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01/08/2013 01:40
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14/05/2013 05:38
Hello everyone! Pasensya na, ngayon lang ako naka log in ulit![/color] Thanks sa mga nagpopost ng infos! I learned a lot! Keep it up Officers! Mabuhay![/color]

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24/10/2012 05:50
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Magandang araw sa Lahat. I'd like to ask if anyone here has a copy of the MGB Memorandum Order No. 2011-03 on the implementation of the NATIONAL GREENING PROGRAM for mining companies.

Copper


I. Introduction

Copper has been one of the most important materials in the development of civilization and is known to have been used for at least 6,000 years. The modern history of copper begins with the discovery of electricity and the multitude of electrical based inventions that followed. Where the standard of living is high in the world today so is the consumption rate of copper. The predominant use of copper is in electrical equipment and supplies.

Because of their corrosion resistance, copper and its alloys have many uses in the construction, aircraft and marine industries. Copper is widely used in brakeline tubing because of its superior resistance to salt used in highways. Copper alloys are used in corrosion-resistant vessels and tanks, saltwater piping, shipboard condenser water lines and other constructional systems requiring high strength and corrosion resistance. Desalinization plants use copper alloy heat exchangers.

Non-electrical applications include industrial machinery and parts, household and commercial air-conditioning equipment and farm machinery. Construction uses include roofing, downspouts, gutters, nails, rivets, soldering coppers, welding torch tips, screws, glass and metal seals, and heating, cooling and water carrying tubing. In addition to the proliferation of electrical and electronic uses in the automobile industry, copper is also used in radiators, brake linings and tubes, air-conditioning gaskets, bearings, bushings, carburetors, oil lines and special construction parts.


II. Product Description

The broadest commercial classification of copper is related to the method by which it is refined, that is, electrolytic, fire-refined, or electrowon copper. Electrolytic copper is that refined by electrolytic deposition, fire-refined is refined from smelter copper by using only a pyrometallurgical process, and electrowon copper is copper directly deposited as a cathode from copper-bearing solutions. These solutions may be obtained by leaching copper-bearing material and then increasing the copper concentration by solvent extraction. Refined copper is melted and cast into various refinery shapes for consumer use. During melting of the copper, the amount of oxygen absorbed is critical with respect to the physical properties of the metal. Accordingly there are three basic classes of commercial copper, distinguished by the methods employed for control of oxygen: (1) touch-pitch copper, electrolytic or fire-refined copper cast in refinery shapes and containing a controlled quantity of oxygen (0.02 to 0.05 %) as coprous oxide; (2) oxygen-free copper, refined copper cast under a deoxidizing atmosphere that eliminates all coprous oxide without the use of metallic or meralloidal deoxidizers; and (3) deoxidized copper, refined copper freed from coprous oxide through the use of deoxidizers.

Copper-base alloys are produced by ingot makers, principally for use by foundries and brass mills for the production of rolled extruded, and forged products. Chief among the copper-base alloys are the brasses; zinc is the main alloying metal. Other copper-base alloys include the copper nickels, the nickel silvers (partial substitution of nickel for zinc in brass), beryllium coppr, cadmium copper and tellurium copper.


III. World Supply and Demand Situation

A. Mine Production

America is noted to have the richest mineable copper deposit in the world recorded at 7.68 million metric tons (MT), which is more than 62% of the total mine production for 1999 (see Table 1). Leading producers like Chile and U.S.A at 4.38 million MT and 1.59 million MT, respectively were also noted in the same region. Combined mine production of Europe, Asia, Africa and Oceana accounts for about 48% for the same year which is minimal compared to that of America?s annual contribution.

Mine production has been growing annually at an average growth rate of 3.3% for the past ten (10) years from 1990 to 1999. The highest annual growth was noted in 1996 at 9.1% or 11.1 million MT. This was followed by 1998 at 6.9% growth, or 12.3 million MT. The highest mine production was recorded in 1999 at 12.36 million MT.


