101 Technical Report for Didipio was released 31 March 2022. Macraes produced 37,588 ounces of gold in the first quarter, a slight increase quarter-on-quarter and a 9% increase from the first quarter of 2021. Relative to the prior quarter, production increased on higher average head grade that was partially offset by lower mill feed and reduced gold recoveries. Macraes’ first quarter AISC and cash costs were $1,394 and $1,005 per ounce sold respectively. Waihi produced 6,752 ounces of gold in the first quarter, 43% lower quarter-on-quarter and 56% higher than the first quarter of 2021. The quarter-on-quarter decrease in production was attributed to lower ore tonnes and grade mined from Martha Underground, where mining was in areas of the resource with low resource definition and under-reconciled to the resource model in both grade and tonnes of ore. The Company estimates the under reconciliation accounted for approximately half of the negative impact during the quarter, with poor ground conditions in parts of the orebody and reduced workforce availability due to COVID-19 isolations also contributing factors. Results from the accelerated grade control drill program continued to update the resource models currently being used for mine planning. Grade control drilling to support mining for the remainder of 2022 and 2023 is expected to be completed progressively across the second and third quarters of 2022. This program is expected to better inform the detailed mine planning and design process, optimise the stoping sequence, reduce ore loss and deliver improved performance. Preparation for the lodgement of a consent application for the Waihi North Project, inclusive of WKP, continued to progress with environmental assessments nearing completion. The Company expects to lodge its formal consenting application, inclusive of stakeholder feedback, in the second quarter of 2022. The critical path for first production from the Waihi North Project remains the consenting process. Financial The Company reported record quarterly revenue of $285.7 million, reflecting a 37% increase quarter-on-quarter. The Company reported record quarterly EBITDA in the first quarter of $158 million, reflecting a 78% increase quarter-on-quarter on stronger gold sales volumes from Haile, Didipio and Macraes and higher average gold and copper prices received and lower unit costs, partially offset by lower sales at Waihi. First quarter 2022 EBITDA was 155% higher than the first quarter of 2021 related to resumption of operations at Didipio and increased gold prices. First quarter 2022 adjusted earnings after tax were $81.8 million or $0.11 per share which compared to $29.3 million in the fourth quarter of 2021 and $17.3 million in the first quarter of 2021. Cash flows from operating activities for the first quarter of $143.8 million exceeded the comparative quarters, driven by stronger EBITDA though partially offset by unfavourable working capital movements. Operating cash flow per share before working capital movements was $0.22 in the first quarter. The Company generated $63.2 million in free cash flow during the first quarter. As at the end of the first quarter Net Debt including equipment leases was $168.4m, which was $69.5m or 29% lower than at the end of December 2021. The Company had immediately available liquidity of $224.7 million, including $194.7 million in cash.   Article courtesy of Oceanagold Corporation

Photo credit: Bilyonaryo Atlas Consolidated Mining and Development Corporation (“Atlas Mining”) reported another record net income of Php1.22 billion for the first quarter of 2022 compared to the net income of Php420 million for the same period in 2021. Higher production and higher metal prices sustained the strong performance of Atlas Mining. The increase in metal prices continued in the first quarter this year where copper price increased by 16% from $3.93/lb to $4.56/lb and gold price from USD1,797/ounce to USD1,885/ounce compared to the same period last year. Atlas Mining’s wholly-owned subsidiary, Carmen Copper Corporation, reported higher copper production and shipments in the first quarter of the year compared to the same period last year due to higher tonnes of ore milled and higher realized grades. In the first quarter of 2022, copper metal production increased by 26% from 15.93 million pounds to 20.01 million pounds, due mainly to the 8% increase in milling tonnage from 4.22 million tonnes to 4.57 million tonnes and the increase in copper grades by 12% from 0.215% to 0.241%. Gold production increased quarteron-quarter by 22% from 5,346 ounces to 6,015 ounces while gold grades decreased from 5.77 grams/dmt to 5.34 grams/dmt. Accordingly, shipments were higher by 27% from 17.02 million pounds of copper metal in 2021 to 21.69 million pounds in 2022. Higher production and shipments supported by higher prices, pushed revenues to soar by 54% to Php5.49 billion from Ph3.57 billion. Cash costs increased by 50% from Php1.97 billion to Php2.94 billion, due to the increase in volume of shipments and production. Earnings before interest, tax, depreciation and amortization (EBITDA) was Php2.60 billion, 55% higher compared to Php1.68 billion in the same period of 2021. Core income was Php992 million in the first quarter of 2022 compared to Php579 million, 71% higher compared to the first quarter of 2021. Cash generated from operations enabled additional repayment of debt of US$45 million in the first quarter. With the partial repayment of certain loan, an accounting gain of Php464 million was recognized in the first quarter. According to Atlas Mining President, Adrian Ramos, “With sustained production, Atlas Mining continues to benefit from a strong metals market. We remain focused on keeping our operations resilient and efficient to ensure sustained and optimized earnings even under emerging challenging situations.”   Article courtesy of the Philippine Stock Exchange

