Farmers and residents of Cabuyoan, Panganiban reportedly resorted to digging for coal due to the successive drops in the buying price of abaca fiber and the surge in prices of basic commodities, especially rice, in recent months.
This was apparently the basis of the Sangguniang Panlalawigan’s decision to temporarily suspend the implementation of Provincial Ordinance No. 006-2013, which declared Catanduanes as a “mining-free” zone, last Oct. 12, 2023.
The measure was approved unanimously by all PBMs present, with PBM Santos Zafe as the only non-signatory due to his absence during the session.
Resolution No. 809-2023, authored by PBM Carlo Magno Guerrero I and PBM Camille Qua, enacted Provincial Ordinance No. 025-2023 that suspended the “mining-free” ordinance as far as small-scale coal mining is concerned for a period of one (1) year from Oct. 12, 2023 to Oct. 13, 2024.
Cabuyoan barangay captain Elmer Casinsinan had submitted a letter to the provincial board transmitting the appeal of residents who sought permission to explore small-scale coal mining practices at the barangay as a temporary source of livelihood in the community.
The matter was referred to the SP Joint Committees on Environment and Natural Resources and Ways and Means during the 39th Regular Session on Sept. 25.
On Oct. 12, two officials from the Department of Energy (DOE) – OIC-Chief Science Research Specialist Elmer Altomea and OIC Supervising Science Research Specialist Alvaine Ibarriola – attended a consultative meeting with the provincial government to discuss among others the appeal of the Cabuyoan residents and the position of the DOE favoring small-scale mining of coal in Catanduanes without disregarding compliance with Philippine mining laws, regulations and issuances.
Citing the necessity of introducing alternative livelihood sources for residents of the province, the board decided to allow small scale mining of coal without causing damage to declared protected areas and to address the challenges of diminishing livelihood opportunities and adverse effects of escalating inflation.
It is claimed that illegal coal extraction in Cabuyoan started as early as April this year, just two months after buying prices of abaca fiber began falling in the local market.
Data gathered by the Philippine Fiber Industry Development Authority (PhilFIDA) showed that the buying price for I and G grades of fiber, which account for majority of the fiber produced in Catanduanes, fell by 13% and 11%, respectively, in February 2023.
Trading price of I and G fiber decreased from P78 and P54 per kilo to P68 and P48, respectively, during the month.
In April, the price was slashed to P62 and P42, followed by another price drop in June which saw I grade fiber being bought at a low of P56 and G fiber at P38.
On the other hand, the price of “JK” low-grade fiber plunged from P49 per kilo in December 2022 to just P25 to P30 kilo by August 2023, data showed.
Overall, the abaca fiber market was adversely impacted by the reduction in buying price that ranged from 23 percent (I fiber) to as much as 38 percent (JK fiber).
PhilFIDA fiber production statistics for the first nine months of 2023 also indicated that overall abaca fiber production in Catanduanes fell by 5%, from 75,244.70 bales (one bale is 125 kgs.) in 2022 to 71,566.75 bales this year.