Mining

Media

Part of The American Chamber of Commerce Journal

Title: Mining
Creator: Brimo, Henry A.
Language: English
Year: 1954
Rights
Fulltext: It is expected that by the time of the next report, conditions may have become more normal. More equip ment may be available. Traders will have made their decisions to replace short stocks as well as to dispose of holdings held because of the anticipated rise in price of some of our export commodities. Mining By Henry A. Brimo President Philippine Gold Producers Association, Inc. ACTING with dispatch, President Magsaysay, during February, in the short period of sixteen days, ap pointed two committees toendeavor to find a solution to the problems confronting the gold producers. On Feb ruary 4, a committee of five, namely Messrs. Salvador Araneta (Chairman), Governor Miguel Cuaderno, Alfonso Calalang, Eduardo Romualdez, and L. S. Virata, was appointed and it held a single abortive meeting without reaching an agreement. At this meeting, Deputy Governor of the Central Bank Dr. Castillo represented Governor Cuaderno, while Mr. Virata, being abroad, was absent. Subsequently, on February 20, the President appointed a second committee composed of ten members, namely, Messrs. Salvador Araneta (Chairman), Governor Cua derno, Alfonso Calalang, Charles B. Foster (Lepanto’s General Superintendent), Judge Haussermann, Sixto Orosa Jr., Servillano Aquino (a mining engineer), Antonio D. Garcia of Baguio, Luis I. Lardizabal, Baguio attorney, and Benjamin Gozon, Director of Mines. On February 23, the first meeting of this second com mittee was held at the office of Secretary Salvador Araneta, attended by all members, at which the undersigned was present upon invitation of Chairman Araneta. At this first meeting, the members were unanimously in favor of. additional, positive, and immediate help to the gold producers. They discarded the Gold Certificate Plan because of Governor Cuaderno’s opposition and because it was not possible to put it in action without legislation. There remained only some sort of subsidy SUMMARY OF MINERAL PRODUCTION IN THE PHILIPPINES Calendar Year 1953 BUREAU OF MINES Minerals Quantity Value in Pesos Totals Metallics: Gold................................. 480,625 oz. ?49,672,584“ Silver................................. 572,046 ” 892,807 P50.565.391 Lead (metal)................. 2,434 m.t. P 1,369,487 Zinc (metal)................... 747 ” 410,973 Copper (metal) .............. 12,715 ” 14,901,911 Manganese Ore............. 21,508 ” 1,415,063 Chromite Ore: Refractory............. 468,549 ” 14,056,470 Metallurgical......... 88,541 ” 5,771,093 Iron Ore.......................... 1,217,864 ” 23,242,677 P61.167.674 Non-Metallics; Cement............................ 1,741,185 bbls. P22.050.754 Gypsum.......................... None None Coal................................... 154,905 m.t. 3,558,625 Rock Asphalt................. 9,950 ” 218,000 Sand, gravel, salt and all other nonmetallics...................... 8,272,949 P34,100,328 Grand Total.............................................................. P145,833,393 NOTE: a—The estimated average market price of goldfrom January 1 to December 31, 1953, is P103.35 per ounce. plan on which a general agreement might be reached, and hence it was decided to endeavor to reach a common un derstanding on the type and extent of aid the industry required and the costs of which the Government could afford. At this point, Governor Cuaderno read a prepared memorandum (written October 8, 1953) on a plan which he and Prof. Bernstein of the International Monetary Board believed was the most feasible type of aid possible under the circumstances. It envisaged a type of aid similar to that now in effect in Canada, which aid would be limited and dependent on individual mines’ production costs. Gov ernor Cuaderno offered to make immediate arrangements for bringing into the country two Canadian experts to supervise the plan, and the Committee requested him to do so. In order to expedite action, Secretary Araneta ap pointed two subcommittees, as follows: (1) a committee headed by Servillano Aquino, and composed additionally of Mrs. Garcia (representing Governor Cuaderno), and Messrs. Gozon, Foster, Lardizabal, and the undersigned, to study the type and amount of help that the Government should give to the gold producers; (2) a committee headed by Mr. Calalang, and composed additionally