Integrated energy company Semirara Mining and Power Corporation (SMPC) has completed its backfilling operations in Panian, once the largest open-pit mine in the Philippines. SMPC spent 11.5 million man-hours to fill the pit with over 452 million bank cubic meters (bcm) of earth material, which is enough to fill 217,000 Olympic-size swimming pools. “We are mindful of our twin role as stewards and government contractor. What we accomplished in Panian is proof of that,” said SMPC president and COO Maria Cristina C. Gotianun. Located in Semirara Island, Panian mine spans 400 hectares with topographic elevations that ranged from 300 meters below sea level (mbsl) to 30 meters above sea level (masl) during its mine life. 300 meters is roughly the height of a 90-story building. SMPC fully covered the pit in six years, way ahead of the original 10-year mine rehabilitation plan. Mine rehabilitation refers to the repair of land that was disturbed by mining activities. The company is now developing a science-based plan to reforest and restore the biodiversity in the area. Panian had a mine life of 16 years and generated P12.7 billion in royalties for the government and SMPC host communities. Of the total amount, P7.6 billion went to the national government while the Municipality of Caluya and Brgy. Semirara received P2.3 billion and P1.8 billion, respectively. P1 billion went to the Province of Antique. In September 2021, SMPC won in the ASEAN Energy Awards (Special Submission category) for its accelerated rehabilitation of South Panian pit, which is considered as the fastest of its kind and scale in the Philippines. SMPC completely filled North Panian with earth material last January, four months ahead of its committed date to the Department of Energy.

Photo:  Philex Mining Corporation (the “Company” or “Philex”), one of the oldest and largest gold and copper producers in Southeast Asia, and a leader in right and principled mining, generated Php676 million Core Net Income and EBITDA of Php1.182 billion for 1Q2022 due to higher operating revenues on account of higher sustaining Gold and Copper realized prices, stable production and managed operating cost and expenses. Production level in 1Q2022 was within plan and, coupled with higher realized prices for Gold and Copper, lifted operating revenues to Php2.720 billion, higher by 7.5% versus the same period in 2021. Blended realized Gold and Copper prices peaked in March at $1,887 per ounce and $4.59 per pound respectively, driving operating revenues in March to Php1.075 billion, the highest since January. Operating costs were almost the same level as in 1Q2021 at Php1.655 billion. Production Tonnage milled for 1Q2021 was 10% lower at 1.822 million tonnes from 2.025 million tonnes in 1Q2021 mainly attributed to unscheduled breakdown of mill equipment. Ore grades for Gold continue to be at the same level as in 1Q2021 while ore grades for Copper showed improvement over the same period in 1Q2021, mitigating the impact of lower tonnage in Copper production. Gold output for 1Q2022 was 9.8% lower at 12,097 ounces versus 13,413 ounces in 1Q2021. On the other hand, Copper output for 1Q2022 was 8.7% lower at 6.18 million pounds versus 6.77 million pounds in 1Q2021. Operating expenses and ebitda Total operating costs and expenses for 1Q2022 at Php1.655 billion were almost at the same level for the same period in 1Q2021 at Php1.647 billion. The increases in the purchase costs of materials and supplies as well as equipment parts were offset by the continued implementation of work programs in operations, leading to efficiencies in the usage of power and supplies. EBITDA generated for 1Q2022 at Php1.182 billion was 17% higher than the Php1.011 billion in 1Q2021. The Company continue to accumulate cash surplus at a level programmed to partly finance the development of Silangan project by way of additional and fresh cash equity infusion into its wholly owned subsidiary, Silangan Mindanao Mining Co. Inc. Outlook The current global commodity outlook points to sustained prices of Gold and Copper in the near to medium term. These sustained metal prices provide the Company with the ability to implement exploration and studies geared towards funding additional mineral resources/reserves within the current ore body and vicinity of the Padcal Mine. The Company continues to work with its financial advisors for the completion of the fund raising exercise to start the Silangan Project, subject to approval of relevant government and /or capital market regulators. The successful and timely conclusion of the funding exercise will pave the way for the timely development and start of commercial operations of the Silangan project by early 2025. The Company is set to actively commence the development of Silangan as soon as the funding sources would have been finalized and completed, which will be in the form of a rights offer, possibly debt and fresh capital infusion out of the cash reserves of the Company. “The first quarter of the year bore much promise that the mining industry, like the economy, was well on its way to full recovery with the tapering off of the global threat of COVID-19 and the relaxation of stringent quarantine and lockdown guidelines,” according to Philex president and CEO Eulalio B. Austin Jr. “The country, it seemed, was back in business and Philex continued to ride on the strength of sustained production and revenue levels, and took full advantage of the wave of increase in global metal prices. However, the current situation in Ukraine and its impact on the global supply chain and commodity markets makes us tread cautiously towards the remaining months of the year. We are still hopeful that the conflict in Europe will end soon enough. We move with caution and continue to assess and re-assess our plans and our strategies.” “We view the current global situation with guarded optimism,” according to Philex Chairman Manuel V. Pangilinan. “Though there are gains to be realized with the spike in the prices of gold, copper, and even nickel, the current tension that is unfolding in Ukraine might impact the country’s and the industry’s pursuit of recovery post-pandemic. If the conflict pushes inflation upward, it could affect the country’s economic growth.”   Article courtesy of the Philippine Stock Exchange

