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Mining would continue to constitute a major driver of the Davao Region economy as a result of the recent improvement in the price of gold ore.

NEDA assistant regional director Atty. Bonifacio Uy said that although investments in the mining industry has softened for the meantime, the price of gold has improved and became an alternative investments in some countries.

Based on the region's development outlook for 2009, the growth target of 5.9 percent is attainable given the resiliency of the regional economy and growth drivers to include mini, Uy said.

He said the development of mining industry will accelerate this year, adding “now is the time to fully develop mineral areas and as things are going by next year the prices of products would improve.”

He said it is high time to develop mineral area, “so that the time the economy improves we are ready with our products.”

Maria Fe M. Talento, OIC-Chief of Production Accounts Division of the National Statistical Coordination Board (NSCB) Manila, said prices of gold depends on the world metal prices and because of the global financial crisis, the trend towards the fourth quarter of 2008 showed a decline in the prices.

She said with many seeing a good price for gold they would tend to produce more as they take advantage of the high price.

Report from the Bangko Sentral ng Pilipinas showed that 80 percent of the country’s gold production comes from Davao Region and a big percentage or about half of this figure comes from small and scale mining. (PNA)

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