of Mrs. Garcia and Messrs. Sixto Orosa Jr., Antonio Garcia, Amado R. Brinas (of the office of the Secretary of Finance), Jose Quema, of the Bureau of Mines, and the undersigned. This second committee was charged with the duty of es timating the amount of revenue which the Government derives from the gold-producing industry. GOLD AND SILVER PRODUCTION IN THE PHILIPPINES Calendar Year 1953 TOTALS Value In Pesos NAME OF COMPANY Quantity Atok-Big Wedge............. Baguio Gold.................... Balatoc Mining............... Benguet Consolidated... Itogon Mining. Lepanto Consolidated. Looc Lead-Silver Mines. Mindanao Mother Lode San Mauricio Mining. . . Surigao Consolidated.... United Paracale.............. Oz. At P70.00 At P103.35 Per Ounce Per Ounceb P 1,693,302 27,274 1,720,576 2,086,089 25,289 2,111,378 6,205,735 118,984 6,324,719 7,147,602 136,638 7,284,240 2,838,020 21,407 2,859,427 3,229,653 264,871 3,494,524 14,616 14,616 1,813,752 59,756 1,873,508 3,912,588 109,632 4,022,220 3,630,160 100,553 3,730,713 490,009 12,005 502,014 440,300 Nor-Min Ventures.......... Surigao Placer................. 413 102,895 76,922 76,922 TOTALS.................. Au 480,625 Oz. P33,666,614 P49.672.584 Ag 572,046 ” 892,807 892,807 M.O. 2,210,191 S.T. ) P34,559,421 P50,565,391 Cu.Yd 2,096,156 ) =====---------b—The estimated average market price of gold from January 1 to December 31, 1953 is P103.35 per ounce. Taysan Gold Mining Corp, shut down in April, 1950. Tambia Gold Dredging Co., Inc. shut down in October, 1951. United Paracale Miping Co. shut down in May, 1953. Pan Philippine Corp, shut down in October, 1952. Atok-Big Wedge Mining Co. shut down in December, 1953. .101 Meanwhile, efforts are being made to reconcile differ ences between labor and management and to standardize wages on a mutually satisfactory basis as a prelude to the insertion of a “non-strike” clause or agreement, possibly to be incorporated in the projected Subsidy Bill itself. If successful, this clause alone would do much for the gold mines because industrial peace is an absolute requisite to efficient operation. No attempt will be made here to predict the outcome of these efforts other than to express confidence that ulti mately the mining industry will be aided. Whether the type and amount will represent a mere “transfusion” to prolong the life of the patient, or whether it will be substantial enough actually save the patient, is the alternative which the Presidential Commission, and ultimately Congress, will determine. Preliminarily, it appears that the subsidy may be sufficient merely to keep existing mines going, but insuffi cient to attract other gold producers into the production stage. To put it briefly, the proposed subsidy of Pl 10.00 per ounce for refined gold (approximately P 109.00 for bullion) will barely keep going the mines in operation, while (in my opinion) nothing below Pl20.00 per ounce will attract ne'w capital to the gold industry, even in mines already developed and needing only a little more capital to definitely get into production. BASE METAL PRODUCTION IN THE PHILIPPINES Calendar Year 1953 Name of Company Consolidated Mines (a)............. Acoje Mining (b)........................ Dinagat Mines (b)...................... Luzon Stev. Chromite (b)........ Zambales Chromite (b)............. Mayon Mining (b)...................... Lepanto Consolidated (c)......... Mindanao Mother Lode (d) .. . San Mauricio (e)......................... United Paracale (f)...................... Hixbar Gold Mining (g)........... Looc Lead-Silver Mines (b) . . San Mauricio (e)......................... Surigao Consolidated (i)........... United Paracale (f)..................... San Mauricio (e)......................... Surigao Consolidated (i)........... Philippine Iron Mines (j)......... Samar Mining (j)........................ Marinduque Iroh Mines (j) . . Baybay Manganese (k)............. Cia Minera de Filipinas (k) . . . General Base Metals (k)........... Luzon Base Metals (k)............. Luzon Stev. Manganese (k) . .. Misamis Or. Manganese (k). . . oTga^FreighlTser^rice^k^. . TOTALS Quantity Value in in M.T. Pesos 468,549 P14.056.470 75,200 4,910,970 697 57,349 7,258 471,620 3,188 146,522 2,198 184,632 12,233 14,270,092 218 280, * 607 163 202,073 11 13,337 90 135,802 3 1,503 827 489,'730 1,591 871,117 13 7,137 406 216,404 341 194,569 724;983 14,516,809 286,869 5,094,932 206,012 3,630,936 1,723 142,664 802 67,360 13,281 744,705 330 28,127 935 76368 233 10,599 2,000 185,100 1,680 139,232 524 20,908 P14.056.470 488,’541 5,771,093 12,715 14,901,911 2,434 1,369,487 747 410,973 1,217,864 23,242,677 21,508 1,415,063 NON-METALLIC MINERAL PRODUCTION Calendar Year 1953 Product Quantity Value—P Clay Products: (pieces) Pottery (jars, pots, stoves, etc.)