Minor Forest Products Philippine forests are the source of many other raw materials of commercial interest. Bamboo is available in a number of different varieties and is suitable for almost every purpose for which wood is used in tropical climates. For furniture construction, Philippine rattan, which is produced primarily in the Agusan River area in northern Mindanao, is considered equal in quality to any grown in the Far East. For the fiscal year ended June 30, 1953, output amounted to 4.5 million linear meters of unsplit rattan and 277 metric tons of split. Exports are growing in importance and the Philippines now ranks second only to Hong Kong in exports of poles and knocked-down furniture. The principal bark obtained from the forests is cinchona (which contains quinine), but tannin, dye, medicinal, and flavoring barks are available also. More than 200 metric tons of excellentquality cinchona have been exported in recent years. The Philippines has no laboratory facilities for making quinine tablets. Among resins, "Philippine Manila copal," used in the manufacture of glossy varnishes and lacquers, has long been known in trade. However, competition from producers in other parts of southeast Asia and from synthetic resins has served to curtail Philippine sales. Production in the fiscal year ended June 30, 1952, amounted to 671 metric tons and exports in the calendar year 1952 totaled 313 tons. The highest quality of copal comes from Quezon Province, Luzon, and Palawan. Elemi is another resin that produces a fine varnish, and it is used locally for calking boats also. Production levels have been affected by competition from Madagascar in the world market. Lesser forest products include rubber; guttapercha, chicle, and a few other gums; lumbang nuts; medicinal plants; and ornamental flowers and trees. Lumbang oil, which has properties similar to linseed and tung oil, is consumed locally and plantation culture of lumbang trees is said to be increasing. In 1952, output of the oil was 390 tons. Forestry Licenses 2 Citizens of the Philippines or the United States, and corporations, associations, partnerships, or companies organized under Philippine or American laws, 60 percent of whose capital stock belong to citizens of the Philippines and/or of the United States, may apply for forestry licenses for the commercial utilization and development of the public forests. Commercial forestry licenses are of two kinds: (1) Ordinary licenses issued for 1 year and re 2 Chapter XII, page 86, includes a statement regarding charges on forest products. Additional information regarding forest licenses, fees, and bond deposits, as well as obligations of licensees, is included in Forest Industries of the Philippines, by Winslow L. Gooch, 1953. The Philippine Bureau of Forestry should be consulted for detailed information. newable annually; and (2) long-term licenses granted for periods of not more than 10 years and renewable for an equal period or periods. Generally, renewals are granted if public interests warrant, provided the period covered by the original license and its renewals does not exceed 50 years. FISHING Waters in and around the Philippines contain many hundreds of varieties of fish, but only a relatively small number of these are available in commercial quantities. The fishing industry as a whole is not developed on a business or scientific basis and production, although at record levels, falls far short of supplying the country's requirements for fish, the main source of animal protein in the diet. Domestic supply and requirements may, in time, be more nearly in balance. The catch has been on the uptrend for 4 years, and at least offshore fishing and pond culture are considered susceptible to expansion and are attracting capital. Many coastal waters have unfortunately been overexploited. Moreover, contrary to popular assumption, Philippine fishing grounds are not boundless and narrow continental shelves surrounded by deep warm seas are generally considered less favorable to heavy production than shallow waters and temperate seas. Production Philippine production of fish and other edible sea products (such as shrimp and crabs) is estimated by official sources at roughly 313,000 metric tons for 1952 and 306,000 metric tons for 1953. This is many times the prewar level of output but is about 40 percent below the level that would provide an annual consumption of 25 kilograms per capita. Some 65 percent of the 1953 catch was accounted for by subsistence and municipal fishing, 24 percent by commercial vessels (3 tons and over), and the remaining 11 percent by commercial fishponds. Only in the vicinity of large towns is fishing a separate occupation. No statistics are available on overall production by species. Slipmouths, round scads, and anchovies generally lead in the catch of commercial vessels. In insular waters the most plentiful fish are anchovies, mackerels, sardines, herring, tunas, and bonitos. Bangos (milkfish), the single species of greatest importance, is used almost exclusively in pond culture. In sustenance fishing, done from small bancas along almost the entire shoreline, fishing corrals are generally used. The basnig (bag net) is the means most used in commercial fishing followed by the otter trawl, which is increasing in popularity. Both basnigs and trawls are used within the 3-mile limit. Trawls are operated chiefly in the Visayan and Sibuyan Seas and more recently around Palawan, while basnigs are operated out of most coastal towns in the Visayas and off western and northern shores of Luzon. Dynamiting, an illegal but common practice, is believed responsible for a drop in the supply of fish in formerly very productive areas, such as Manila Bay and Estancia in northern Panay. Fishponds are located in virtually every Province, generally in swampy areas along the coasts. Bangos are used in ponds because of their rapid growth in brackish waters and easy feeding habits. Since bangos do not reproduce in captivity, however, the industry is dependent upon capture of fry along sandy coasts and tidal estuaries. The fry are nurtured in nursery ponds for 2 months