Mining of non-ferrous metal ores except precious metals and quarrying of stone, sand and clay lead in terms of number of establishments
The preliminary results of the 2014 Annual Survey of Philippine Business and Industry (ASPBI) showed that there were 135 establishments with total employment (TE) of 20 and over engaged in mining and quarrying activities.
Among industry groups, both mining of non-ferrous metal ores except precious metals and quarrying of stone, sand and clay recorded highest in terms of number of establishments with 51 establishments each or a combined share of 75.6 percent out of the total. This was followed by support activities for other mining and quarrying; and mining and quarrying, n.e.c with nine establishments or 6.7 percent share each of the total.
Figure 1 displays the percentage distribution of mining and quarrying establishments with TE of 20 and over by industry group in 2014.
By region, Central Visayas registered the highest number of mining and quarrying establishments with 19 or 14.1 percent of the total. Caraga came in second with 17 establishments (12.6%), followed by CALABARZON with 16 establishments (11.9%). Meanwhile, no mining and quarrying establishment with TE of 20 and over was recorded in Autonomous Region in Muslim Mindanao (ARMM) in 2014. (Figure 2)
Mining of non-ferrous ore except precious metals employs the highest number
Total employment of mining and quarrying establishments with TE of 20 and over reached 35,767 workers in 2014. Of the total workforce, 35,706 workers or 99.8 percent were paid employees while the remaining 0.2 percent were working owners and unpaid workers.
Majority of the workers for this sector (27,656 or 77.3) was employed in mining of non-ferrous metal ores except precious metals. This was followed by mining of hard coal and quarrying of stone, sand and clay with 3,270 (9.1%) and 2,491 (7.0%), respectively.
Figure 3 shows the distribution of employment for mining and quarrying establishments with TE of 20 and over by industry group in 2014.
At the regional level, CARAGA employed the highest with 7,643 workers followed by Central Visayas with 6,385 workers. Davao Region and Cordillera Administrative Region (CAR) came in next with respective number of workers of 5,864 and 4,666.
The average number of workers per establishment for the sector was recorded at 265. Among industries, mining of non-ferrous metal ores except precious metals generated the highest average number of workers per establishment at 542 workers. This was followed by mining of hard coal with 467 workers per establishment. Other industries with average number of workers of more than 100 are as follows:
- Extraction of natural gas, 148 workers per establishment
- Support activities for other mining and quarrying, 117 workers per establishment
Extraction of natural gas industry pays the highest average annual compensation
Total compensation paid by the sector to its workers in 2014 amounted to PHP11.9 billion, translating into an average annual compensation of PHP334,583 per employee.
Industry wise, mining of non-ferrous metal ores except precious metals paid the highest total compensation of PHP9.6 billion or 80.2 percent of the total. This was followed by extraction of natural gas with PHP927.0 million (7.8%) and support activities for other mining and quarrying with PHP433.8 million (3.6%).
Extraction of natural gas earned an average annual compensation of PHP2.1 million, six times more than the sector’s average. This was followed by support activities for other mining and quarrying and mining of non-ferrous metals ores except precious metals with average annual compensation of PHP413,964 and PHP346,719, respectively.
Figure 4 presents the average annual compensation of employees for mining and quarrying establishments by industry group in 2014.
Mining of non-ferrous metal ores except precious metals industry generates more than half of the total value of output
In 2014, value of output generated by mining and quarrying establishments was estimated at PHP202.1 billion.
Combined value of the top two industries in terms of value of output generation amounted to PHP179.3 billion. Mining of non-ferrous metal ores except precious metals accounted for more than half (57.3%) and extraction of natural gas shares 31.4 percent of the total.
Figure 5 shows the percentage distribution of value of output for mining and quarrying establishments by industry group in 2014.
Among regions, MIMAROPA generated PHP74.1 billion or 36.7 percent of the total value of output. Caraga and Central Visayas followed with respective value of output shares of 26.4 percent (PHP53.3 billion) and 11.9 percent (PHP24.1 billion).
