Number of establishments up by 188.2 percent
The final results of the 2012 Census of Philippine Business and Industry (CPBI) showed that there were 317 establishments engaged in mining and quarrying activities in the formal sector of the economy. More than half (52.4% or 166 establishments) of the total count were establishments with total employment of 20 and over while the remaining 47.6 percent (151 establishments) were establishments with total employment of less than 20.
Sand and gravel quarrying led among the 21 industry sub-classes of the sector with 77 establishments accounting for 24.3 percent of the total count. Gold ore mining ranked second with 40 establishments or 12.6 percent. Limestone quarrying and extraction of salt followed with 26 establishments (8.2%) each. Other leading industries with more than five percent share in terms of number of establishments were as follows:
- Nickel ore mining, 25 establishments (7.9%)
- Stone quarrying, clay and sand pits, n.e.c., 22 establishments (6.9%)
- Support activities for other mining and quarrying, 20 establishments (6.3%)
The number of mining and quarrying establishments in 2012 was higher by 188.2 percent from 110 establishments reported in 2010. The positive growth was mainly brought by the newly listed establishments in the 2011 and 2012 List of Establishments.
Among industries, sand and gravel quarrying posted the highest increase of 1,000.0 percent from the 7 establishments recorded in 2010. Three industries recorded three-digit increases: stone quarrying, clay and sand pits, n.e.c. (175.0%), gold ore mining (150.0%) and extraction of salt (136.4%)
Figure 1 displays the percentage distribution of all mining and quarrying establishments by industry sub-class in 2012.
Across the country, Central Luzon recorded the highest number of mining and quarrying establishments with 37 or 11.7 percent of the total. Central Visayas followed closely with 36 establishments (11.4%). Davao Region came next with 30 establishments (9.5%). Meanwhile, no mining and quarrying establishment was located in Autonomous Region in Muslim Mindanao in 2012.
Figure 2 shows the distribution of all mining and quarrying establishments by region in 2012.
Three in ten employees work in nickel ore mining establishments
Total employment of all mining and quarrying establishments reached 38,825 in 2012, an increase of 44.7 percent from 26,834 workers recorded in 2010.
Almost one-third (31.8%) of the total employment or 12,362 workers were employed by nickel ore mining establishments, followed by copper ore mining with 8,242 workers or 21.2 percent share. Gold ore mining came next with 6,896 workers or 17.8 percent share. Figure 3 shows the distribution of employment for all mining and quarrying establishments by industry sub-class in 2012.
The average number of workers per establishment for the sector was recorded at 122. Among industries, copper ore mining employed the highest average number of workers per establishment with 687 employees. This was followed by nickel ore mining with 494 workers.
By region, establishments located in Caraga registered the highest average number of workers per establishment with 381 workers. This was followed by establishments in Cordillera Administrative Region (CAR) with 364 workers per establishment. Establishments in Western Visayas with 211 workers and Zamboanga Peninsula with 176 workers per establishment came next.
Extraction of natural gas pays the highest compensation
Total compensation paid by the sector to its employees in 2012 amounted to PHP10.3 billion, reflecting 45.2 percent increase from PHP7.1 billion two years ago. The computed average annual compensation of PHP266,302 per employee in 2012 was slightly higher by 0.7 percent than the previous level of PHP264,438 in 2010.
Two industries paid an annual average compensation of more than a million pesos namely: extraction of natural gas (PHP1.9 million) and extraction of crude petroleum (PHP1.3 million).
Moreover, the following industries paid more than the national annual average compensation of PHP266,302:
- Oil and gas extraction activities on a fee or contract basis, PHP842,374
- Support activities for other mining and quarrying, PHP435,526
- Copper ore mining, PHP365,909
Figure 4 presents the average annual compensation of employees for all mining and quarrying establishments by industry sub-class in 2012.
Value of output stands at PHP191.3 billion
In 2012, value of output generated by all mining and quarrying establishments was estimated at PHP191.3 billion, increasing by 90.6 percent compared with PHP100.4 billion produced in 2010.
