THE MINERAL INDUSTRY OF THE PHILIPPINES 747 
 
 The establishment of an iron and steel incentives as tax—free
imports
of capital industry, first proposed in 1965, was an- equipment, deductions
for organizational nounced as one of the 11 industrial projects ~ and operational
expenses, and accelerated included in the major economic policy før
depreciation schedules. Marinduque Mmthe 1980's. The proposed integrated
mill ing, the largest producer in the Philippines, was to be built on 700
hectares of the 3,000- also operates the Surigao Nickel Refinery hectare
Phividee Industrial estate in Taga- and recovers cobalt in the form of mixed
loan at a cost of $144 billion Feasibility nickel-cobalt sulfides Marinduque
Mining s studies for the 1.5-million-ton-per-year mill ore reserves were
estimated at 125 million were being conducted. tons of 1.22%~nickel, 0.12%
cobalt, and 
 In early 1978 Armco-Marsteel Alloy 38.5% iron. Marinduque Mining suffered
Corp. placed into operation its steelworks in from operational difficulties
both at the Taguig. Plant capability includes procluc- mine and at the refinery.
Despite a decrease tion of some 50 grades of carbon and alloy in production,
output value rose 30% besteel for forging, machinery, structural, and cause
of higher nickel prices. The compaother high-strength applications. National
ny s operations further benefited from its Steel Corp. has two plants for
production of cobalt recovery; a tight supply worldwide 
steel products using mainly imported mate- resu~lted in a higher price for
the metal. 
  Rio Tuba operates its mme on Palawan 
rials~ Ehzalde Iron and Steel Co. operates a 
 Island which has a rated annual production 
cold mill and a tmplate plant and other capacity of 700 000 tons contaming
11 000 
producers such as Philippine Blooming tons nickel. Mine output is shipped
to ferro 
Mills Mlndanao Steel have remelt and nickel smelters in Japan for processing.
Rio 
fabrication facilities Tuba s ore reserves were estimated at 13 
 The Government announced plans for a million tons. Plans for installing
a refining 
charcoal fired 100 000 ton per year pig iron complex were deferred in 1978
because of 
plant in Currimao Ilocos Norte Raw mate- the soft market The remainder of
the 
rial feed for the plant included iron ore to nickel production in 1978 79
was by Infanta 
be mined in Ilocos Norte, limestone from Minerals. Acoje Mining's nickel
mine was 
Bacnotan Cement Co. and Northern Ce- not operated during both years. New
Fron 
ment Co and charcoal from a 10000 tier Mines Inc was expected to proceed

hectare plantation being created by the with its plans for the $25 million
Isabela 
Bureau of Forest Development near the project, which was designed to produce

site. 6,800 tons per year of ferronickel. 
 Lead Zinc —Production of lead zmc in  Uranium —Presidential
Decree No 1101 
the Philippines is virtually by two primary outlined the guidelines and incentives
for 
producers. Benguet Exploration, Inc., better the opening, processing, and
refining of 
known for gold and silver, produced zinc radioactive materials, thereby encouraging

from its mine in the Baguio area, Benguet, the private sector to explore
and develop 
ilocos region; and Zambales Base Metal, uranium resources. Ultrana Nuclear
& 
Inc., produced lead and zinc at its operation Minerals Corp. and Western
Nuclear Co. 
in Zamboanga del Sur, western Mindanao. were to conduct uranium exploration
joint 
Zambales' output is shipped to Japan, while ly in the Mabinay area in Negros
Oriental. 
Benguet Exploration exports to the United At least $250,000 will be spent
for explora 
States. tion and an additional. $750,000 if test re 
 Molybdenum.—Production of molybde- sults are favorable. The Philippine
Bureau 
num sulfide concentrate was wholly by of Mines in cooperation with the Philippine

Marinduque Mining from its Sipalay Mine Atomic Energy Commission was to under-

and by Atlas Consolidated from its Carmen take exploration activities in
Larap, Jose 
project. Both companies recover molybde- Panganiban (Camarines Norte). Other
pos 
num as a byproduct of copper mining. sible exploration activities were for
possible 
Exports of concentrate in 1978 were. to the uranium occurrences in Hinabangan,
Sa 
United States and the Federal Republic of mar; Salsona, ilocos Norte; Ayala
district, 
Germany. Zamboanga; and Magna Rosa, Caranoan 
 Nickel.—During 1978-79, nickel ore was Peninsula. 
produced by Marinduque Mining, Rio Tuba            NONMETALS 
Nickel Mining Corp., and Infanta Minerals 
and Industrial Corp. The nickel industry is  Cement.—Reconstruction
and develop- 
considered a priority investment by the ment of the cement industry is one
of the 11 
Philippine Government which grants such projects established under the economic