Number of Establishments

The 2009 Annual Survey of Philippine Business and Industry covered a total of 100 Mining and Quarrying establishments in operation nationwide.

The sector was dominated by establishments engaged in Stone quarrying, clay and sand pits with 35 or 35.0 percent of the total. This was followed by Other non-metallic mining and quarrying with 18 establishments or 18.0 percent and Gold ore mining with 17 establishments or 17.0 percent of the total. Figure 1 displays the percentage distribution of Mining and Quarrying establishments by industry group in 2009.

Employment

In 2009, Mining and Quarrying establishments employed a total of 24,113 workers. Gold ore mining employed the most number of workers with 7,912 or 32.8 percent followed by Copper ore mining with 7,454 workers representing 30.9 percent of the total. Other metallic ore mining hired a total of 2,997 or 12.4 percent of the total employment. Figure 2 shows the distribution of employment of Mining and Quarrying sector for all employment sizes by industry group in 2009.

The average number of workers per establishment in the Mining and Quarrying sector was recorded at 241. Copper ore mining had the highest number with 828 workers per establishment while Gold ore mining had 465 workers in every establishment.

Compensation

Total compensation paid by employers in 2009 amounted to PHP6.8 billion, translating to an average annual compensation of PHP282,410 per worker.

Among industries, workers in the Extraction and production of crude petroleum and natural gas received the highest annual average pay of PHP1,471,888. Copper and Gold ore mining industry ranked second and third with average annual pay of PHP321,501 and PHP261,751, respectively. Figure 3 presents the average annual compensation of worker of Mining and Quarrying sector by industry group in 2009.

Value of Output

Value of output generated by all Mining and Quarrying establishments was estimated at PHP81.7 billion in 2009.

By industry group, Extraction and production of crude petroleum and natural gas generated the biggest output value of PHP24.1 billion or 29.5 percent, followed by Copper ore mining with PHP20.6 billion or 25.3 percent, and Gold ore mining with PHP14.2 billion or 17.4 percent of the total. Figure 4 shows the percent distribution of value of output of Mining and Quarrying sector for all employment sizes by industry group in 2009.

Cost

Cost for operating the industry totalled to PHP53.4 billion in 2009. This excludes compensation and social contributions paid by employers.

Among industry groups, Copper ore mining incurred the highest cost with PHP15.5 billion or 29.1 percent. Extraction and production of crude petroleum and natural gas followed with PHP10.8 billion or 20.3 percent and Gold ore mining with PHP9.4 billion or 17.7 percent of the total operating cost.

Revenue per Cost

Revenue per cost for Mining and Quarrying establishments was estimated at 1.56. This means that for every peso spent, corresponding revenue of PHP1.56 was generated. Among industries, Extraction and production of crude petroleum and natural gas had the highest revenue-cost ratio of 2.23. Placing second was Gold ore mining with a 1.61 ratio while Other metallic ore mining which recorded a ratio of 1.40 ranked third.

Value Added

Total value added generated in 2009 by all Mining and Quarrying establishments was estimated at PHP38.0 billion.

Among industries, Extraction and production of crude petroleum and natural gas contributed the biggest share amounting to PHP16.0 billion or 42.1 percent of total value added. Copper ore mining ranked a far second with value added of PHP7.6 billion or 20.1 percent, followed by Gold ore mining with PHP7.1 billion or 18.7 percent of the total.

Labor Productivity

Labor productivity, measured as value added per worker in 2009 was estimated at PHP1.6 million. Worker in the Extraction and production of crude petroleum and natural gas was the most productive valued at PHP34.6 million. Copper ore mining and Gold ore mining ranked second and third places with PHP1.0 million and PHP900.5 thousand per worker, respectively. Figure 5 shows the distribution of value added per worker of Mining and Quarrying establishments for all employment sizes by industry group in 2009.

Gross Addition to Tangible Fixed Assets

Gross addition to fixed assets, defined as capital expenditure less sale of fixed assets, acquired by all Mining and Quarrying establishments in 2009 was estimated at PHP5.1 billion.