Table 1. World Copper Mine Production by Region, 1995 to 1999
Unit: In Thousand Metric Tons

Country
1995
1996
1997
1998
1999
Europe
1,405.2
1,432.0
1,376.1
1,389.7
1,342.5
Africa
640.0
634.5
619.6
648.1
502.5
Asia
1,674.8
1,705.1
1,871.7
2,167.9
2,179.0
America
5,856.5
6,596.2
6,957.4
7,321.8
7,678.8
Oceana
591.2
734.7
669.5
758.6
660.9
Other Countries
12.0
-
-
-
-
World Total
10,179.7
11,102.5
11,494.3
12,286.1
12,363.7

Source: World Metal Statistics
1994 (June '99 WMS); 1995 (Jan. '00 WMS Version 2); 1996-99 (Mar. '00 WMS)
Note: This table shows the recoverable copper content of ores and concetrates produced.
Starting 1995, USSR will not be shown instead countries comprising under this will be considered.
+ 1997 to 1999 Preliminary data
--- nil



B. Production of Refined Copper

In terms of world production of refined copper by region, America ranks the highest at 4.0 million metric tons or 44.9% of the world total for 1999 (see Table 2). Chile and U.S.A are the top producers from the same region, contributing 2.7 million metric tons and 2.1 million metrics tons, respectively. Likewise, top producers from Asia, such as Japan and China, posted as much as 1.3 million metric tons and 1.0 million metric tons, respectively.

Production of refined copper grew at an annual average growth rate of 2.9% from 1990 to 1999. The highest growth periods were noted in 1996 at 7.8% and in 1997 at 6.7%. The highest refined copper production was recorded in 1999 at 14.3 million metric tons (MT).


Table 2. World Refined Copper Production by Region, 1995 to 1999
Unit: In Thousand Metric Tons

Country
1995
1996
1997
1998
1999
Europe
2,754.1
3,078.2
3,165.0
3,124.7
3,029.3
Africa
501.7
501.3
514.0
478.1
411.0
Asia
3,276.2
3,413.7
3,637.7
3,862.2
4,016.3
America
5,014.5
5,430.7
5,996.4
6,397.0
6,425.3
Oceana
266.0
311.4
271.1
285.0

419.0
Other Countries
-
-
-
-
-
World Total
11,812.5
12,735.3
13,584.2
14,147.0
14,300.9

Source: World Metal Statistics
1994 (June '99 WMS); 1995 (Jan. '00 WMS Version 2); 1996-99 (Mar. '00 WMS)
Note: The table shows production of refined copper, whether electrolytic or fire refined. It includes production from blister, anodes and other primary materials together with secondary production from scrap and other similar materials. It does not include copper recovered from secondary materials by applying remelting.
Starting 1995, USSR will not be shown instead countries comprising under this will be considered.
+ 1997 to 1999 Preliminary data
--- nil


C. Consumption of Refined Copper

Consumption of refined copper grew at an annual average growth rate of 2.8% from 1990 to 1999. The highest annual growth was noted in 1996 at 6.4% and lowest in 1991 at a negative annual growth of 0.9% (see Table 3).

The major consumer of refined copper in 1999 was noted in Asia at 5.2 million metric tons, or 37.4% of the world consumption. This was followed by America at 4.2 million metric tons, or 30.5% and Europe at 30.1%, or at 4.1 million metric tons.

The top four (4) countries comprising the leading consumers of refined copper in 1999 were U.S.A. at 3.0 million metric tons, China and Japan both at 1.3 million metric tons, and Federal Republic of Germany at 1.2 million metric tons.


Table 3. World Refined Copper Consumption by Region, 1995 to 1999
Unit: In Thousand Metric Tons

Country
1995
1996
1997
1998
1999
Europe
3,975.6
3,829.1
4,015.2
4,272.9
4,186.1
Africa
115.4
112.1
117.8
110.3
104.0
Asia
4,607.5
4,831.2
4,992.3
4,842.9
5,204.7
America
3,279.1
3,458.5
3,729.1
4,006.5
4,233.1
Oceana
174.3
169.8
166.3
161.3
172.9
OtherCountries
-
-
-
-
-
WorldTotal
12,151.9
12,400.7
13,020.7
13,393.9
13,900.8

Source: World Metal Statistics
1994 (June '99 WMS); 1995 (Jan. '00 WMS Version 2); 1996-99 (Mar. '00 WMS)
Note: This table shows consumption of unwrought refined copper whether refined from primary or secondary materials. The direct use of copper in the form of scraps is excluded.
Starting 1995, USSR will not be shown instead countries comprising under this will be considered.
+ 1997 to 1999 Preliminary data
--- nil



D. World Copper Price

World copper prices for the past ten (10) years from 1990 to 1999 were basically at a declining trend. This was reversed in 1995 when world price posted a 24.6% increase from 111.0 5c/lb in 1994 to 138.33 c/lb in 1995. The highest decline in world copper price was noted between 1997 and 1998, from 103.22 c/lb to 74.97 c/lb or a negative growth of 27.4%.

