Copper output forecast to rise in the Philippines

The Philippine Chamber of Mines expects the country’s copper concentrate production to rise this year on the back of higher international copper prices and lower government taxes imposed on corporate earnings.

These factors already have caused two companies — Manila Mining and Lepanto Mining — to predict higher yields in 1995, Knight-Ridder/Tribune reports. Neither company would say how much it would be able to produce this year.

Other companies have indicated that they will be raising production, but also declined to give figures.

Higher international prices are pushing Philippine firms to speed up (in some cases, double) production, said the Chamber’s Deogracias Contreras. This would not be happening if international prices were down, he said, adding that companies often delay production when copper prices are low. Mining houses are being encouraged to increase production and earnings by a government move to slash taxes to 1% for copper and 2% for gold from the previous 5% of gross earnings, Contreras said.

The only company not expected to benefit from higher prices or the new excise tax is Atlas Consolidated Mining & Development. Once the Philippines’ largest copper miner, Atlas ceased operation a year ago and is restructuring its debts.

Contreras said Atlas could restart mining this year if it obtains a moratorium on debt payments. The moratorium is included in a provision in the proposed Philippine Mining Act, which is expected to be ratified soon. The act would award extra incentives to foreign companies looking to set up mining joint ventures in the Philippines.

If yields are high enough, Contreras said it was likely the Philippines would look to sell concentrates to countries other than Japan, whose smelters buy more than 80% of the country’s copper exports.

The country has received several requests from China and is looking to tap into that market as well, he said.