Sand and gravel quarrying leads the sector in terms of number of establishments
The final results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI) showed that there were 253 establishments engaged in mining and quarrying activities in the formal sector of the economy. Almost two-thirds (62.1% or 157 establishments) of the total count were establishments with total employment of 20 and over while the remaining 37.9 percent (96 establishments) were establishments with total employment of less than 20.
Among industry sub-classes, sand and gravel quarrying recorded the highest number of establishments with 59 or 23.3 percent of the total. Gold ore mining placed second with 34 establishments or 13.4 percent. Nickel ore mining and stone quarrying, clay and sand pits, n.e.c. came next as both recorded 25 establishments (9.9%). Other leading industries with more than five percent share in terms of number of establishments are as follows:
- Limestone quarrying, 18 establishments (7.1%)
- Extraction of salts, 15 establishments (5.9%)
- Support activities for other mining and quarrying, 15 establishments (5.9%)
Figure 1 displays the percentage distribution of all mining and quarrying establishments by industry sub-class in 2013.
Copper ore mining employs on the average 806 workers per establishment
Total employment of all mining and quarrying establishments reached 35,940 workers in 2013. Of the total workforce, 35,869 or 99.8 percent were paid employees while the remaining 0.2 percent were working owners and unpaid workers.
Combined value of the top three industries in terms of employment generation comprised 72.3 percent of the total. Nickel ore mining employed 10,412 workers or 29.0 percent of the total employment, followed closely by copper ore mining with 8,868 workers or 24.7 percent share. Gold ore mining occupied the third spot with 6,718 workers or 18.7 percent of the total. Figure 2 shows the distribution of employment for all mining and quarrying establishments by industry sub-class in 2013.
The average number of workers per establishment for the sector was recorded at 142. Among industries, copper ore mining generated the highest average number of workers per establishment with 806 employees, about five times more than the sector’s average. This was followed by nickel ore mining and mining of hard coal with respective average number of 416 and 317 workers. Other industries with average number of workers of more than 100 are as follows:
- Gold ore mining, 198 workers
- Extraction of natural gas, 127 workers
- Support activities for other mining and quarrying, 111 workers
Employees from extraction of natural gas industry earn the highest average annual compensation
Total compensation paid by the sector to its employees amounted to PHP11.0 billion, accounting for 9.4 percent of the total expense in 2013.
With respect to industry groupings, copper ore mining paid the highest compensation of PHP3.2 billion, comprising 29.1 percent of the total. Nickel ore mining ranked second with PHP3.0 billion (26.9%), followed by gold ore mining with PHP1.2 billion (11.3%).
Employees in mining and quarrying establishments earned an average annual compensation of PHP306,122. At the industry level, employees in extraction of natural gas received the highest average annual compensation of PHP2.0 million. This was followed by employees in extraction of crude petroleum and oil and gas extraction activities on a fee or contract basis with PHP1.4 million and PHP948,779, respectively. Figure 3 presents the average annual compensation of employees for all mining and quarrying establishments by industry sub-class in 2013.
Extraction of natural gas generates the highest value of output
In 2013, value of output generated by all mining and quarrying establishments was estimated at PHP190.5 billion.
Value of output generated by the top three industries comprised more than three-fourths (76.7%) of the total. Extraction of natural gas led all industries, producing PHP66.1 billion or 34.7 percent of the total value of output. Copper ore mining and nickel ore mining came in second and third spots with respective output value PHP41.3 billion (21.7 %) and PHP38.8 billion (20.4%). Other industries with value of output of more than one billion pesos are as follows:
- Mining of hard coal, PHP17.2 billion
- Gold ore mining, PHP15.2 billion
- Support activities for other mining and quarrying, PHP4.0 billion
- Oil and gas extraction activities on a fee or contract basis, PHP2.0 billion
- Sand and gravel quarrying, PHP1.5 billion
- Stone quarrying, clay and sand pits, n.e.c., PHP1.4 billion
- Limestone quarrying, PHP1.3 billion
Figure 4 shows the percentage distribution of value of output for all mining and quarrying establishments by industry sub-class in 2013.
Total expense reaches PHP116.4 billion
Total expense incurred by all mining and quarrying establishments in 2013 was estimated at PHP116.4 billion.
