Previous Release

2002 Annual Survey of Philippine Business and Industry (ASPBI) - Mining and Quarrying Sector : Final Results

Reference Number: 2005-143
Release Date: 07 February 2005

 

Non-metallic Mining Industry Accounts for the Biggest Number of Establishments

  1. The 2002 Annual Survey of Philippine Business and Industry (ASPBI) covered a total of 317 mining and quarrying establishments all over the country. Of the total establishments, 255 or 80.4 percent were mining and quarrying establishments with average total employment (ATE) of less than 20 workers and the remaining 19.6 percent (62 establishments) accounted for establishments with ATE of 20 and more workers.

  2. The biggest number of establishments was recorded for the non-metallic mining and quarrying industry, which is composed of establishments engaged in coal mining, extraction and production of crude petroleum and natural gas and other non-metallic mining and quarrying. This industry accounted for 146 establishments or 46.1 percent of the total. Stone quarrying, clay and sand pits industry ranked second with 133 establishments (41.9 percent). The least number of establishments was recorded for the metallic ore mining industry with 38 establishments or 12.0 percent of the total. Figure 1 displays the distribution of establishments by industry for the mining and quarrying sector.

    Metallic Ore Mining Industry Provides the Largest Employment

  3. Total employment generated in 2001 by all mining and quarrying establishments stood at 13,571 workers with the metallic ore mining industry employing the biggest number of workers reaching 8,139, which was equivalent to 60 percent of total employment for the sector.

  4. In terms of employment generation, the non-metallic mining and quarrying industry, and stone quarrying, clay and sand pits industry ranked second and third, respectively. Employment in non-metallic mining and quarrying industry was recorded at 3,406 workers (25.1 percent) and 2,027 workers (14.9 percent) for the stone quarrying, clay and sandpits industry. Figure 2 shows the distribution of employment by industry for the mining and quarrying sector.

    Average Monthly Compensation of a Mine Worker is P 12,442

  5. Total compensation paid in 2001 amounted to P1.95 billion or an average monthly compensation of P12,442 per mine worker.

  6. Among industries, non-metallic mining and quarrying industry paid the highest average monthly compensation worth P18,201 per mine worker. Figure 3 shows the average monthly compensation of workers by industry for the mining and quarrying sector.

    Ratio of Revenue to Operating Cost Stands at 1.42 for the Metallic Ore Mining Industry

  7. Total revenue earned in 2001 by all mining and quarrying establishments in the country was estimated at P13.92 billion.

  8. On the other hand, the total operating cost, which is the sum total of compensation (P1.95 billion) and cost (P12.48), amounted to P14.43 billion for the sector.

  9. The revenue to operating cost for the sector gave a ratio of 0.96. It states that, on the average, for every peso spent to defray the cost of operation, 96 centavos were earned by a mining and quarrying establishment in 2001. The low value of the ratio of revenue to operating cost for the sector was attributed to the relatively big cost of operation incurred by establishments engaged in the extraction and production of crude petroleum and natural gas during exploratory stage.

  10. However, for the metallic ore mining industry the ratio of revenue to operating cost was recorded at 1.42 while it was 1.16 for stone quarrying, clay and sand pits industry.

    Value of Output Amounts to P14.04 Billion

  11. Total value of output generated by the sector in 2001 was estimated at P14.04 billion. Establishments with ATE of 20 and more workers accounted for the lion?s share or 98.2 percent of total value of output worth P13.79 billion.

  12. Among industries, metallic ore mining accounted for the biggest (81.8 percent) of the total value of output as it grossed P11.48 billion in 2001. Figure 4 shows the distribution of value of output by industry for the mining and quarrying sector.

    Labor Productivity is P 424,575 per Mine Worker

  13. Labor productivity, for the sector measured as the ratio of census value added per paid employee was valued at P424,575.

  14. Metallic ore mining industry recorded the highest labor productivity reaching P858,451. Figure 5 displays the labor productivity by industry for the mining and quarrying sector.

    Capacity Utilization is at the 60-69 Percent Level

  15. Capacity utilization, the ratio of total output to the maximum rated capacity of the establishment, was placed at 60-69 percent level for about 29.2 percent of the total responding establishments.

  16. Only 3.4 percent of these establishments was operating on full capacity level of 90-100 percent. Figure 6 displays the distribution of responding mining and quarrying establishments by level of capacity utilization.

     


    TECHNICAL NOTES

    Scope and Coverage

    The 2002 Annual Survey of Philippine Business and Industry (ASPBI) aimed to collect information on the levels, structure and trends of industries in the entire country. It has the calendar year, 2001, for its reference period. One of the fourteen (14) sectors covered in the survey is the mining and quarrying sector.

    All mining and quarrying establishments with average total employment (ATE) of 20 and more workers were covered on a 100 percent basis and those with ATE of less than 20 workers were selected using stratified systematic random sampling.

    Response Rate

    The response rate is 84.5 percent of the 110 sample 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 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  A mining camp engaged in exploration, extraction, dressing and beneficiating of minerals such as coal, ores, crude petroleum and natural gas.

    Quarrying Establishments  A 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 establishment's 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 includes all persons who worked in or for the establishment as of November 30, 2001.

    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, 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 employee?s 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.

    Number of hours actually worked by production workers refers to the number of hours actually spent by production workers at work, including waiting time and overtime. It excludes time paid for but not spent in work for the establishment such as sick leave and paid vacation leave.

    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.

    Value of output represents the total value of products sold, receipts from contract work and industrial services done for others, receipts from goods sold in the same condition as purchased, fixed assets produced on own account and change in inventories (ending less beginning) of finished goods, work-in-process and goods for resale.

    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 , machinery and equipment, furniture, fixtures, and other fixed 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.

    Fixed assets produced on own account refer to the physical assets produced by the establishment for its own use. It is valued at the cost of all work put in place, including overhead.

    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 addition 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 purchaser's (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 producer's price.

    Work-in-process 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 producer's 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
                     Manila, Philippines

     

Mining and Quarrying by Year

Contact Us

Technical Inquiries:

Industry Statistics Division
Economic Sector Statistics Service
   +632 8376 2060