Mining

Media

Part of The American Chamber of Commerce Journal

Title: Mining
Creator: Lim, Nestorio N.
Language: English
Source: The American Chamber of Commerce Journal Volume XXVII (Issue No. 7) July 1951
Year: 1951
Rights
Fulltext: lumber and 26,965,718 board feet in round logs. Most of the logs went to Japan and consisted largely of saw logs and a small percentage of peelers for veneer and plywood. Late reports from Japan, however, are to the effect that there are about 45,000,000 bd. ft. of saw logs in Japan that can not be readily absorbed by the market. The low quality logs, according to these reports, were sawn into lumber and sold to the occupation army in Japan and Korea. But lately SCAP appears to have discontinued this method of purchasing and has called for tenders from lumber pro ducers in the Philippines. There are many more saw logs that remain to be shipped to Japan, but the buyers have not sent the boats to pick them up. This has caused logs producers to feel that Japanese buyers deliberately. allow letters of credit to expire by not sending boats on time. Several logging contractors have lost money in this way. The demand for peeler logs in Japan, however, remains firm and they continue to command a satisfactory price. In the United States the demand for logs and lumber has gone down slightly because of the government restrictions on steel and other strategic materials sup plied for civilian needs. These have curtailed the production of television- and radio-cabinet and furniture manufacture which consumes a big volume of cabinet timbers. Manufacturers, however, are hopeful that the furniture market will improve after the shows take place this summer. The Bureau of Forestry released the following report on logs and lumber inspected for export during the month of May, 1951: Destination United States................ J * PM» .............................. Okinawa......................... South Africa.................. Total....................... Lumber Value (Bd.Ft.) 5.202,693 Pl,173,948.46 498,736 84,445.90 245,666 70,461.83 101,740 18,272.36 80,611 24,528.17 116,383 29,029.06 6,245,829 Pl,400,685.78 Logs Value (Bd.Ft.) 5,385,352 P 738,559.83 21,480,382 2,298,728.37 99,984 22,568.92 26,965,718 P3,059,857.12 In the local market, prices weakened slightly during the early part of May as a result of the rejection by SCAP of a tenders for about 20,000,000 bd. ft., but during the latter part of the month, when it was known that SCAP was calling for another bid, wholesale prices steadied, thus tangile and red lauan sold for P200, apitong P190, and white lauan from Pl80 to Pl85. Philippine producers are hopeful that the tenders in Japan will go through for the reason that this would enable them to saw a large percentage of merchantable logs for Japan which would have a stabilizing effect on prices. EXPORT OF LOGS AND LUMBER FOR THE MONTH OF MAY Shipper Destination Abarro fit Sons............................ Japan Agusan.......................................... U.S.A. Timber Japan Corporation Canada Lumber Logs Board Feet 920,311 644,896 349,555 49,989 Anakan......................................... U.S.A. Japan Canada 6,001 199,996 1,850,165 49,995 U.S.A. 170,002 U.S.A. 2,255,233 1,271,662 Japan 939,152 U.S.A. 123,275 U.S.A. 88,090 Japan 438,151 U.S.A. 180,002 Japan 398,446 Japan 499,995 U.S.A. 744,519 Hawaii 245,666 Erie 101,740 Canada 30,363 S. Africa 116,383 Lumber Company, Inc. Associated Lumber Manufac turing Co................................. Basilan Lumber......................... Company, Inc. Dahican Lumber Company, Inc.............................................. Findlay Millar Timber Co.. .. Francisco Roix........................... Getz Bros Ok Company............. Golden Ribbon Lumber Co., Inc.............................................. Gulf Lumber Company, Inc... Insular.......................................... Lumber Company Johnston Lumber Co., Inc... . Japan 2,477,350 Luna, Cipriano & Company. . Marsman Development Com Japan 665,876 pany.......................................... Japan 500,000 Martha.......................................... U.S.A. 452,959 Lumber Mill Japan 1,000,000 Nasipit.......................................... U.S.A. 1,411,375 Lumber Company Canada 50,248 North Camarines...................... Japan 1,298,372 Lumber Company Okinawa 380,730 Pan Asiatic Commercial Com pany.......................................... Pan Philippine Commercial Japan 1,860,364 Corporation............................ Japan 397,267 Philippine..................................... Japan 127,903 Merchant Corp Okinawa 60,808 Ralph L. Stover....................... Okinawa 57,198 Reynaldo Lumber.................... U.S.A. 88,196 Company, Inc. Japan 653,369 Robert Freider........................... Japan 249,681 Sta. Clara.................................... U.S.A. 136,000 250,115 Lumber Company Japan 2,711,246 Surigao Timber Co., Inc.......... U.S.A. 508,628 Tirador, Jorge............................. Japan 825,635 Western Mindanao.................... U.S.A. 2,057,096 Lumber Co. Japan 3,017,612 Woodworks, Inc......................... Japan 299,932 Total............................ 6,245,829 26,965,718 Mining By Nestorio N. Lim Secretary, Chamber of Mines of the Philippines GOLD was and is the major product of the Philippine mining industry before and since the war. Its pro duction dates back to the early history of the coun try, and in 1940, there were 57 gold-producing mines. At present, only 8 of the pre-war producers are in active production. No new mines have augmented this list of producers. Gold mining has suffered a set-back since the liberation due to the fact that though the cost of production rose to more than twice the pre-war figure, the official price of gold remains the same. From 1948 to the early part of 1950, the gold-mining companies sold their output to local buyers who bought at higher prices than the official rate of P70 per ounce. After the establishment of the Central Bank, the Bank officials wanted all the gold produced to be sold to the Central Bank at P70 per ounce. The officials of the gold mines concerned naturally protested, and after several conferences it was finally agreed that 25% of the gold produced would be turned over to the Government at P70 per ounce, while the rest would be permitted to be sold in the free market within the Philippines. The agreement went into effect early in 1950 and everybody was content; the free market price of gold rose from P85 per ounce in 1948 to P168 in March, 1951. In the meantime, the Import Control Office was created and there was a time when none of the mining companies could get licenses to import absolutely necessary machinery and supplies. Mining men again complained to the au thorities and pointed out, that the industry, a major in dustry of the country, employing 50,000 people, paying the Government over P3,000,000 annually in taxes, was on the verge of closing down due to inability to secure such licenses. The officials concerned lent a sympathetic ear and the situation was eased a little, but still action on mining applications remained far from satisfactory. The companies got a break, however, when PRISCO was or ganized. Thanks to Mr. Daniel Aguinaldo, who ran the PRISCO with the efficiency of a business establishment, PRISCO helped the country by helping the dollar-producing industries. The mining industry resumed opera tions at full blast. The price of gold was rising and all was going well. 228 July, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 229 Then came word from the Central Bank that the officials wanted to hold a meeting with the officials of the Chamber of Mines to talk about increasing the percentage of gold to be turned over to the Central Bank. The Cham ber officials explained their side to the Governor of the Central Bank and he finally agreed that the percentage of bullion to be turned over to the Bank would remain as it was because of the increases in taxes and in the cost of machinery and supplies and labor, and because of the un certain world situation. However, local gold buyers now began to complain to the mining companies that they were frequently being investigated by government law-enforcing agencies for alleged illegal possession of gold, possession of fire-arms, and many other reasons. The raiding parties, on finding gold bullion, often took it to their headquarters; the owners would usually get it back, though not without great in convenience. The writer was called upon twice by gold buyers whose premises had thus been invaded, but in both cases the investigators left after due explanation had been made. Subsequently, however, government agencies inten sified the raids on the gold buyers’ establishments, and the buyers, intimidated by the threats of confiscation, and imprisonment or deportation, suspended all buying. During the month of May and the first week of June, there was not a single sale of gold bullion. The gold-mining companies whose existence depends upon the sale of bullion in the free market, were again greatly worried, and com pany officials called on the various heads of the govern ment agencies concerned,—the Central Bank officials, the Chief of Staff of the Philippine Army, the Chief of Police of the Manila Police Department, the Director of the National Bureau of Investigation, the Secretary of Justice, and