Quarrying of stone, sand and clay industry leads the sector
The preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) showed that there were 134 establishments with total employment (TE) of 20 and over in the formal sector engaged in mining and quarrying activities.
Among industry groups, quarrying of stone, sand and clay recorded highest in terms of number of establishments with 60 or 44.8 percent share of the total. This was followed by mining of non-ferrous metals ores except precious metals with 42 establishment or 31.3 percent share. Mining and quarrying, n.e.c ranked third with nine establishments or 6.7 percent of the total.
Figure 1 displays the percentage distribution of mining and quarrying establishments with TE of 20 and over by industry group in 2015.
By region, CALABARZON, Central Visayas and Caraga registered the highest number of mining and quarrying establishments, each with 18 establishments or a combined share of 40.3 percent of the total. Central Luzon came in next with 16 establishments (11.9%), followed by MIMAROPA with 13 establishments (9.7%). Meanwhile, no mining and quarrying establishment with TE of 20 and over was recorded in Autonomous Region in Muslim Mindanao (ARMM) in 2015. (Figure 2)
Mining of non-ferrous metal ores industry employs 543 workers per establishment
Total employment of mining and quarrying establishments with TE of 20 and over reached 31,351 workers in 2015. Of the total workforce, 31,242 workers or 99.7 percent were paid employees while the remaining 0.3 percent were working owners and unpaid workers.
Industrywise mining of non-ferrous metal ores except precious metals employed the highest number of workers with 22,790 or 72.7 percent of total. This was followed by mining of hard coal and quarrying of stone, sand and clay with 2,905 workers or 9.3 percent share each of the total.
Figure 3 shows the distribution of employment for mining and quarrying establishments with TE of 20 and over by industry group in 2015.
At the regional level, Central Visayas employed the highest with 5,968 workers (19.0%) followed by CARAGA with 5,859 workers (18.7%). Davao Region and Cordillera Administrative Region (CAR) came in next with respective number of 4,756 (15.2%) and 4,285 (13.7%) workers.
The average number of workers per establishment for the sector was recorded at 234. Among industries, mining of non-ferrous metal ores except precious metal generated the highest average number of workers per establishment at 543 employees. This was followed by mining of hard coal with 415 workers.
Other industries with average number of workers of more than 100 are as follows:
- Support activities for other mining and quarrying, 183 workers
- Extraction of natural gas, 149 workers
- All other industries, 101 workers
Extraction of natural gas industry pays the highest average annual compensation
Total compensation paid by the sector to its employees in 2015 amounted to PHP11.1 billion, translated to an average annual compensation of PHP355,905 per employee.
Industrywise, mining of non-ferrous metal ores except precious metals paid the highest total compensation of PHP6.5 billion, which comprised 58.2 percent of the total. This was followed by extraction of natural gas with PHP1.8 billion (16.3%) and mining of hard coal with PHP912.0 million (8.2%).
Extraction of natural gas earned an average annual compensation of PHP4.1 million, eleven times more than the sector’s average. This was followed by support activities for other mining and quarrying and mining of hard coal with average annual compensation of PHP394.3 thousand and PHP314.0 thousand, respectively.
Figure 4 presents the average annual compensation of employees for mining and quarrying establishments by industry group in 2015.
Mining of non-ferrous metal ores industry generates more than half of the total value of output
In 2015, value of output generated by mining and quarrying establishments was estimated at PHP147.2 billion.
Combined value of the top two industries in terms of value of output generated an amount equivalent to PHP111.6 billion or 75.8 percent. Mining of non-ferrous metal ores except precious metals accounted for 47.3 percent (PHP69.7 billion) and extraction of natural gas, 28.5 percent (PHP41.9 billion).
Figure 5 shows the percentage distribution of value of output for mining and quarrying establishments by industry group in 2015.
Among regions, MIMAROPA generated the highest value of output at PHP48.6 billion or 33.0 percent of the total. Caraga and Central Visayas followed next with respective output shares of PHP30.2 billion (20.5%) and PHP13.3 billion (9.0%).
Total expense for the sector reaches PHP112.9 billion
Total expense including compensation for mining and quarrying establishments with TE of 20 and over was estimated at PHP112.9 billion in 2015.
By industry group, mining of non-ferrous metal ores except precious metals accounted for 56.1 percent or PHP63.4 billion of the total expense incurred in 2015. Extraction of natural gas ranked second with PHP22.1 billion (19.6%). Mining of hard coal came in third with a total expense of PHP11.6 billion (10.2%).