Extraction of natural gas produced more than one-third (34.9%) or PHP66.8 billion of the total value of output. This was followed by nickel ore mining and copper ore mining with output share of 21.5 percent (PHP41.2 billion) and 19.3 percent (PHP36.9 billion), respectively.
Figure 5 shows the percentage distribution of value of output for all mining and quarrying establishments by industry sub-class in 2012.
Among regions, mining and quarrying establishments located in MIMAROPA generated the highest value of output of PHP66.8 billion or 34.9 percent of the total. Establishments in Caraga came in second with PHP34.4 billion (18.0%), followed by Central Visayas with PHP20.8 billion (10.9%).
Copper ore mining spends the most
Total expense incurred in 2012 by all mining and quarrying establishments summed up to PHP111.9 billion.
The top two industries accounted for almost half (47.7%) or PHP53.3 billion of the total expense. Copper ore mining led the industries spending PHP27.4 billion (24.5%), followed closely by nickel ore mining spending PHP25.9 billion (23.2%). Extraction of natural gas placed third with total expense of PHP18.7 billion (16.7%) and mining of hard coal ranked fourth with PHP17.3 billion (15.5%).
By region, establishments in MIMAROPA spent the highest at PHP20.8 billion or 18.6 percent of the total expense. This was followed by establishments in Caraga and Western Visayas spending PHP18.6 billion (16.6%) and PHP 16.2 billion (14.4%), respectively.
Extraction of natural gas yields the highest returns
Income per expense ratio for the sector stood at 1.67. This means that for every peso spent, corresponding income of PHP1.67 was generated.
By industry, extraction of natural gas recorded the highest income per expense ratio of 3.41, followed by nickel ore mining with 1.62. Completing the top five industries with high returns were as follows:
- Silica sand and silica stone quarrying (1.42 income per peso expense)
- Chromite ore mining (1.30 income per peso expense)
- Gold ore mining (1.30 income per peso expense)
- Copper ore mining (1.25 income per peso expense)
On the other hand, support activities for other mining and quarrying (0.99), and mining of iron ores (0.68) both posted less than 1.0 income-expense ratio.
By region, establishments in SOCCSKSARGEN registered the highest return at 5.12 income per peso expense. Establishments in MIMAROPA and Caraga followed next with respective income per peso expense of 3.09 and 1.84.
Value added posts 109.7 percent growth
Value added generated by mining and quarrying establishments reached PHP114.2 billion in 2012, representing an increase of 109.7 percent from PHP54.5 billion in 2010.
Extraction of natural gas generated more than half (50.1%) or PHP57.2 billion of the total value added. Nickel ore mining and copper ore mining contributed PHP21.8 billion (19.1%) and PHP17.9 billion (15.7%), respectively.
The growth in value added to PHP114.2 billion (109.7%) in 2012 was mainly attributed to the three-digit increases in chromite mining (631.7%) posting PHP174.7 million in 2012 from PHP23.9 million in 2010, and sand and gravel quarrying (355.3%).
Workers in extraction of natural gas are the most productive
Ratio of value added to employment, a measure of labor productivity, was recorded at PHP2.9 million per worker in 2012. This indicates an improvement in productivity by 44.9 percent from PHP2.0 million in 2010.
Establishments engaged in extraction of natural gas were the most productive in 2012, generating PHP124.7 million per worker. This was followed far behind by copper ore mining with PHP2.2 million per worker.
Figure 6 shows the labor productivity for all mining and quarrying establishments by industry sub-class in 2012.
The highest productivity among regions was recoded in MIMAROPA, estimated at PHP23.2 million per worker, followed by National Capital Region (NCR) with PHP4.9 million per worker and Bicol Region with PHP2.2 million per worker.
Gross addition to tangible fixed assets reaches PHP27.0 billion
Gross addition to tangible fixed assets acquired in 2012, defined as capital expenditures less sale of fixed assets, reached PHP27.0 billion higher by of 11.7 percent from PHP24.2 billion recorded in 2010.