and then transferred to larger ponds, where in 4 to 8 months they reach commercial size. The average catch of trawlers, which remain out for 2 to 4 days, ranges from 80 to 100 boxes of 20 kilograms each. The average catch by basnigs for 1 night's fishing ranges from 10 to 20 boxes. Yields from ponds are from 300 to 1,200 kilograms per hectare per year. It is estimated that 50 percent of the Philippine fish catch is consumed fresh; 25 percent is sun dried; 20 percent, wet salted; and 5 percent, smoked. Market facilities do not permit wide distribution of fresh fish, and those for sale generally move from landing point to wholesaler to retailer to consumer within 1 day, often without benefit of icing. Inland areas depend for the most part on domestic processed or imported canned fish. Fish are dried wherever commercial fishing units dock, while smoking is largely limited to cities and towns on Manila Bay. There has been very little canning of fish in the Philippines. Small amounts of edible fish, chiefly wet salted, are exported. Prospects and Problems In Philippine waters expansion in commercial fishing is limited by the small areas that have a sufficient fish population for economical operation. There is room for considerable expansion, however, in pond culture and in fishing far from shore. Fish prices since 1946 have made both offshore and pond culture profitable and some capital is responding to the attraction. Approximately 96,000 hectares of brackish and fresh waters are now devoted to fishponds but some abandoned areas have not yet been rehabilitated and there are nearly 600,000 hectares of unused swampland some of which could be made into ponds. Pond production could also be increased by adoption of cultural practices advocated by the Bureau of Fisheries, and more widespread stocking of ricefields is also considered as offering good potentialities. In offshore fishing, opportunities lie in the development of a permanent deep-sea fishing industry or at least a movement into the more lightly fished or unexplored areas. For example, the Japanese were successful in tuna fishing around the Philippines before the war. However, there appears to be some hesitancy on the part of Philippine fishermen to move away from traditional fishing grounds and remain out at sea more than a day or two, and, on the part of Philippine investors (who view fishing as a risky field), to put up capital for the larger boats capable of traveling greater distances and fishing deeper waters. Extensive exploration is needed to indicate varieties of fish, potential supply, depth of waters, and nature of the sea floor. This could provide an important stimulus to offshore fishing. Problems of the fishing industry as outlined by the Director of Fisheries are manifold and involve capture, transport, marketing, preservation, and expansion. Prominently mentioned are the widespread overfishing and illegal fishing with explosives and poisons which are depleting grounds near shore. Transportation and icing facilities are considered inadequate or too expensive for a large-scale movement of fresh fish and, as a result, there is a saturation of supplies at points of production and scarcities in inland areas. Marketing is done through roundabout channels, with middlemen profiteering at the expense of producers and consumers. The quality and storage life of preserved fish are unsatisfactory because of substandard materials, antiquated methods, and allegedly unsanitary conditions. Disposal of swamplands for conversion of fishponds involves conflicting interests of the Bureau of Forestry and the Bureau of Fisheries. Culture of bangos in fishponds is hampered by a scarcity of fry. The Bureau of Fisheries, in the interest of increasing fish production, promoting modern fishing techniques, and curbing unsound fishing practices, is engaged in research, technical assistance, and regulatory activities. Facilities are limited, however. CHAPTER VI Mining Mineral exploration and exploitation in the Philippines have barely scratched the surface of the country's potentialities and have been limited. generally to deposits already known in the Spanish occupation period or earlier. Probably less than 5 percent of the total land area has been explored for minerals. Significant geological survey work has been done recently, however, and is continuing, with the main concentration on coal and base metals. Important increases in reserves have already been established for some minerals, particularly chromite, copper, and iron. Petroleum exploration has shown no signs of success. Mining activities to date have centered chiefly on gold, iron, copper, chromite, and manganese. There is a small output of byproduct zinc and lead, and some coal is produced as well as several other nonmetallic minerals. Native sulfur and sulfurbearing pyrites are receiving special attention in connection with fertilizer manufacture. Although overall production of minerals reached a record level in 1953 by value, the physical volume of production was still somewhat short of the prewar level. Among the metallics, gold showed the greatest lag in volume and copper metal and manganese ore also failed to meet their prewar marks. On the other hand, chromite and iron ore, especially the former, registered advances. Recent Philippine mineral production is given, by volume, in table 4. Problems affecting the future of mining in the Philippines include the high costs of labor and equipment; declining, limited, or unstable markets; a shortage of skilled mine labor and trained technical personnel; and the timidity of venture capital. The market position of gold is especially weak and while gold remains the first-ranking metallic by value it is far less important in the Philippine mineral picture than before the war and its future is doubtful. Chromite, copper, and iron ore are in favorable positions and the nonmetallics have a fairly stable home market. METALLIC MINERALS Gold The principal gold-mining district is Mountain Province, Luzon. Production of gold in 1953 amounted to 480,625 troy ounces valued at about 47 million pesos. Ten mines were in operation