the Secretary of the Department of Finance. Everyone of these officials expressed his concern and sym pathy with the plight of the industry, and promised cooperation in remedying the situation. They were sup plied the names and addresses of the legitimate gold buyers whose activities were wholly within the law so long as they did not smuggle gold out of the country. The gold buyers, assured that they would not be further molested, have now resumed buying gold. After six weeks of stagnancy, the first sale of gold was registered on June 10, at Pl08 per ounce. Buying has continued, although timidly. Secretary Pedrosa on June 26 instructed Department of Finance agents not to interfere with goldbuying and selling within the Philippines, and explained that mere possession of gold is perfectly legal and that its exportation in accordance with the export control law is not prohibited. “What is prohibited is the smuggling of the same,” he said. Secretary of Justice Jose P. Bengzon, in a letter dated June 22, addressed to Mr. V. E. Lednicky, President of the Chamber of Mines of the Philippines, said: “For your information, express instructions were given to the N.B.I. not to hinder the free flow of gold in accordance with the law and the rules and regulations established by the Central Bank. What they should only prevent is the smuggling of the gold out of the country in violation of our laws, and it was made plain that mere possession of gold in good faith is an act of commerce and not penalized by our statutes.” In Press Release No. 2-26-5, dated June 26, Office of the President, it was announced that the Cabinet ap proved of the free traffic in gold in the domestic market. This means that there is a free market for gold within the country. Gold may also be sent out of the country pro vided that an export permit is secured. Smuggling gold, however, is prohibited under heavy penalty. This clarification by the Cabinet of the free movement INSULAR LUMBER COMPANY FABRICA, OCC. NEGROS ----------¥----------SPECIALISTS IN KILN DRIED LUMBER and MANUFACTURERS OF BOXES OF ALL DESCRIPTIONS MANILA DISTRIBUTORS: Norton & Harrison Company 814 Echague Manila D. C. Chuan & Sons, Inc. 14-30 Soler St. Manila Insular Saw Mill, Inc. 340 Canonigo, Paco Manila MANILA OFFICE-. 401 FILIPINAS BUILDING 230 AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1951 of gold within the country is for the benefit of those agents of the Government who had been making arrests for buying or selling gold. The foregoing is a recital of the various problems of the mining industry which altogether have prevented any extensive development of the industry. They have definitely discouraged the entry of foreign venture capital. It is hoped that the Government’s clarification of the legality of gold trading will remove the fears entertained by our gold buyers and give new impetus to our industry. GOLD AND SILVER PRODUCTION IN THE PHILIPPINES Chamber of Mines of the Philippines APRIL MAY NAME Quantity Value in Pesos Quantity Value in Pesos Au. 3,840 oz. P 268,828 4,985 oz. P 348,972 Atok-Big Wedge Mining Co., Inc............................ .................... Ag. 2,389 ” 3,392 2,958 ” 4,200 M.O. 13,170 S.T. 272,220 13,237 S.T. 353,172 Au. 7,768 oz. 543,740 8,352 oz. 584,640 Balatoc Mining Company.......................................... .................... Ag. 5,035 ” 8,056 5,361 ” 5,790 M.O. 39,486 S.T. 551,795 38,751 S.T. 590,430 Au. 1,119 oz. 568,337 8,260 oz. 578,200 Benguet Consolidated Mining Co........................... .................... Ag. 5,263 ” 8,420 5,302 ” 9,544 M.O. 32,684 S.T. 576,757 35,932 S.T. 587,744 Au. 3,525 oz. 246,757 3,186 oz. 222,992 Lepanto Consolidated Mining Co............................ .................... M.O. 28,013 S.T. 246,757 27,300 S.T. 222,992 Au. 4,771 oz. 331,806 4,065 oz. 282,240 Mindanao Mother Lode Mines, Inc........................ .................... Ag. 4,737 ” 6,933 4,527 ” 7,017 M.O. 10,000 S.T. 338,739 10,000 S.T. 289,257 Au. 3,600 oz. 252,000 4,500 oz. 315,000 Surigao Consolidated Mining Co............................. .................... Ag. 2,421 ” 3,874 2,046 ” 9,248 S.T. 3,683 M.O. 8,577 S.T. 255,874 318,683 Au None None None None Looc-Lead-Silver Mines............................................. .................... M.O. None None None None Au. 101 oz. 6,000 100 oz. 6,000 Tambis Gold Dredging Co., Inc............................... .................... Du.Yd. 20,000 6,000 20,000 6,000 Au. None None 315 oz. 22,071 Surigao Placer Syndicate............................................ .................... Ag. 50,000 22,071 M.O. None None Au. None None None None Nor-Min Venture.