Across regions, Caraga ranked first with 23.5 percent or PHP26.6 billion worth of total expense. MIMAROPA followed with PHP26.2 billion or 23.2 percent of the total.
Completing the top five regions with highest total expense in 2015 were as follows:
- Central Visayas, PHP14.7 billion (13.0%)
- CAR, PHP10.4 billion (9.2%)
- NCR, PHP9.2 billion (8.1%)
Extraction of natural gas industry records the highest returns
Income per expense ratio for the sector with TE of 20 and over stood at 1.40. This means that for every peso spent, corresponding income of PHP1.40 was generated.
Extraction of natural gas recorded an income per expense ratio of 1.93, the highest among industries. Mining of hard coal and support activities for other mining and quarrying occupied second and third spots with respective income per expense ratios of 1.58 and 1.47.
Extraction of natural gas industry generates the highest value added
Value added generated in 2015 by mining and quarrying establishments with TE of 20 and over summed up to PHP80.2 billion.
Among industries, extraction of natural gas ranked first with PHP31.9 billion worth of value added or 39.8 percent share of the total. Mining of non-ferrous metal ores except precious metals placed second with PHP29.1 billion or 36.3 percent share. Mining of hard coal came in next with PHP9.4 billion (11.7%). Support activities for other mining and quarrying with PHP5.7 billion (7.2%) and quarrying of stone, sand and clay with PHP1.2 billion (1.4%) completed the top five industries with highest value added in 2015 for the sector.
At the regional level, MIMAROPA contributed PHP33.7 billion 42.0 percent share to the total value added. Caraga accounted for 12.5 percent or PHP10.0 billion while NCR shared 9.2 percent or PHP7.4 billion worth in value added in 2015.
Workers in extraction of natural gas industry are the most productive
Ratio of value added to employment, a measure of labor productivity, was recorded at PHP2.6 million per worker in 2015.
Extraction of natural gas was the most productive industry in 2015, generating a PHP71.4 million worth of value added per worker. This was followed by support activities for other mining and quarrying with PHP5.3 million per worker, mining of hard coal with PHP3.2 million per worker, and mining and quarrying, n.e.c with PHP1.5 million per worker.
Figure 6 shows the labor productivity for mining and quarrying establishments with TE of 20 and over by industry group in 2015.
Mining of non-ferrous metal ores industry contributes the biggest share in gross addition to tangible fixed assets
Gross addition to tangible fixed assets acquired in 2015, defined as capital expenditures less sale of fixed assets, reached PHP21.8 billion.
By industry, mining of non-ferrous metal ores except precious metals acquired 42.4 percent or PHP9.2 billion of the total value of gross addition to tangible fixed assets. This was followed by extraction of natural gas with PHP8.5 billion (39.0%).
MIMAROPA accounted for the highest gross addition to fixed assets at PHP7.9 billion or 36.4 percent of the total. Cagayan Valley followed with PHP2.7 billion (12.4%). Other leading contributors and their corresponding shares are as follows:
- Caraga, PHP2.3 billion (10.7%)
- CAR, PHP2.1 billion (9.8%)
- NCR, PHP1.7 billion (8.0%)
Total subsidy received in 2015 amounts to PHP0.2 million
Subsidy granted by the government to mining and quarrying establishments with TE of 20 and in 2015 nearly amounted to PHP0.2 million.
Mining of non-ferrous metal ores except precious metals industry in Caraga were the sole recipient of government subsidy in 2015.
This Special Release presents the preliminary results of the 2015 ASPBI for the mining and quarrying establishments in the formal sector with total employment of 20 and over.
The 2015 ASPBI 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 2015. The 2015 Survey on Information and Communication Technology (SICT) was undertaken as a rider to this survey.
The survey was conducted nationwide in April 2016 with the year 2015 as the reference period of data, except for employment which is as of November 15, 2015.
Data are presented at the national and industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC) and at the regional level.
The conduct of the 2015 ASPBI is authorized under Republic Act No. 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 2015 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
Frame of Establishments
The frame for the 2015 ASPBI was extracted from the 2015 List of Establishments (LE). The estimated number of establishments in operation in the country in 2015 totaled to 909,786. About 259,836 establishments (29.0% of the total establishments) belong to the formal sector of which 223,821 (86.0%) 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 2015 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 80.7 percent (130 out of 161 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 and financial statement from Securities and Exchange Commission (SEC). However, reports of establishments which were found to be duplicates and out of business in 2015, were not imputed.
Limitation of Data
The 2015 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, 2015.
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.