Mining

Title

Mining

Creator

Brimo, Henry A.

Language

English

Source

The American Chamber of Commerce Journal Volume XXX (No. 1) January 1954

Year

1954

Rights

In Copyright - Educational Use Permitted

Fulltext

January, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 23 Mining By Henry A. Brimo President Philippine Gold Producers Association, Inc. DURING the past year we made some dire statements in these columns concerning the plight of Philippine gold producers, but three failures during the year justified our pessimism. These failures came notwith standing the promise of tax relief, as in the case of United Paracale, and after tax relief was received, as in the cases of Atok Big Wedge Mining Company and Mindanao Mother Lode. What caused these 1953 failures are well-known, but at the risk of being repetitious, two principal factors mainly responsible may be mentioned, namely, the higher minimum wage and the lower price of gold in the free market. What does 1954 hold for our gold producers? . As matters now stand, to be frank, the outlook is so serious that one might almost predict the total collapse of the industry, with possibly the exception of one or two com panies, unless something is done to improve the price for gold (currently at P102.50 per ounce for bullion). - Fortunately, 1954 brings a new Administration and the promise of bold and vigorous action by an Executive whose indomitable spirit has inspired us all. The appoint ment may reasonably be expected of a new group of expe rienced men well grounded in financial matters, as well as the retention of experienced individuals from the previous Administration. It appears certain, for instance, that Governor Miguel Cuaderno of the Central Bank will choose to remain, with the blessings of President Magsaysay, at the helm of this important institution, and there is no one better versed in the difficulties facing the mining in dustry, and with the necessary background to make recom mendations, than Governor Cuaderno. It is hardly necessary to repeat that the only solution possible for the difficulties facing gold producers is a higher price for their product. Any further clinging to the official world price of $35 per ounce, or to a price which is dependent on or connected with the official price, will only hasten the final collapse unless active and realistic measures are taken to compensate the producers. Fortunately, there is now every indication that this fact is receiving due recog nition, just as there appears to be a new consciousness of the importance of using gold to help solve the dollar-shortage problem. It should not be amiss, therefore, to expect that 1954 will finally bring our gold producers needed relief in the form of government measures designed to stabilize the gold price at a level necessary not only to keep operating mines in production, but also to encourage those mines now developed but standing by, awaiting better days, to actually begin operations. Indeed, there is no alternative but prostration for the industry. As to the type of relief expected or already proposed, the gold producers subscribe to the general belief that the most feasible help is the direct subsidy plan. This plan is by far the simplest and most effective remedy possible. From the viewpoint of the industry itself, however, we believe that a direct subsidy plan, guaranteeing a mini mum price for gold that would cover all costs plus a reason able profit, allied to the gold-certificate plan which has been freely mentioned throughout 1953 and which the undersigned propounded in a speech he made before the Baguio Rotary Club last August 29 (portions of which were printed in these columns in the September issue), is the best possible solution. Our support of this combined measure is due to our hope that the use of the gold-certificate Ours is an established reputation of 142 years standing ... For complete banking Facilities, unparalleled resources and world-wide service Furnished by 57 Fully-staFFed branches and correspondents in every commercially important city. THE NATIONAL CITY BANK OF NEW YORK BRANCHES IN THE PHILIPPINES MANILA Main Branch: JUAN LUNA STREET Port Area Branch: 13TH STREET PAMPANGA: Clark Field CEBU: Cebu City 24 AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1954 plan will bring the price of gold to a satisfactory level without actual monetary cost to our Government. Since, however, the gold-certificate plan is not certain to effec tively achieve its aim, the direct subsidy plan should neces sarily be allied to it_fo provide the necessary support upon which long-term planning can be based. It is up to the Philippine Gold Producers Association to convince our government authorities that relief is im mediately needed, and this we intend to do with all the reserves at our command, and with every hope of success. Copra Cake and Meal Prices. Increased demand for protein meals generally, brought about the first real change in prices for this commodity since last August. Trading for January and February shipment took place at $65-$69 per short ton c.i.f. West Coast, up about $3 for the month. Copra Statistics PHILIPPINE COPRA AND COCONUT OIL EXPORTS Copra and Coconut Oil By Robert J. McCombe Manager, Copra Buying Department, Philippine Manufacturing Company THE price-advance started last August finally slowed to a stop in December. Trading was very light and price unusually static. Surprisingly heavy arrivals were a feature. Copra Prices. During December prices fluctuated narrowly between $212.50 and $220.00 per short ton c.i.f. West Coast, ending at $215.00, off $2.50 for the month. European prices remained unchanged at about $240.00 per long ton c.i.f. Europe. In Manila the local price for fresh copra, resecada basis, 30-day delivery, was steady at F40.00-P40.50 per 100 kilos, off slightly from the November 30 level. Coconut Oil Prices. United States coconut-oil buyers continued to buy very cautiously. Throughout the month large tonnages of unsold afloat oil kept pressure on this market. At the month-end oil was freely offered at 16/ per pound f.o.b. tank cars, Pacific Coast, for Jan uary shipment. Total............................ (In Long Tons) October November Copra United States. . .................... 24,975 30,511 Europe................ .................... 41,825 24,600 Other countries .................... 5,420 4,012 Coconut Oil United States........................ Other countries..................... 72,220 59,123 6,346 8,335 February.. March. . . . Aptil.......... May.......... July........... September November. December. January.. February. Total 6,346 8,335 MANILA AND CEBU COPRA ARRIVALS (/n Metric Tons') Cebu 1953 19 12,682 16 13,029 11 17,991 10 13,380 9 10,164 14 14,462 15 18,182 16 20,413 19 19,779 19 19,123 16 15,709 16 16,838 11 Manila and Cebu 1953 21,130 20,770 24,888 21,685 19,366 25,003 31,802 35,054 36,806 37,271 30,584 32,020 Per cents ge 1953152 J 68.0% > 73.5% 21,998 29,541 30,389 35,355 35,344 PHILIPPINE AND INDONESIAN COPRA EXPORTS (In Metric Tons) Philippine Copra Exports * Percentage 1953 1952 1953/52 41,025 77,050 53.2% 38,672 84,884 45.6% Indonesia Copra Exports Percentage ’ 1953/52 43.6% 75.5% 1952 32,657 24,931 ENGINEERING EQUIPMENT & SUPPLY COMPANY, Inc. MACHINERY • MECHANICAL SUPPLIES • ENGINEERS • CONTRACTORS AIR CONDITIONING For Offices, Theatres, Hospitals, Stores, Restaurants, Hotels, Clubs and Homes ★ ★ ★ Suppliers of MACHINERY, EQUIPMENT and INDUSTRIAL SUPPLIES For Sugar Centrals, Mines, Sawmills, Power Plants, Machine Shops and All Industrial Plants ★ ★ ★ ENGINEERING — DESIGN — APPLICATION — ESTIMATES INSTALLATION — MAINTENANCE — SERVICE — REPAIRS General & Sales Office 174 M. de Comillas Manila Tel. 3-29-21 ★ ★ ★ Operating: g MACHINE SHOPS • STEEL PLATE SHOPS | STRUCTURAL STEEL SHOPS • WELDING I! SHOPS • BLACKSMITH SHOPS • SHEET METAL SHOPS • MARINE RAILWAY I Engineering Shops No. 1 Calle L. Segura & Pasig River Mandaluyong, Rizal Tel. 6-65-68

Media