This negative trend was due to the economic recession that hounded most economies throughout the nineties. The prolonged depressed state has played havoc to the supply and demand pattern.

The gap in supply and demand occurred during the period since there was an increase in mineral production as major markets were contracting. Mining firms all over the world started adopting new technologies that increased capacity utilization rates resulting to the surplus.


Table 4. World Copper Price (London Metal Exchange)
Unit: In US Cents per Pound

US Producer Price
Year
Average
High
Low
Value (¢/lb)
Growth Rate (%)
1995
138.33
24.57
149.28
124.58
1996
109.21
(21.05)
133.44
90.19
1997+
103.22
(5.48)
123.37
77.06
1998+
74.97
(27.37)
85.27
65.23
1999+
71.38
(4.79)
83.73
61.42

Source: World Metal Statistics
1994 (June '99 WMS); 1995 (Jan. '00 WMS Version 2); 1996-99 (Mar. '00 WMS)
+ 1997 to 1999 Preliminary data



IV. Philippine Copper Industry

A. Historical Background

Mining for copper in the Philippines dates back to the 14th century when crudely smelted copper was traded by the Chinese. Significant production did not start until 1842 when the San Remegio Copper Mines, Inc. opened the Carawisan Mine in Antique. This was followed by Mankayan Mine in Benguet that was operated by the Contrabro-Filipino Co. from 1864 to 1874.

The American took little interest in the metal up until 1936 when the Mankayan Mine was reopened. Soon in 1939, the Hixbar Mine in Rapu-Rapu Island, Albay was put into production. These two mines accounted for all the copper produced in the Philippines before World War II.

The years after the war saw a rapidly emerging interest in copper and other base metals, almost at the expense of gold, which was plagued with depressed prices and mine rehabilitation problems. For its high-grade copper ore, the Lepanto Consolidated Mining Company reopened Mankayan Mine in 1948. New technologies were introduced for the economic extraction of large low-grade porphyry copper deposits. Thus, Atlas Mine in Cebu started production in 1955, followed by the Sipalay Mine in Negros in 1957, and Sto. Tomas II Mine in Benguet in 1958.

By the 1960?s, a full-blown copper boom dominated the mining industry. The boom was accompanied by extensive exploration activities, which led to the discovery and opening of new porphyry copper mines such as Sto. Ni?o Mine in 1971 and Boneng-Lobo Mine in 1974. By 1974, 18 copper producing mines were in operation.

The latter part of the 1970?s saw some of the newly opened copper mines struggling against high inflationary trends, high cost of money, and marginal ores. Ino-Capayang and the nearby Mogpog Mine of Consolidated Mines Inc. in Marinduque were thus forced to stop operation in 1978 and 1981. This was followed suit by the closure of Boneng-Lobo and Sto. Ni?o Mines in Benguet. Despite these indications of trouble, however, several new mines managed to start operation. Basay Mine in Negros, Dizon Mine in Zambales, Sabena and North Davao Mines in Davao del Norte, and Hercules Mine in Ilocos Norte opened between 1979 and 1981.

During the early 1980?s the Philippines had 20 primary and secondary copper producers. However, due to the sluggish economic and political condition in the country, coupled with the outdated mining laws and regulations, most companies were forced to either scale down or shutdown its mining operations. At the turn of the decade only seven (7) copper mining companies operated in the Philippines. Finally in 1999 only three (3) were left in operation.

B. Philippine Copper Reserves

Copper reserve was estimated at 4.79 million metric tons in 1996. The biggest deposit was found in Cordillera Autonomous Region that is estimated at 1.83 million metric tons followed by Region 7 at 1.15 million metric tons.


Table 5. Philippine Copper Reserves by Region, 1996

Region

Estimated Reserves*
(Metric Tons)

Average Grade
% Cu

CAR

1,831,778,000

0.49

I

11,715,000

0.80

II

210,733,000

0.50

III

79,449,000

0.36

IV

575,007,000

0.44

V

3,046,000

1.82

VI

774,553,000

0.43

VII

1,148,378,000

0.42

VIII

34,525,000

0.75

IX

137,000

2.18

XI

120,199,000

0.41

PHILS

4,789,520,000

 


Source: Summary of Philippine Metalic Mineral Reserves, MGB
Note: Estimated reserves is the arithmetical summation of positive, probable and possible reserves. These are indicative figures and cannot be used in feasibility studies.