Nickel ore mining spent the highest among industries with PHP30.9 billion or 26.6 percent of the total expense. This was followed closely by copper ore mining with PHP28.8 billion or 24.7 percent share. Extraction of natural gas ranked third with PHP18.5 billion (15.9%), and mining of hard coal came next with PHP15.1 billion (13.0%).
Extraction of natural gas records the highest returns
Income per expense ratio stood at 1.54. This means that for every peso spent, corresponding income of PHP1.54 was generated.
Among industries, extraction of natural gas recorded the highest income per expense ratio with 3.17. Extraction of crude petroleum and mining of hard coal placed second and third with respective ratios of 1.68 and 1.35. On the other hand, industries with ratio below 1.00 are as follows:
- Silica sand and silica stone quarrying, 0.99
- Other mining and quarrying, n.e.c., 0.93
- Mining of iron ores, 0.92
- Chromite mining, 0.88
Value added stands at PHP114.2 billion
Value added generated in 2013 by all mining and quarrying establishments was estimated at PHP114.2 billion.
By industry, extraction of natural gas generated half (50.2%) or PHP57.4 billion of the total value added. Copper ore mining came next with PHP21.6 billion (18.9%), followed by nickel ore mining with PHP15.7 billion (13.8%). Other industries which registered at least 1.0 percent share to the total value added are the following:
- Gold ore mining, PHP8.0 billion (7.0%)
- Mining of hard coal, PHP6.9 billion (6.1%)
- Support activities for other mining and quarrying, PHP2.0 billion (1.8%)
Extraction of natural gas generates highest labor productivity
Ratio of value added to employment, a simple measure of labor productivity, was recorded at PHP3.2 million per worker in 2013.
Establishments engaged in extraction of natural gas were the most productive in 2013, generating PHP112.7 million per worker. This was followed by copper ore mining (PHP2.4 million), oil and gas extraction activities on a fee or contract basis (PHP2.2 million), and mining of hard coal (PHP2.2 million), generating almost the same productivity of about two million pesos per worker. Figure 5 shows the labor productivity for all mining and quarrying establishments by industry sub-class in 2013.
Extraction of natural gas contributes the biggest share in gross addition to tangible fixed assets
Gross addition to tangible fixed assets acquired in 2013, defined as capital expenditures less sale of fixed assets, was valued at PHP47.0 billion.
At the industry level, extraction of natural gas acquired PHP18.0 billion or more than one-third (38.4%) of the total value of gross addition to tangible fixed assets. This was followed by copper ore mining with PHP12.8 billion (27.2%). Other leading contributors and their corresponding shares are as follows:
- Gold ore mining, PHP8.2 billion (17.4%)
- Nickel ore mining, PHP4.2 billion (8.8%)
- Support activities for other mining and quarrying, PHP1.6 billion (3.4%)
Total subsidies received amounts to PHP8.9 million
Subsidies granted by the government to support the business operation of mining and quarrying sector amounted to PHP8.9 million. Establishments engaged in copper ore mining were the only recipient of subsidies in 2013.
This Special Release presents the final results of the 2013 ASPBI for all mining and quarrying establishments.
The 2013 ASPBI is the 42nd of the series of annual surveys of establishments conducted since 1956 Survey of Manufactures and its forerunner is the 2010 ASPBI. It is one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey provide information on the levels, structure, performance, and trends of economic activities of the formal sector in the entire country for the year 2013.
The survey was conducted nationwide in September 2014 with the year 2013 as the reference period of data, except for employment which is as of November 15, 2013.
Beginning with the 2013 ASPBI, the data processing was done on a decentralized set-up particularly by the Provincial Offices (POs). The set-up is line with the PSA’s strategic direction to decentralize the data processing of surveys to the field offices. A new strategy in data processing was implemented through the use of an online system called the Establishment Data Management System (EDMS).
Data are presented at the national, regional and industry sub-class or 5-digit 2009 Philippine Standard Industrial Classification (PSIC).
The conduct of the 2013 ASPBI is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013 - Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.
Scope and Coverage
The 2013 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 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 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
Thus, the 2013 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 PSIC.
Frame of Establishments
The frame for the 2013 ASPBI was extracted from the 2013 List of Establishments (LE). The estimated number of establishments in operation in the country in 2013 totaled to 941,000. About 263,000 establishments (28.0% of the total establishments) belong to the formal sector of which 239,000 (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 2013 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.
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 for the certainty employment stratum 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 89.8 percent (351 out of 391 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 2013, were not imputed.
Limitation of Data
The 2013 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, 2013.
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.