Number of Establishments Dropped to 187
- The 2003 Annual Survey of Philippine Business and Industry (ASPBI) estimated the total number of establishments engaged in mining and quarrying activities to be 187, down by 41percent from the 317 establishments in business operations during the year 2001. The number of establishments in all industries under this sector registered negative growth rates ranging from 50 percent for the stone quarrying, clay and sand pits industry and 33.1 percent for the non-metallic mining and quarrying industries. Figure 1 shows a comparison of the total number of mining and quarrying establishments in 2003 and 2001.
Employment likewise declined by 19 Percent to 11,015
- Employment dropped by 19 percent to 11,015 workers in 2003 from 13,597 workers in 2001. Metallic mining industry, although comprising only 12.3 percent of the total number of establishments, still employed the biggest number of workers reaching to 8,139 workers or 73.9 percent of total employment for the sector. Figure 2 shows the distribution of employment by industry in 2003.
Average Monthly Pay of a Mine and Quarry Worker Increased by 20.4 Percent in Real Terms
- Total compensation paid in 2003 amounted to P2.1 billion or an average monthly compensation of P15,932 per worker. Compared to the average monthly compensation of P12,421 in 2001, average pay increased by 28.3 percent in nominal terms. In real terms, however, average compensation per worker increased by only 20.4 percent.
- Industry comparison still showed that non-metallic mining industry continued to pay the highest average monthly compensation of P33,655 per worker while stone quarrying, clay and sand pits paid the lowest amounting to only P10,539. Figure 3 shows the average monthly compensation by industry in 2003.
Total Value of Output Grew by 3.1 Percent to P14.5 billion
- The total value of output generated in 2003 by all mining and quarrying establishments was estimated at P14.5 billion from P14 billion recorded in 2001. Total value of output for the sector managed to grow by 3.1 percent on account of the favorable growth (265.9 percent) experienced by the non-metallic mining and quarrying industry, particularly by the extraction and production of crude petroleum and natural gas sub-industry and stone quarrying, clay and sand pits industry (21.4 percent). Figure 4 compares the value of output by industry in 2003 and 2001.
- Of the total value of output in 2003, metallic mining industry accounted for more than half (53.2 percent) of the total value of output as it grossed P7.7 billion.
Labor Productivity Increased to P758,694
- Labor productivity, the ratio of census value added per paid employee, was valued in 2003 at P758,694. Compared to the labor productivity of P423,925 in 2001, labor productivity increased by 79 percent. Figure 5 compares labor productivity by industry for 2003 and 2001.
- Workers in the non-metallic mining industry showed the highest labor productivity at P2.6 million.
Scope and Coverage
The 2003 Annual Survey of Philippine Business and Industry (ASPBI) aimed to collect and generate information on the levels, structure and trends of industries and businesses in the entire country. It has the calendar year, 2003, for its reference period. One of the 14 sectors covered in the survey is the mining and quarrying sector.
Sample establishments of the 2003 ASPBI were selected using one-stage stratified systematic random sampling. However, establishments under the mining and quarrying, electricity, gas and water sectors were completely covered.
The response rate is 96 percent of the 302 establishments for the mining and quarrying sector. Adjustments for non-response were made through imputations.
Concepts and Definition of terms
Establishments - An economic unit under single ownership or control, i.e., under a single legal entity, engaged in one or predominantly one kind of economic activity at a single fixed location, and having permanency of assets in its premises during the operation. It is also defined as the unit that is engaged in the production of the most homogenous group of goods and services, usually at one location, but sometimes over a wider area, for which separate records are available that can provide data concerning the production of these goods and services and the materials, labor and physical resources used in this production.
Mining Establishments - Mining camp engaged in the exploration, extraction, dressing and beneficiating of minerals such as coal, ores, crude petroleum, and natural gas.
Quarrying Establishments - Firm or company engaged in the extraction from the earth of building and monumental stone, clay, sand and gravel; guano gathering and salt evaporation.