Among industries, copper ore mining acquired PHP8.3 billion or 30.8 percent of the total value of gross addition to tangible fixed assets, followed by extraction of natural gas with PHP7.3 billion or 26.9 percent share.
MIMAROPA accounted for the biggest total value in gross addition to tangible fixed asset at PHP8.3 billion or 30.9 percent of the total. Central Visayas followed with PHP6.4 billion (23.5%). Other top contributors and their corresponding shares were as follows:
- Caraga, PHP3.2 billion (11.8%)
- CAR, PHP2.3 billion (8.4%)
- NCR, PHP2.2 billion (8.1%)
Total subsidies received amounts to PHP369.4 million
Subsidies granted in 2012 by the government to all mining and quarrying establishments amounted to PHP369.4 million, higher by 59.3 percent from PHP231.8 million in 2010.
Nickel ore mining, and stone quarrying, except limestone and marble, were the recipients of subsidies in 2012. The former received PHP367.9 million or 99.6 percent of the total while the latter got the remaining amount of PHP1.4 million or 0.4 percent of the total subsidies.
This Special Release presents the final results of the 2012 Census of Philippine Business and Industry (CPBI) for the Mining and Quarrying Sector.
The 2012 CPBI is a forerunner of the 2006 CPBI and one of the designated statistical activities of the former National Statistics Office (NSO) now Philippine Statistics Authority (PSA). Data collected from the census provide information on the levels, structure, performance, and trends of economic activities of the country. It also serves as benchmark information in the measurement and comparison of national and regional economic growth.
The census was conducted nationwide in April 2013 with the year 2012 as the reference period of data, except for employment which is as of November 15, 2012.
The income and expense account in the Financial Statement of establishment was adopted in the design of sectoral questionnaires to capture data for the 2012 CPBI. This allowed respondents of the census an ease in accomplishing the questionnaires. Income and revenue have the same concept in recording financial transaction of establishments while expense is cost incurred on a consumed basis.
Data are presented at the national, regional and industry sub-class or 5-digit 2009 Philippine Standard Industrial Classification (PSIC).
The conduct of the CPBI is governed by authority of the following legislative acts and presidential directives:
- Commonwealth Act No. 591 (An Act to Create the Bureau of the Census and Statistics to consolidate statistical activities of the government therein)
- Presidential Decree No. 418 (Reconstituting the Bureau of the Census and Statistics as a new agency to be known as the National Census and Statistics Office, under the administrative supervision of the National Economic Development Authority)
- Executive Order No. 121 (Reorganization Act of the Philippine Statistical System)
- Executive Order 352 (Designation of Statistical Activities that will generate critical data for decision-making by the Government and the Private Sector)
- Executive Order 5 (Strengthening the National Statistics Office)
Scope and Coverage
The 2012 CPBI covered establishments engaged in the formal sector of the economy classified by economic activity under the 2009 PSIC, namely:
- Agriculture, Forestry, and Fishing (A)
- Mining and Quarrying (B)
- Manufacturing (C)
- Electricity, Gas, Steam, and Air Conditioning Supply (D)
- Water Supply; Sewerage, Waste Management and Remediation Activities (E)
- Construction (F)
- Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (G)
- Transportation and Storage (H)
- Accommodation and Food Service Activities (I)
- Information and Communication (J)
- Financial and Insurance Activities (K)
- Real Estate Activities (L)
- Professional, Scientific and Technical Activities (M)
- Administrative and Support Service Activities (N)
- Education (P)
- Human Health and Social Work Activities (Q)
- Arts, Entertainment, and Recreation (R)
- Other Service Activities (S)
The census was confined to the formal sector of the economy, which consists of the following:
- All establishments with total employment (TE) of 10 and over
- All establishments with TE of less than 10, except those with legal organization classified as single proprietorship and economic organization classified as single establishments.
Unit of Enumeration
The units of enumeration for the 2012 CPBI are the establishment and enterprise. However, this special release is confined to the results of mining and quarrying sector with establishment as the unit of enumeration.
An establishment is defined as an economic unit under a single ownership or control which engages in one or predominantly one kind of activity at a single fixed location.