Total expense reaches PHP138.9 billion
Total expense in 2014 for mining and quarrying establishments with TE of 20 and over was estimated at PHP138.9 billion.
By industry group, mining of non-ferrous metal ores except precious metals incurred the biggest expense of PHP79.1 billion or 57.0 percent of the total. Mining of hard coal ranked second with PHP27.2 billion (19.5%). Extraction of natural gas came in third with a total expense of PHP20.9 billion (15.1%).
Across regions, Caraga incurred the highest expense amounting to PHP32.4 billion or 23.3 percent of the total. This was followed by MIMAROPA with PHP26.3 billion or 18.9 percent of the total. Completing the top five regions in terms of total expense are as follows:
- Western Visayas, PHP25.1 billion (18.1%)
- Central Visayas, PHP16.1 billion (11.6%)
- CAR, PHP11.9 billion (8.6%)
Extraction of natural gas records the highest returns
Income per expense ratio for establishments with TE of 20 and over stood at 1.50. This means that for every peso spent, corresponding income of PHP1.50 was generated.
Extraction of natural gas recorded an income per expense ratio of 2.76, the highest among industries. Mining of non-ferrous metal ores except precious metals and support activities for other mining and quarrying occupied second and third spots with respective ratios of 1.39 and 1.38.
Value added stands at PHP127.5 billion
Value added generated in 2014 by mining and quarrying establishments with TE of 20 and over summed up to PHP127.5 billion.
Among industries, mining of non-ferrous metal ores except precious metals generated more than half (PHP69.2 billion) of the total value added. Extraction of natural gas placed second with PHP54.6 billion or 42.8 percent share of the total. Support activities for other mining and quarrying ranked third with PHP4.3 billion (3.4%) in value added.
At the regional level, MIMAROPA contributed PHP61.3 billion or (48.1%) share to the total value added. Followed by Caraga with PHP30.6 billion (24.0%) and Central Visayas with PHP14.4 billion (11.3%). CAR and NCR came in next with PHP8.1 billion (6.3%) and 4.9 billion (3.8%), respectively.
Workers in extraction of natural gas industry are the most productive
The ratio of value added to employment, a measure of labor productivity, was recorded at PHP3.6 million per worker in 2014.
Among mining and quarrying industries, extraction of natural gas was the most productive industry in 2014, generating PHP122.9 million per worker. This was followed by support activities for other mining and quarrying (PHP4.1 million), mining of non-ferrous metal ores except precious metals (PHP2.5 million), and quarrying of stone, sand and clay (PHP0.5 million).
Figure 6 shows the labor productivity for mining and quarrying establishments with TE of 20 and over by industry group in 2014.
Mining of non-ferrous metal ores except precious metals contributes the biggest share in gross addition to tangible fixed assets
Gross addition to tangible fixed assets acquired in 2014 reached PHP28.4 billion.
By industry, mining of non-ferrous metal ores except precious metals acquired more than half of the total value of gross addition to tangible fixed assets amounting to PHP16.9 billion, followed by extraction of natural gas with PHP7.6 billion (26.8%).
MIMAROPA accounted for the highest gross addition to fixed asset at PHP8.0 billion or 28.1 percent of the total. Central Visayas followed with PHP7.3 billion (25.7%).
Other regions with significant contributions to tangible fixed assets are as follows:
- Cagayan Valley, PHP3.5 billion (12.4%)
- Caraga, PHP2.3 billion (7.9%)
- NCR, PHP2.2 billion (7.9%)
Total subsidies received amounts to PHP991 million
Subsidies granted by the government to mining and quarrying establishments with TE of 20 and over amounted to PHP991 million.
Establishments engaged in mining of non-ferrous metal ores except precious metals located in Caraga were the most recipient of subsidies in 2014 amounting to PHP974.9 million.
This Special Release presents the preliminary results of the 2014 ASPBI for the Mining and Quarrying sector for establishments with total employment of 20 and over.