Economic activity or business is the activity of the establishment as classified under the 1994 Philippine Standard Industrial Classification (PSIC). Generally, the main activity of the establishment is the establishmens principal source of income. If the establishment is engaged in several activities, its main activity is that which earns the biggest income or revenue.
Average total employment (ATE) - ) is the sum of the number of persons who worked in or for this establishment for all months of the year divided by 12, regardless of the number of months the establishment is in operation.
Total Employment - Employment includes all persons who worked in or for the establishment as of November 15, 2001.
Paid employees - 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, workers receiving pure commissions only and workers on indefinite leave.
Working owners - are owners who are actively engaged in the management but do not receive regular pay, i.e., not included in the payrolls. Managers and directors of corporations working for pay are reported as managers.
Unpaid workers - are persons working for at least one-third of the working time normal to the establishment and do not receive regular pay.
Salaries and wages - are payments in cash or in kind to all employees, prior to deductions for employees contributions to SSS/GSIS, withholding tax, etc. Included are total basic pay, overtime pay and other benefits.
Overtime Pay - are payments given for extra hours worked.
Other benefits - include bonuses, cost of living allowances, commutable transportation and representation allowances, food, housing, commissions paid to salaried employees, separation, retirement, terminal pay, gratuities, etc. Excluded are cost of uniform/working clothes and reimbursable transportation and representation allowances.
Employer's Contribution to SSS/GSIS and the like - refers to payments made by the establishment on behalf of the employees. Examples are SSS, GSIS, Employees Compensation Commission (ECC), Philhealth and PAGIBIG.
Revenue - includes cash received and receivables for goods sold and services rendered. Valuation is at producer's prices (ex-establishment), net of discounts and allowances, including duties and taxes but excluding subsidies.
Cost - refers to all expenses incurred during the year whether paid or payable. Valuation is at market 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.
Indirect taxes - refer to all taxes, other than income tax, incidental to the production or sale of goods and services, which are chargeable as expenses including business license, BIR stamps, real estate tax and other local taxes.
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 or production and to protect it against competition.
Fixed assets - are physical assets expected to have productive lives of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, other structures and land improvements, transport equipment, computers and peripherals, telecommunications equipment and apparatus, other machinery and equipment including furniture and fixtures, and cultivated assets.
Book value of fixed assets - is the initial value or acquisition cost of fixed assets less the accumulated depreciation.
Depreciation - is the total amount set aside for the year to cover the decrease in value of fixed assets owned by the establishment because of foreseen obsolescence, wear and tear as a result of operation and normal amount of accidental damage.
Capital expenditures - for fixed assets include cost of acquisition of new and used fixed assets; fixed assets produced by the establishment for its own use; major alterations, additions and improvements to fixed assets, whether done by others or on own account. Fixed assets received from other establishments belonging to the same enterprise are valued as though purchased.
Gross additions to fixed assets - is equal to capital expenditures less sale of fixed assets, including land.
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 should be at current replacement cost in purchasers (market) prices. Replacement cost is the cost of an item in terms of its present price rather than its original cost.
Finished products inventory - refer to the goods made by the establishment which are ready for sale/shipment as of a reference date. Valuation is at producers price.
Work-in-process inventory - inventory refers to the value of all materials which have been partially processed by the establishment but which are not usually sold or turned over to other establishment without further processing. Valuation is at producers price.
Change in inventories - is computed as the total value of ending inventory less the total beginning inventory.
Census value added - represents the difference between the value of output and total costs of materials and supplies consumed, fuels purchased, electricity purchased, industrial services done by others and goods purchased for resale.
Value added - represents the sum of census value added and value of non-industrial services done for others less the cost of non-industrial services done by others and other costs.
Detailed Statistical Tables
The detailed tables at the national and regional levels are available upon request from the Industry Statistics Division, National Statistics Office, 4th Floor Solicarel Bldg II, Ramon Magsaysay Blvd., Sta. Mesa, Manila Tel. No. (062) 716-39-32.
Source: National Statistics Office