-....................................................... .................... Ag. None None None None M.O. None None None None Total................................................................ .................... Au. 31,724 oz. P2,217,468 33,763 oz. P2,360,115 Ag. 19,845 ” 30,675 20,194 ” 30,234 M.O. 131,930 S.T.) 134,468 S.T.) Cu.Yd. 20,000 ) 2,248,143 70,000 ) 2,390,349 Access to the Markets of the World NATIONAL CITY BANK offers quick access to world markets through 48 overseas its own — more overseas branches than other American banks together. lonj established correspondent important banks throughout the branches of those of all In addition it has relationships world. THE NATIONAL CITY BANK OF NEW YORK Jirlt in World-Wide Mantling Branches in the Philippines MANILA Main Branch: Juan Luna Street Port Area B^nch; 13th Street PAMPANGA: CLARK FIELD with CEBU: CEBU CITY July, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 231 BASE METAL PRODUCTION IN THE PHILIPPINES Chamber of Mines of the Philippines APRIL MAY Quantity Value Quantity Value NAME M.T. jin Pesos M.T. in Pesos Consolidated Mines, Inc.......... 20,000 P484.800 17,800 P427.200 Lepanto Consolidated Mining Co............................................... 969 926,248 903 851,776 Mindanao Mother Lode Mines, Inc............................... 26 23,845 24 20,913 Philippine Iron Mines, Inc... . 43,703 546,288 54,495 874,171 Samar Mining Co., Inc............ 20,223 370,099 28,239 516,774 Marinduque Iron Mines......... 3,853 73,207 3,354 63,726 Acoje Mining Company........... None None 5,000 194,650 Misamis Chromite Mining Co............................................... None None 1,209 72,540 Luzon Stevedoring (Chromite) None None 1,800 72,000 Looc-Lead-Silver Mines.......... None None None None Surigao Consolidated Mining Co............................................... 34 25,327 33 34,865 Luzon Stevedoring (Manga nese) .......................................... None None 3,200 128,000 218,400 General Base Metals................ None None 4,368 1,100 Palawan Manganese Mines... None None 88,943 Amalgamated Minerals, Inc... None None 1,418 81,677 None Badillo Mining Co..................... None None None Copra and Coconut Oil By K. B. Day and D. C. Keller Philippine Refining Company, Inc. May 16—Jane 15 BOTH the copra and coconut oil markets continued to fall sharply during the period under review and comparatively little business, apart from German purchases, has been reported. On the Pacific Coast, copra prices fell from $205 per ton c.i.f. to $175 without attracting any real buying in terest. A similar indifference to the market was displayed by Europe where the price also fell by $30, i.e., from $250 per ton c.i.f. at the beginning of the period to $220 c.i.f. on June 15. The one bright spot during the period was the purchase by Germany of some 6,300 tons of Philippine copra at a price equivalent to around $227.50 c.i.f. Ham burg. The local market kept in line with the general de cline; prices were quoted on May 16 of P38 per 100 kilos and had fallen to P33 on June 15. Local dealers were very uneasy and over-cautious in their trading, feeling that with every new decline the market had at last reached “bottom”; indications, however, are that prices may con tinue to fall. Oil prices in the United States experienced similar downward trends; opening offers of 16 cents f.o.b. Pacific Coast which went unaccepted had fallen to 13-1/4 cents f.o.b. at the end of the period and apart from a few small resales of tank-cars we have heard of no other trading having taken place. There was no interest in bulk oil. In Europe, Germany once again stepped into the picture with purchases of 4,500 tons of oil at a price equivalent to $324.50 per ton c.i.f. Hamburg, this time partly from Philippine sources and partly from Coast mills which sold at 13-1/2 cents f.o.b. Pacific Coast. Aside from this business, however, there was a com plete lack of interest and the market continued weak, and sellers who were holding for $375 per ton c.i.f. Europe on May 15, were offering freely at $330 on June 15 without eliciting interest. There is little doubt that one of the chief causes of the weak market, both in America and Europe, can be •attributed to the new “peace in Korea” possibilities which have grown steadily stronger during recent weeks and have led to a general slow-down in business and a reduc tion in inventories. NOV/./ FOR THE FIRST TIME Silvertown NON SKID DESIGN Silvertown TREAD DEPTH TREAD WIDTH Silvertown COLD RUBBER Goodrich International Rubber Co. OFFICE & BODEGA 13th & ATLANTA, PORT AREA TEL. No. 3-37-21 RECAP PLANT 207 RIZAL AVE. EXT., GRACE PARK TEL. No. 2-72-23
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