MINING INDUSTRY

A large part of Sipalay is covered by Mineral Production Sharing Agreements (MPSAs), mining claims or pending applications for mineral exploration.

Since commercial mining operations were discontinued with the closure of the MMC and Philex mines, unemployment rose to an unprecented level, the effects of which are still palpable. Only skeletal forces remain employed today in these companies, mainly to provide security and protection for the companies' assets and to implement the companies' rehabilitation and closure plans.

Given that mining claims in most of Sipalay still exist and new explorations are on-going, there is a strong likelihood of mining revival in the near future especially with the Mining Act and the national government's thrust to aggressively promote investment in this largely neglected sector of the economy. Despite the potential for high employment absorption and its relatively large contribution to the local and national economy, however, the local population is ambivalent about the mining industry's revival. While more recent experiences with Philex are encouraging, there are concerns about resource use conflicts and mining's compatibility with tourism development-a thrust being aggressively pursued by the local government to provide Sipalay residents diversified sources of income.

 

AGRICULTURE AND FISHERY PRODUCTION

Although Sipalay is considered an agricultural city, it is not dependent on the sugar industry, unlike most cities and towns in Negros Occidental. Thus, its economy has not been affected by the declining prices of sugar in the world market. Lowland agriculture in Sipalay consists largely of rice and corn farming with fruit production/orchard gradually being developed in the uplands in conjunction with agro-forestation. Banana, coconut, mango and coffee are already produced in Sipalay, as well as pineapple, guava and citrus. Planting of rootcrops, vegetables, and legumes are also done using the Bio-Intensive Gardening System (BIGS) and Communal Garden approaches. The areas along the river delta, which cover Barangay 3-Poblacion, Gil Montilla, Manlucahoc, Cabadiangan, Mambaroto, and Nauhang are suitable for the planting of these vegetables.

Out of the total land area devoted to rice production, only 44 percent is currently irrigated. There are already six existing irrigation systems and a program to improve irrigation facilities is being implemented through the National Irrigation Administration (NIA) tapping the Sipalay River as the main source of water to irrigate an additional 300 to 400 hectares or 35 percent of the irrigated rice land.

Various credit institutions such as the Land Bank of the Philippines-Sipalay Branch, NGOs, the City Government, the Provincial and the National Government and the Sipalay Multi-Purpose Cooperative provide the necessary assistance to farmers' cooperatives and small/ medium enterprises and commercial establishments. However, credit is still largely sought by the majority of the population from informal lenders charging high interest rates. This is due to the relative ease of securing loans from them without the need for so much documentation and bureaucratic delays often encountered when applying for formal credit.

Aside from farming, fishing is also a major source of income for the people of Sipalay. Some 2,548 households (21.31 percent of the total households) are engaged in fishing in Sipalay. Municipal fishing vessels fish along the stretch of the city coastline facing the western side of the Sulu Sea while Barangay 4, Maricalum, and Cayhagan are frequented by commercial fishers.

 

TRADE AND COMMERCE

Trade and commerce is gradually developing in the City. The table shows the existing number of business and commercial establishments and their classifications.

Inventory of Commercial and Business Establishments (2003)

Classification	Number	Examples
Manufacturing	5	Hollow block makers, etc.
Services	153	Food services, health services, beauty parlors, contractors, photocopiers, etc.
Agricultural Services/ Supplies	66	Rice and corn dealer, rice and corn mills, butcher, etc.
Retail/ Wholesale	421	Sari-sari stores, grocery stores, appliance dealers, etc.
Entertainment	21	Billiard halls, video houses, etc.
Transportation	329	Public Utility Vehicles, Pump boats, Gas stations, etc.

Source: Socio-Economic Profile of the City of Sipalay (2002-2004).

Cottage industries such as furniture making and native crafts production also thrive in the city.