Among industries, copper ore mining acquired more than half (PHP2.6 billion) of the total gross addition to fixed assets. Other top contributors in terms of gross addition to fixed assets and their corresponding shares were as follows:

• Gold ore mining with PHP916.4 million, (17.8%)
• Extraction and production of crude petroleum and natural gas with PHP244.2 million, (4.8%)
• Other metallic ore mining with PHP219.2 million, (4.3%)
• Other non-metallic mining and quarrying with PHP217.6 (4.2%).

Change in Inventory

Change in total inventory, defined as the total value of ending less beginning inventory, amounted to PHP338.6 million. Extraction and production of crude petroleum and natural gas recorded the highest change in inventory with PHP282.3 million. Gold ore and Other metallic ore mining reported a negative change in inventories amounting to PHP461.2 million and 188.6 million, respectively.

Subsidies

No subsidies was granted by the government to the Mining and Quarrying sector in 2009.

TECHNICAL NOTES

Introduction

The 2009 Annual Survey of Philippine Business and Industry (ASPBI), conducted in 2010 with 2009 as reference year, is a continuing activity of the National Statistics Office (NSO). It is a nationwide undertaking which aims to provide data on the structure and trends of economic activities in the country.

The data collected from 2009 ASPBI serves as reliable bases upon which the government and the private sector can formulate policies and evolve economic development plans. Specifically, the survey results are used in constructing the national and regional income accounts of the Philippine economy; formulating development strategies and monitoring plans/policies in the attainment of national and regional goals; determining and comparing regional economic structures and performance; valuating conditions of the economy, employment and income perspective in order to make more informed decisions; evaluating business options, assessing opportunities for new investments and estimating market shares of industries; and providing updates for the frame of establishments.

Legal Authority

The legal authority for the conduct of the economic census and surveys is provided by various legislative acts and directives.

Commonwealth Act No 591 of 1940 is the law that created the Bureau of Census and Statistics (now the National Statistics Office). This organic law empowers the Bureau, among other things, to prepare for and undertake all census of population, agriculture, industry and commerce.

Confidentiality of Information. Section 4 of CA 591 states that: "Data furnished to the Bureau of Census and Statistics . . . shall not be used as evidence in court . . .; nor shall such data or information be divulged to any person except to authorized employees of the Bureau of Census and Statistics...". This is to assure local businesses and industries operating in the country that as required by law, all data reported to NSO will be kept strictly confidential. All of the survey data products that will be published will include only summary information, and these will not identify any individual business.

E.O. 352 (Designation of Statistical Activities that will generate critical data for decision-making by the Government and the Private Sector, dated July 1,1996) approves the ASPBI, and other major censuses and surveys of the agency, as designated statistical activities of the Government whose data are considered critical in the formulation of economic development plans and policy decision making.

Other legislative acts and presidential directives, as follows, were enacted to strengthen the mandate of NSO.

PD 418 (Reconstituting the Bureau of the Census and Statistics, to be known as National Census and Statistics Office, under the administrative supervision of the National Economic and Development Authority, dated March 20, 1974)

EO 121 (Reorganization Act of the Philippine Statistical System, dated August 4, 1987)

EO No 5 (Strengthening the National Statistics Office, dated July 29, 1998).

Scope and Coverage

The 2009 ASPBI covered establishments engaged in 14 economic sectors classified under the amended 1994 Philippine Standard Industrial Classification (PSIC), namely:

• Agriculture, Hunting and Forestry (A)
• Fishing (B)
• Mining and Quarrying (C)
• Manufacturing (D)
• Electricity, Gas and Water Supply (E)
• Construction (F)
• Wholesale and Retail Trade; Repair and Maintenance of Motor Vehicles, Motorcycles and Personal and Household Goods (G)
• Hotels and Restaurants (H)
• Transport, Storage and Communications (I)
• Financial Intermediation (J)
• Real Estate, Renting and Business Activities (K)
• Private Education (M)
• Health and Social Work (N)
• Other Community, Social and Personal Service Activities (O)

The scope of 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

Unit of Enumeration

Like all other establishments surveys conducted by the NSO, the 2009 ASPBI unit of enumeration is the establishment. The establishment is defined as a unit which engages, under a single ownership or control, in one, or predominantly one kind of activity at a single fixed location.

In actual practice, however, there are difficulties in applying the ideal definition so the establishment is defined in operational terms to take into account the organization and record-keeping practices of certain sectors by making the single location and activity criteria more flexible. This necessitates the use of the kind-of-activity unit for certain sectors as the single location restriction is eliminated.

