Low nickel prices depress first half PHL mining royalties by 14%

Royalties received by the Philippine government from mining companies fell by 14 percent to P577.55 million in the first half of the year, from P707.4 million as year earlier, the Mines and Geosciences Bureau (MGB) reported Thursday, citing low nickel prices as a major factor in depressing revenues from the extractive industry.

 

The collections in January to June were equivalent to 5 percent of gross market value of minerals extracted and produced in the Philippines.

 

"The drop in collections can be attributed to lower nickel prices for the period," said MGB Director Leo Jasareno.

 

Nickel producers reported lower incomes in January to June, citing lower nickel prices, the bureau noted.

 

The production of nickel sulphides and direct nickel ore shipments traditionally contribute a significant share to the value of Philippine metals production, accounting for P46.03 billion or 46 percent of the production value last year.

 

Royalty earnings from mineral reservation areas are expected to reach P1.17 billion this year, compared with P1.57 billion in 2012. 

 

Mineral reservation sites are in Zambales province in Region III and Surigao del Norte, Surigao del Sur and Dinagat Islands in Region XIII, according to MGB. – VS, GMA News