................ 1,124,292 P 172,910 Bricks.................................................................. 265,200 34,024 Tiles...................................................................... 1,360,000 272,500 Paints (white clay, ochre, etc.) M.T......... 603 34,494 Building Stones (adobe, coral blocks, lime stone blocks, etc.) pcs................................ 223,215 146,156 Marble Products" Finished Products (Sq.M.)..................... 1,516) Unfinished Products (Cu.M.)................. 432) 162,467 Limestone Products (M.T.) Cement manufacture (lime and lime stone rocksb)................................................ 282,385 461,061 Agricultural lime (fertilizer)0...................... 907 13,596 Industrial lime (glassware, rubber products, sugar, mining, etc.jd.............. 9,390 657,247 Building construction lime (slaked lime, quick lime)|d................................................ 2,486 124,278 Other uses of lime........................................... 6,'800 287,614 Lime from shells (M.T.)................................... 1,045 45,713 Guano (M.T.)....................................................... 640 27,583 Sulfur (M.T.)....................................................... 1,976 92,836 Salt from sea water (ca vanes) e...................... 954,753 1,909,506 Rock salt............................................................... 1,236 4,945 Sand and gravel (cu.m.).................................... 1,013,729 3,302,141 Crushed rock (cu.m.).......................................... 41,830 221,304 Silica sand (M.T.).............................................. 24,451 302,574 Total.............................. .................................................. P8,272,949 ■—Figures taken from Cebu Portland Cement Co. and Marble Corp, of the Philippines. b—Figures taken from Cebu Portland Cement Co. and Rizal Cement Co. c—Figures taken from Ipo Lime and Marble Corp, of the Philippines, d—Figures taken from lime manufacturing companies. e—20 cavanes equivalent to one metric ton. —Compiled in the Mining and Metallurgical Division from the reports of Municipal Treasurers of the Philippines and/or other producers. Prepared by Consorcio G. Roa, Mining Engineer, F.k,....., * 2 MO Lumber By Pacifico de Ocampo Secretary- Treasurer Philippine Lumber Producers * Association, Inc. DURING the month under review, January, 1954, the Philippines exported 44,951,793 bd. ft. of logs and lumber, 5,024,784 bd. ft. less than the preceding month. This big decrease was mainly due to the decline in the shipment of logs to Japan, from 41,834,287 bd. ft. in December, 1953, to 37,521,182 bd. ft. in January, 1954, or a decrease of 4,313,105 bd. ft. The exports to the United States decreased by 198,428 bd. ft., from 5,575,345 bd. ft. in December, 1953, to 5,376,917 bd. ft. in January, 1954. Exports to all other countries decreased by 480,160 bd. ft., from 2,533,854 bd. ft. in December, 1953, to 2,053,694 bd. ft. in January, 1954. The following are the quantities of logs and lumber in bd. ft. inspected for export during December, 1953, as released by the Bureau of Forestry. Volume in Board Feet Shipper Destination Lumber Logs Aguinaldo Development Co.. ... Japan 999,991 Agusan Timber Corp................ Japan 1,300,000 American Rubber Co................ Japan 600,007 Anakan U. S. A. 250,000 Lumber Co.............................. Japan 2,820,000 Basilan U. S. A. 549,371 389,318 Lumber Hongkong 44,671 Co........................................... Japan 2,599,635 Bislig Bay Lumber Co., Inc... . Japan 5,579,964 Brigido R. Valencia.................. Japan 687,727 Cipriano Luna Lumber Enterprises........................................... Japan 599,550 Dee Cho Lumber Co................ . U. S. A. 28,000 East Mindanao Lumber Co.. ., Japan 350,000 Edward L. Kincaid...................... . U. S. A. 100,290 Extensive Enterprises Corp... . Japan 1,451,665 F. E. Zuellig, Inc......................... . U. S. A. 82,665 Findlay Millar Okinawa 320,000 Timber Co................................ Japan 2,462,638 102