Classification of Establishments
An establishment is categorized by its economic organization, legal organization, industrial classification, employment size, and geographic location.
Economic Organization refers to the organizational structure or role of the establishment in the organization. An establishment may be single establishment, branch, establishment and main office with branches elsewhere, main office only, and ancillary unit other than main office.
Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment may be single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, and cooperative.
The industrial classification of an economic unit was determined by the activity from which it derives its major income or revenue. The 2009 PSIC was utilized to classify economic units according to their economic activities.
The size of an establishment is determined by its total employment (TE) as of a specific date.
Geographic Classification. Establishments are also classified by geographic area using the Philippine Standard Geographic Code (PSGC) classification.
All establishments in the formal sector for the Mining and Quarrying Sector were covered on a 100 percent or on a certainty basis because of their relatively small number.
The estimate of the total of a characteristic in an industry domain in each geographic domain (region) is
p = 1, 2,..., 17 regions (geographic domains)
xpj = value of the jth establishment in an industry domain within each region
j = 1, 2, 3, …, mp establishments
mp = number of establishments in an industry domain within each region
National level estimate of a characteristics by industry domain was obtained by aggregating separately the estimates for the particular industry domain from all the regions.
Response rate for Mining and Quarrying Sector was 91.30 percent (535 out of 586 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or transferred, out of scope, refusals, duplicates and referrals.
Reports of the remaining non-reporting establishments were imputed based on established imputation methods and from other available administrative data sources. However, reports of establishments which were found to be duplicates and out of business in 2012, were not imputed.
Limitation of Data
The 2012 CPBI covered only the formal sector of the economy.
Concept and Definitions of Terms
Economic activity is the establishment’s source of income. If the establishment is engaged in several activities, its main economic activity is that which earns the biggest income or revenue.
Total employment is the number of persons who worked in for the establishment as of November 15, 2012.
Paid employees are all persons working in the establishment and receiving pay, as well as those working away from the establishment paid by and under the control of the establishment. Included are all employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers, receiving pure commissions only, and workers on indefinite leave.
Compensation includes salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer in behalf of the employees such as contribution to SSS/GSIS, ECC, PhilHealth, Pag-ibig, etc.
Salaries and wages are payments in cash or in kind to all employees, prior to deductions for employee’s contributions to SSS/GSIS, withholding tax, etc. Included are total basic pay, overtime pay and other benefits.
Income or Revenue refers to cash received and receivables for goods/products and by-products sold and services rendered.
E-commerce refers to the selling of products or services over electronic systems such as Internet Protocol-based networks and other computer networks. Electronic Data Interchange (EDI) network, or other on-line system. Excluded are orders received from telephone, facsimile and e-mails.
Cost refers to all expenses incurred during the year whether paid or payable. Valuation is at purchaser prices including taxes and other charges, net of rebates, returns and allowances. Goods and services received by the establishment from other establishments of the same enterprise are valued as though purchased.
Expense refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis.
Intermediate expense are expenditures incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity and water purchased, and industrial services done by others plus beginning inventory of materials, supplies and fuels less ending inventory of materials, supplies and fuels.
Value added is gross output less intermediate cost. Gross output for the mining and quarrying sector is value of output plus non-industrial services done for others (except rent income from land). Intermediate input is intermediate expenses plus non-industrial services done by others (except rent expense for land) and other costs.
Value of output represents the sum of the receipts from products and by-products sold, industrial services, and goods sold in the same condition as purchased less the cost of goods sold; and value of fixed assets produced on own account and change in inventories of finished products and work-in-progress.
Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.
Change in inventories is equivalent to the value of inventories at the end of the year less the value of inventories at the beginning of the year.
Inventories refer to the stock of goods owned by and under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation is at current replacement cost in purchaser prices. Replacement cost is the cost of an item in terms of its present price rather than its original cost.
Subsidies are all special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry.
Total assets are resources including land owned and/or controlled by the establishment as a result of past transactions and events from which future economic benefits are expected to flow to the establishment.