Number of establishments up by 46.8 percent
The preliminary results of the 2012 Census of Philippine Business and Industry (CPBI) showed that there were 113 establishments with total employment (TE) of 20 and over engaged in mining and quarrying activities. This data was higher by 46.8 percent from 77 establishments reported in 2010. The positive growth was mainly brought by the 46 newly listed establishments in the 2012 List of Establishments.
Combined figures of the top two industries accounted for 69.0 percent of the total number of establishments, mining of non-ferrous metal ores except precious metals with 41 (36.3%) and quarrying of stone, sand and clay with 37 (32.7%) establishments.
The remaining 31.0 percent (35 establishments) of the total, as shown below, were engaged in other mining and quarrying activities.
- Mining and quarrying, n.e.c., 10 establishments (8.8%)
- Mining of hard coal, 7 establishments (6.2%)
- Mining of iron ores, 6 establishments (5.3%)
- Support activities for other mining and quarrying, 6 establishments (5.3%)
- Extraction of natural gas, 3 establishments (2.7%)
- Support activities for petroleum and gas extraction, 3 establishments (2.7%)
Figure 1 displays the percentage distribution of mining and quarrying establishments with TE of 20 and over by industry group in 2012.
Across the country, Central Visayas recorded the highest number of mining and quarrying establishments with 17 or 15.0 percent of the total. Caraga followed next with 16 establishments (14.2%). Meanwhile, no mining and quarrying establishment having TE of 20 and over was located in Autonomous Region in Muslim Mindanao (ARMM) in 2012.
Figure 2 shows the top five regions where most of the number of mining and quarrying establishments with TE of 20 and over were located in 2012.
Average number of workers is 270
Total employment of mining and quarrying establishments with TE of 20 and over reached 30,516 workers in 2012, an increase of 14.9 percent from 26,570 workers recorded in 2010.
About three-fourths of the total employment or 22,774 workers were employed by mining of non-ferrous metal ores except precious metals establishments, followed far behind by mining of hard coal with 3,712 workers or 12.2 percent share. Figure 3 shows the distribution of employment for mining and quarrying establishments with TE of 20 and over by industry group in 2012.
The average number of workers per establishment for the sector was recorded at 270. Among industries, mining of non-ferrous metal ores except precious metals generated the highest average number of workers per establishment with 555 employees. This was followed closely by mining of hard coal with 530 workers. Mining and quarrying, n.e.c. employed the lowest average number of workers per establishment at 33.
By region, establishments located in Cordillera Administrative Region (CAR) registered the highest average number of workers per establishment with 1,020 employees, followed by establishments in Western Visayas with 728 workers. Establishments in Caraga and Zamboanga Peninsula came next with respective number of 462 and 334 workers.
Extraction of natural gas industry pays the highest compensation
Total compensation paid by the sector to its employees in 2012 amounted to PHP8.3 billion, reflecting 17.8 percent increase from PHP7.0 billion two years ago. The computed average annual compensation of PHP271,929 per employee in 2012 was slightly higher by 2.7 percent than the previous level of PHP264,794 in 2010.
Industrywise, extraction of natural gas paid the highest annual average compensation of PHP1.9 million. Followed by other industries below:
- Support activities for petroleum and gas extraction PHP693,467
- Support activities for other mining and quarrying, PHP415,713
- Mining of hard coal, PHP256,277
- Mining of non-ferrous metal ores except precious metals, PHP248,309
Figure 4 presents the average annual compensation of employees for mining and quarrying establishments by industry group in 2012.
Value of output grows 67.4 percent
In 2012, value of output generated by mining and quarrying establishments was estimated at PHP167.0 billion, increasing by 67.4 percent compared with PHP99.8 billion produced in 2010.
Mining of non-ferrous metal ores except precious metals produced almost half (44.8%) or PHP74.9 billion of the total value of output. This was followed by extraction of natural gas with output share of 40.0 percent (PHP66.8 billion).
Figure 5 shows the percentage distribution of value of output for mining and quarrying establishments by industry group in 2012.
Among regions, mining and quarrying establishments located in MIMAROPA generated PHP63.4 billion or 38.0 percent of the total value of output. Establishments in Caraga and Central Visayas followed next with respective output share of 13.6 percent (PHP22.7 billion) and 11.7 percent (PHP19.6 billion).
Total expense reaches PHP92.9 billion
Total expense incurred in 2012 by mining and quarrying establishments with TE of 20 and over summed up to PHP92.9 billion.
Mining of non-ferrous metal ores except precious metals incurred the highest expense of PHP51.7 billion or 55.6 percent of the total. Extraction of natural gas ranked second with PHP18.7 billion (20.1%). Mining of hard coal came in third with a total expense of PHP17.3 billion (18.6%).
By region, establishments in MIMAROPA spent the highest at PHP17.9 billion or 19.3 percent of the total expense. This was followed by establishments in Western Visayas and Caraga spending PHP16.0 billion (17.2%) and PHP 12.1 billion (13.0%), respectively.
Extraction of natural gas records the highest returns
Income per expense ratio for establishments with TE of 20 and over stood at 1.75. This means that for every peso spent, corresponding income of PHP1.75 was generated.