C. Philippine Copper Production

Production of copper decreased from 698.17 dry metric tons (DMT) in 1990 to 151.22 dry metric tons (DMT) in 1999. The years 1992 and 1993 posted an increase in volume from 491.75 dry metric tons (DMT) to 526.22 dry metric tons (DMT), or at a rate of 8.0%, due to the increase in production of Marcopper Mining Corporation?s San Antonio Project and Maricalum Mining Corporation.

As of 1999, there were three (3) remaining primary producers, namely: Philex Mining Corp., Maricalum Mining Corp. and Manila Mining Corp. Of the three (3) producers, Philex Mining Corp. ? Padcal Project located at Benguet, contributed 64.44% to the total copper production amounting to 1,382.62 million pesos or 82.294 dry metric tons (DMT).


Table 6. Philippine Copper Production, 1995 - 1999

Year

Volume
(in Thousand DMT)

Value
(in Million Pesos)

1995

398.95

5,786.38

1996

256.51

3,364.29

1997

187.64

2,792.22

1998

177.87

2,753.49

1999

151.22

2,146.95


Source: Mineral News Services, MEIPD, MGB



D. Prices

The price of Philippine copper (metal) had been fluctuating between a low of P44,793/DMT in 1993 to a high of P66,803/DMT in 1995.

In terms of year-to-year growth, the highest was recorded between 1994 to1995 at an increase of 27.99%. Likewise, a negative growth of 14.27% was noted between 1995 to 1996.


Table 7. Average Price of Philippine Copper (Metal) 1995 - 1999
Unit: In Peso per DMT

Year

Average Price

Growth Rates (%)

1995

66,803.00

27.99

1996

57,273.00

(14.27)

1997

61,048.00

6.59

1998

60,112.20

(1.53)

1999

65.616.40

9.16


Source: Mineral News Services, MEIPD, MGB



E. On-going Exploration Activities

Exploration activities are a significant factor in the development of the mining industry because these will determine the quantity and quality of mineral deposits that could be mined economically. These will also decide the course and direction of the future mining activities in the country.

Among the more significant discoveries are:

1. Tampakan Copper Project (WMC Phils., Inc.) This is a porphyry copper deposit located in Tampakan, South Cotabato, currently covered by an FTAA. The deposit was estimated to contain 23 billion pounds of copper and 8-13 million ounces of gold that may be worth at least $10-20 billion.

2. Dinkidi Copper-Gold Project (Climax-Arimco Mining Corp.) This project, located in Didipio, Nueva Viscaya, is covered by an FTAA. It has a blocked reserve of 124 million tons of ore at 1 gram gold per ton and 0.4% copper.

3. Boyongan Project (Philex Gold Phil./Anglo-American) This is a porphyry copper-gold located Bgy. Boyongan, Placer, Surigao del Norte. A drilling program was undertaken in 2000 designed to test for a porphyry system under Quaternary Lavas and sediments. Analysts see this as a possible catalyst to boost interest, enthusiasm and liquidity in the resources market.

4. Rapu-Rapu Polymetallic Project (Ungay-Malobago/Lafayette) The property is located at the southern portion of Rapu-Rapu Island, Rapu-Rapu, Albay. The company foresees to operate a modern mine with an initial life of seven years open pit operation and an annual production of 800,000 TPY.

5. King-King Copper-Gold Project (Benguet Corp.) The MPSA area is located in Pantukan, Compostela Valley province. As of 2000, a total of 276 diamond and reserve circulation drill holes have been drilled indicating a total resource of 749 M tons of ore averaging 0.387% total Cu and 0.432 g/t Au, based on a cut-off grade of 0.20% total Cu.

6. Runruno Project (Placer Dome) Through its local subsidiary Greenwater Mining Corp., its company plans to condruct drilling activities upon completion of geological and geophysical surveys.


Bibliography
U.S. Department of Interior, Bureau of Mines. Mineral Facts & Problems (1985 Edition)
World Bureau of Metal Statistics. World Metal Statistics, 1999.
Mines and Geosciences Bureau. Mineral News Services, 1999.
Mines and Geosciences Bureau. Philippine Mineral Reserves, 1996.
Collado, Marjorie. ?Copper Profile?. Mineral Division, Mines and Geosciences Bureau, 1997 (Unpublished).


Source : 2000 Report, Mineral Economics Information and Publications Division - Mines and Geosciences Bureau.


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