The 2014 ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey provides information on the levels, structure, performance, and trends of economic activities of the formal sector in the entire country. The 2014 Survey of Tourism Establishments in the Philippines (STEP) was undertaken as a rider to this survey. The field operation of the 2014 ASPBI also integrated the data collection in updating the 2014 List of Establishments (ULE)
The survey was conducted nationwide in 2015 with the year 2014 as the reference period of data, except for employment data which is as of November 15, 2014.
Like the 2013 ASPBI operations, the data processing for this survey was decentralized to the Provincial Statistics Services Offices (PSSOs) as the provinces are near the establishments which are the data source of the survey
Data are presented at the national and industry sub-group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC).
The conduct of the 2014 ASPBI is authorized under the following:
Republic Act 10625 known as the Philippine Statistical Act of 2013 – (Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities). It shall be the policies of the State to effect the necessary and proper changes in the organizational and functional structures of the PSS in order to rationalize and promote efficiency and effectiveness in the delivery of statistical services.
Section 27 of Republic Act No. 10625 states that:
“… Respondents of primary data collection activities such as censuses and sample surveys are obliged to give truthful and complete answers to statistical inquiries. The gathering, consolidation and analysis of such data shall likewise be done in the most truthful and credible manner. Any violation of this Act shall result in the imposition of the penalty of one (1) year imprisonment and a fine of One hundred thousand pesos (P100,000.00). In cases where the respondent fails to give truthful and complete answers to such statistical inquiries is a corporation, the above penalty shall be imposed against the responsible officer, director, manager and/or agent of said corporation. In addition, such erring corporation, enterprise or business concerned, shall be imposed a fine ranging from One hundred pesos (P100,000.00) to Five hundred thousand pesos (P500,000.00)…”
Scope and Coverage
The 2014 ASPBI covered establishments engaged in 18 economic sectors classified 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, 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)
However, three (3) sectors of the 2009 PSIC are not covered. These are:
- Public Administration and Defense; Compulsory Social Security (O)
- Activities of Household as Employee. Undifferentiated Goods and Services Producing Activities of Household for Own Use (T)
- Activities of Extraterritorial Organizational Bodies (U)
The survey was confined to the formal sector of the economy, which consists of the following:
- Corporations and partnership
- Cooperatives and foundations
- Single proprietorship with employment of 10 and over
- Single proprietorships with branches
Hence, the 2014 ASPBI covered only the following economic units:
- All establishments with total employment (TE) of 10 and over, and;
- All establishments with TE of less than 10, except those establishments with Legal Organization = 1 (single proprietorship) and Economic Organization = 1 (single establishment), that are engaged in economic activities classified according to the 2009 Philippine Standard Industrial Classification (PSIC).
Frame of Establishments
The frame for the 2014 ASPBI was extracted from the 2014 List of Establishments (LE). The estimated number of establishments in operation in the country in 2014 totaled to 994,450. About 266,000 establishments (28.0% of the total establishments) belong to the formal sector of which 231,000 (87.0%) comprised the establishment frame. This frame was used to draw the sample establishments for the survey.
Unit of Enumeration
The unit of enumeration for the 2014 ASPBI is the establishment. 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.
Establishments with TE of 20 and over 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 for the certainty employment stratum in TE of 20 and over in an industry domain in each geographic domain (region) is
p= 1, 2,..., 17 regions (geographic domains)
xpj= value of the jth establishment with TE of 20 and over in an industry domain within each region
j= 1, 2, 3, …,mp establishments
mp= number of establishments with TE of 20 and over 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 for establishments with TE of 20 and over was 86.5 percent (149 out of 173 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
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 2014, were not imputed.
Limitation of Data
The 2014 ASPBI covered only the formal sector of the economy.
Concepts 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, 2014.
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 is the sum of 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 input. Gross output for the mining and quarrying sector is value of output plus income from non-industrial services done for others (except rent income from land). Intermediate input is intermediate expense plus expense for 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, income from industrial services done for others, 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.