Among industries, extraction of natural gas recorded the highest income per expense ratio of 3.41. Other industries with more than 1.0 income-expense ratio were as follows:
- Mining of non-ferrous metal ores except precious metals (1.38 income per peso expense)
- Support activities for other mining and quarrying (1.24 income per peso expense)
- Mining of hard coal (1.23 income per peso expense)
- Quarrying of stone, sand and clay (1.19 income per peso expense)
- Support activities for petroleum and gas extraction (1.06 income per peso expense)
By region, establishments in MIMAROPA registered the highest return at 3.40 income per peso expense. Establishments in Caraga and National Capital Region (NCR) followed next with respective income per peso expense of 1.91 and 1.83.
Value added posts 92.2 percent growth
Value added generated by mining and quarrying establishments with TE of 20 and over went up by 92.2 percent to PHP104.4 billion in 2012 from PHP54.3 billion in 2010.
Among industries, extraction of natural gas generated more than half (54.8%) or PHP57.2 billion of the total value added. Mining of non-ferrous metal ores except precious metals placed second with PHP39.9 billion or 38.2 percent share. Mining of hard coal came next with PHP5.5 billion (5.2%). The shares of other industries to the total value added were less than 1.0 percent each.
At the regional level, mining and quarrying establishments located in MIMAROPA contributed the biggest value added, estimated at PHP54.7 billion (52.4%), followed by Caraga with PHP14.1 billion (13.5%) and Central Visayas with PHP11.9 billion (11.4%). Establishments in CAR and NCR came next with PHP6.1 billion (5.9%) and 5.5 billion (5.2%), respectively.
Workers in extraction of natural gas are the most productive
Ratio of value added to employment, a measure of labor productivity, was recorded at PHP3.4 million per worker in 2012. This indicates an improvement in productivity by 67.4 percent from PHP2.0 million in 2010.
Establishments engaged in extraction of natural gas were the most productive in 2012, generating PHP129.2 million per worker. This was followed by mining of non-ferrous metal ores except precious metals (PHP1.8 million), mining of hard coal (PHP1.5 million), and support activities for petroleum and gas extraction (PHP1.1 million) which generated almost the same productivity of more than one million pesos per worker.
Figure 6 shows the labor productivity for mining and quarrying establishments with TE of 20 and over by industry group in 2012.
Gross addition to tangible fixed assets reaches PHP22.8 billion
Gross addition to tangible fixed assets acquired in 2012, defined as capital expenditures less sale of fixed assets, reached PHP22.8 billion, lower by of 3.8 percent from PHP23.7 billion recorded in 2010.
By industry, mining of non-ferrous metal ores except precious metals acquired more than half (61.4%) or PHP14.0 billion of the total value of gross addition to tangible fixed assets, followed by extraction of natural gas with PHP7.3 billion (31.9%).
MIMAROPA accounted for the biggest total value in gross additions to fixed asset at PHP8.0 billion or 35.2 percent of the total. Central Visayas followed with PHP6.3 billion (27.8%). Other contributors and their corresponding shares were as follows:
- CAR, PHP2.2 billion (9.8%)
- Caraga, PHP1.9 billion (8.5%)
- Davao Region, PHP1.8 billion (7.8%)
Total subsidies received amounts to PHP369.4 million
Subsidies granted in 2012 by the government to mining and quarrying establishments with TE of 20 and over amounted to PHP369.4 million, higher by 59.3 percent from PHP231.8 million in 2010.
Only two mining and quarrying industries were the recipient of subsidies in 2012. They were mining of non-ferrous metal ores except precious metals receiving PHP367.9 million (99.6%) and quarrying of stone, sand and clay with PHP1.4 million (0.4%).
Total assets is PHP233.3 billion
Total assets in 2012 for mining and quarrying establishments with TE of 20 and over was valued at PHP233.3 billion.
Among industries, mining of non-ferrous metal ores except precious metals owned more than half (50.6%) or PHP118.0 billion of the total assets.
At the regional level, establishments in MIMAROPA owned almost one-third (32.8%) or PHP76.6 billion of the total assets, followed by establishments in CAR with 15.1 percent share or PHP35.3 billion. Other top contributors in terms of ownership of total assets were as follows:
- Central Visayas, PHP30.7 billion (13.2%)
- Western Visayas, PHP23.6 billion (10.1%)
- Caraga, PHP21.7 billion (9.3%)
This Special Release presents the preliminary results of the 2012 Census of Philippine Business and Industry (CPBI) for the Mining and Quarrying Sector for establishments with total employment of 20 and over.
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 group or 3-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 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 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:
- Corporations and partnership
- Cooperatives and foundations
- Single proprietorship with employment of 10 and over
- Single proprietorships with branches
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.
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 83.33 percent (205 out of 246 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 2012, were not imputed.
Limitation of Data
The 2012 CPBI covered only the formal sector of the economy.
Data for Eastern Visayas and SOCCSKSARGEN regions were suppressed to ensure confidentiality of individual establishment’s data.
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, 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.