Photo credit: Global Ferronickel Holdings, Inc. Global Ferronickel Holdings, Inc. (FNI) is off to a strong start as Platinum Group Metals Corporation (PGMC) begins its shipment to customers in China with 53,700 WMT of low-grade nickel ore bound for Guangdong Century Tsingshan Nickel Industry Co., Ltd. (GCTNICL). PGMC is the second-largest value exporter of nickel ore in the country. It is a wholly-owned subsidiary of FNI. “We are upbeat that our mining operations at PGMC have been running seamlessly from the get-go. Weather permitting, we might be able to exceed this year’s target of 5.5 WMT consisting of 60% low-grade ore and 40% medium-grade ore,” said FNI President Dante R. Bravo. Around half of PGMC’s shipment target for 2022 has been slated for, and the rest will be open to other customers. PGMC has a general nickel ore supply contract with GCTNICL and Baosteel Resources International Co. Ltd. for 20 and 30 shipments, respectively. Prevailing market prices for all customers will be determined at the time of their individual order confirmation. “We remain bullish as demand from China continues to be strong, and nickel prices have been rising in recent years. And with current global events adversely affecting oil prices, there is a greater appreciation for electric vehicles, which use nickel for their rechargeable batteries,” said Mr. Bravo.   Article courtesy of the Philippine Stock Exchange

Photo: The Caraga Mineral Testing and Research Laboratory, the only mineral testing lab in the region, is expected to be fully operational by 2024. The facility is envisioned to provide highly equipped, accessible, and affordable analytical testing for mining companies in the region. (Photo courtesy of DOST Caraga Director Noel Ajoc) Despite being inaugurated last April 5, the Caraga Mineral Testing and Research Laboratory is not expected to be fully operational until 2024, an executive said Monday. "We are still in the process of acquiring equipment for the facility. If we (could) get the funds for this in 2023, it will fully operate in 2024. Environment-related tests would at least start in January 2023," Department of Science and Technology (DOST) Caraga Director Noel Ajoc told the Philippine News Agency in an interview. The equipment will be funded through the General Appropriations Act, and the requested budget for the equipment cost was PHP40 million. The PHP15-million facility was funded by the Department of Public Works and Highways-Caraga, according to Ajoc. "Once completed, this is the only mineral testing lab in Caraga. Caraga is number one in the country's mining industry," he said, citing Philippines Statistics Authority data. The facility, Ajoc said, will provide analytical services like metal content analysis in support of the mineral industry in Caraga. Mineral processing and metal extraction research will also be conducted in this facility. "We will do analytical tests on nickel and cobalt content of ores, gold content processed by small miners, and environment-related tests like heavy metals content. Once the equipment are acquired, extraction of metals like nickel, cobalt, chromium, gold, and copper from ore can also be done at the lab," Ajoc said. DOST Caraga will do the analytical services. Research and development (R&D), on the other hand, will be conducted by the DOST, higher education institutions, and student researchers. Meanwhile, in a taped report, DOST Secretary Fortunato de la Peña said the establishment of the Caraga Mineral Testing and Research Laboratory aims to provide highly equipped, accessible, and affordable analytical testing for mining companies in the region. "It is also envisioned to serve as a facility for the conduct of R&D related to the mining industry, including mining wastes and wastewater management," De la Peña said. The facility is located at the DOST regional office in Ampayon, Butuan City. By Ma. Cristina Arayata   Article courtesy of the Philippine News Agency