Taxonomy of Establishments

An establishment may be classified according to its: economic organization, legal organization, industry, employment size, and geographic location.

The 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.

The Legal Organization (LO) 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.

According to industrial classification, the main activity of an establishment is determined by the activity from which it derives its major income or revenue. The amended 1994 PSIC, based on the International Standard Industrial Classification (ISIC) Rev3.1 was used to classify economic units according to their economic activities.

The size of an establishment is determined by its total employment (TE). Listed below are the employment size classifications and the corresponding codes used in the 2009 ASPBI.

Establishments are also classified by geographic area using the Philippine Standard Geographic Classification (PSGC). The PSGC is a systematic classification and coding of geographic areas of the Philippines. It contains the latest updates on the official composition of regions, provinces, cities, municipalities and barangays in the Philippines. The 2009 ASPBI adopted the PSGC as of December 31, 2009.

The 2009 ASPBI Questionnaires

The 2009 ASPBI utilized five types of questionnaires. These questionnaires were designed after taking into consideration the requirements of the main users. The questionnaires are listed below:

Establishments were asked to provide the following information:



Frame of Establishments

The 2009 ASPBI sampling frame was extracted from the 2009 List of Establishments (LE).

There were about 781,000 establishments in operation in the country in 2009. Distribution of these establishments reveals that about 609,000 establishments are classified as the informal sector and the remaining 172,000 establishments are classified as the "formal" sector. However, around 90% (154,000) of establishments classified in the "formal" sector are within the coverage of the 2009 ASPBI and thus, comprise the frame of the survey.

Sampling Design

The 2009 ASPBI used stratified systematic sampling with five-digit PSIC serving as first stratification variable and TE as the second stratification variable.

Geographic Domain. For establishments with TE of 20 and over, the geographic domain were the regions. For establishments with TE of less than 20, the whole country served as the geographic domain.

Industry Domain. The industry domain comprised 1,036 sub-classes (5-digit PSIC), regardless of employment size.

Employment Stratum. Some employment sizes were combined to comprise an employment stratum and were limited to only five strata for all sectors. The basic consideration for grouping was the concentration of establishments in the employment sizes.

Within the industry domains for each sector, the establishments were grouped according to the following employment stratum:

Sample size. For establishments with employment of less than 20, the sample size was obtained by applying the specific sampling rates for each employment stratum of the industry domain at the national level. The total sample size for establishments with employment of less than 20 was 11,466 establishments. For the Mining and Quarrying sector, the estimated total sample size for TE of less than 20 was 100.

For establishments with employment of 20 and over, the sample size was obtained by applying the specific sampling rates for the i^th employment stratum in the j^th industry stratum at the national level and allocating to the regions. The aggregate sample size for employment of 20 and over in all sectors was 17,242 establishments. For the Mining and Quarrying sector, the estimated sample size for TE of 20 and over was 71.

Response Rate

A total of 161 out of 171 or 94.2 percent sample establishments responded in the Mining and Quarrying sector. These include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Concepts and Definitions of Terms

Book value is the initial value or acquisition cost of tangible fixed assets less accumulated depreciation.

Capital expenditures for tangible 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.

Change in inventories is equivalent to the total value of inventories at the end of the year less the value of inventories at the beginning of the year.

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.

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.

Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.

Intermediate cost refers to expenses incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity purchased, and mining/quarrying and industrial services done by others plus beginning inventory of materials, supplies and fuels less ending inventory of materials, supplies and fuels.

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.

Revenue includes cash received and receivables for goods/products and by-products sold and services rendered. Valuation is at producer prices (ex-establishment), net of discounts, and allowances, including duties and taxes but excluding subsidies.

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.

Social contributions paid by employers refer to payments made by the establishment on behalf of the employees. Examples are SSS, GSIS, Employees Compensation Commission (ECC), Philhealth and PAG-IBIG.

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 employment is the number of persons who worked in for the establishment as of November 15, 2009.

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.

Unpaid workers are persons working for at least one third of the working time normal to the establishment and do not receive regular pay.

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.

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 cost plus non-industrial services done by others (except rent expense for land) and other costs.

Value of output represents the sum of the the receipts from products and by-products sold, mining/quarrying 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.

Source:  National Statistics Office
              Manila, Philippines