at the beginning of the year, but by the end of the period three had ceased activities at least temporarily. Most companies are reported to be unable to operate at a profit because of high costs and the weakness of the world market for gold. The Government has provided tax relief for the industry and permits 100 percent of production to be sold on the free market. In addition, a direct subsidy plan was approved in 1954 to maintain marginal gold producers in operation. Base Metals Base metals mined in the Philippines are iron, copper, chromite, and manganese. Lead and zinc are produced as byproducts of gold mining, as is some of the copper. Iron ore reserves are now believed to total about 32 million tons, exclusive of nickeliferous lateritic ores estimated at about 1 billion tons. High-grade ores (about 60 percent Fe) are in excess of 15 million tons. Official and private explorations, including aeromagnetic surveys, are under way and it is hoped that more precise data may be forthcoming in the near future. The high-grade iron ores, providing almost the entire current commercial output, are mined principally in the Province of Camarines Norte, southern Luzon, and on Marinduque and Samar íslands. The lower grade ores, available in especially large quantities in Suriagao Province, northern Mindanao, are not exploited commercially except possibly for some with a high sulfur content. Investigations are under way to determine possibilities for commercial recovery of nickel from deposits in nickeliferous serpentine below the Suriagao iron ore body. The nickel content of these deposits is estimated at 5 to 8 percent. Production of iron ore has been on an uptrend in each postwar year and in 1953 reached 1.2 million metric tons (53 to 58 percent Fe), about half of which was from a single mine in Camarines Norte. All the ore was exported to Japanese steel interests. At present, the ore is sold as directshipment ore but plans call for the installation of large mill facilities. If the Japanese steel industry continues to look to the Philippines for a large share of its iron ore requirements, Philippine producers should have a profitable future, but there would appear to be no other likely foreign outlet, and the use of iron ore in a domestic steel industry is uncertain. Japanese interests have been directly interested in some recent iron ore developmental activities and if permitted may invest in the development of these resources. Copper ore reserves are now said to be in excess of 5 million tons. Copper is the chief minable mineral in deposits located in Mankayan, Mountain Province; Rapu Rapu Island, Albay Province; Antique and Capiz Provinces, Panay Island; and Tumbagaan Island, Sulu Archipelago. Complex ore deposits also contain copper and thus some copper is mined as a byproduct, generally in the production of gold. In 1953, metal contained in copper concentrates and ores of Philippine production totaled nearly 13,000 metric tons. One company in Mountain Province was responsible for over 90 percent of this amount. Copper is exported to the United States in the form of concentrates and to Japan in the form of high-grade ore. Some consideration has been given by private interests to installations of copper smelters. A custom smelter which operated before the war was destroyed and never rebuilt. Sulfur-bearing pyrites are produced by the Rapu Rapu mine for the Government's fertilizer plant. Whether Philippine copper output will increase substantially is dependent on price levels, but potentialities are substantial. The principal known chromite deposits in the Philippines are located in the Province of Zam In bales, Luzon. Additional reserves are in Surigao and Misamis Oriental on Mindanao as well as in a number of other areas. Metallurgical chromite reserves are currently estimated at 1.7 to 1.8 million tons, while refractory grades are said to be available in amounts of 8 to 9 million tons. An ore body in Zambales is considered one of the largest refractory chromite deposits in the world. Production and trade for both types of chromite have expanded sharply since the war. 1953, output of refractory chromite reached 468,549 metric tons (32 to 36 percent Cr2O3) and metallurgical chromite, 88,541 tons (42 to 48 percent Cr2O). One Zambales mine accounted for the bulk of the refractory production. Assuming favorable market conditions, Philippine chromite should fare well in the long run because of expanding world needs. At the end of 1954, however, the short-term outlook was clouded by the weakening of the market. The United States is the chief outlet, followed by Japan. Manganese deposits are found in many parts of the Philippines but individually they are not extensive and they are of rather low grade. Principal producing deposits are in Busuanga Island, Palawan; Siquijor Island, Negros Oriental; Anda and Guindulman, Bohol; and Lamit Bay, Camarines Sur. Mining operations appear to have greatly depleted the highest grades of known manganese ore reserves and the future of the industry may depend on whether lower grade ores and perhaps fines can be processed into marketable form. Construction of a 50-ton (per day) sintering plant by one company in Bohol may encourage other manganese ore producers to establish benefaction plants and thus help revitalize the industry. Output of manganese ore in 1953 was 21,508 metric tons (40 to 49 percent Mn). Japan was the principal outlet in that year followed by the United States. Two new mineral developments are of interest. Exploration revealed commercially exportable resources of mercury in Palawan and by the end of 1954 a company had plans well under way for exploitation. The discovery of uranium was announced and, at the year end, a company was planning to mine uranium in combination with copper, molybdenum, and gold. NONMETALLIC MINERALS Fuels Coal is found in almost all of the islands of the Philippines and geologic structures and other surface indications suggest the existence of oil deposits. Known Philippine coals are bituminous, subbituminous, and lignitic, with small quantities of high-grade coal up to semianthracite in a few |