Other Non-Metallic Mining and Quarrying Comprises the Biggest Number
- The year 2005 is an important period for the sector as the Mining Act of 1995 was passed into law when the Supreme Court upholded its constitutionality. This law opens the Philippine mining industry to foreign investments and ensures corporate social responsibility on the part of the mining companies for environmental protection and sustainable development of the countrys resources.
- The total number of mining and quarrying establishments in operation was estimated at 242 according to the 2005 Annual Survey of Philippine Business and Industry (ASPBI). Of the total, majority or 86.0 percent (208 establishments) had an average employment of less than 20 and the remaining 14.0 percent (34 establishments) had an average employment of 20 and more.
- By industry group, the biggest number of establishments was recorded for other non-metallic mining and quarrying which accounted for 47.5 percent (115 establishments) of the total. This industry group comprised mostly of establishments engaged in the extraction of salt. Stone quarrying, clay and sandpits industry ranked second with 94 establishments (38.8%). Figure 1 shows the distribution of establishments by industry group for the mining and quarrying sector.
Copper and Chromite Mining Employs the Highest Number of Workers
- Total employment generated in 2005 by all mining and quarrying establishments reached 11,445.
- By industry, copper and chromite ore mining employed the highest number of workers reaching 3,323 workers accounting for 29.0 percent of total employment. Gold ore mining ranked second with 3,192 workers (27.9%). Figure 2 is a graphical presentation of the distribution of employment by industry group for the mining and quarrying sector.
Average Annual Compensation Per Worker is P196.6 Thousand
- Total compensation paid amounted to P2.2 billion, translating to an average annual compensation of P196,611 per paid employee in 2005.
- Among industries, establishments engaged in the extraction and production of crude petroleum, natural gas and coal reported the highest compensation paid to each worker with annual average pay of P992,392. Copper and chromite ore mining industry ranked second with annual average pay of P231,585. Figure 3 presents the average compensation by industry group for the mining and quarrying sector.
Extraction and Production of Crude Petroleum, Natural Gas and Coal Generates the Biggest Output Value at P45.8 Billion
- Total revenue earned in 2005 by all mining and quarrying establishments amounted to P61.3 billion. Establishments with ATE of 20 and more workers accounted for a lionÃƒÂ¯Ã‚Â¿Ã‚Â½s share of 98.9 percent to total revenue amounting to P60.6 billion.
- Total value of output generated by all mining and quarrying establishments was estimated at P58.7 billion. By industry group, establishments engaged in the extraction and production of crude petroleum, natural gas and coal accounted for the largest share of the total value of output as it grossed P45.6 billion (77.6%). Figure 4 displays the distribution of the value of output by industry group for the mining and quarrying sector.
- Total cost, excluding compensation, incurred by all mining and quarrying establishments in 2005 amounted to P26.2 billion, translating to a revenue cost ratio of 2.3.
Extraction and Production of Crude Petroleum, Natural Gas and Coal Generates Also the Highest Labor Productivity
- Labor productivity, measured as the ratio of value added to total employment, was estimated at P4.1 million. Extraction and production of crude petroleum, natural gas and coal generated the highest labor productivity reaching P84.3 million. Figure 5 displays the labor productivity by industry group for the mining and quarrying sector.
The 2005 Annual Survey of Philippine Business and Industry (ASPBI) is a continuing activity of the National Statistics Office aimed at collecting information on the structure and levels of economic activities in the country. It is the 38th in the series of annual survey of establishments conducted by the Office and the 24th in the series for the mining and quarrying sector.
The survey is undertaken by authority of five (5) legislative acts and presidential directives namely: Commonwealth Act No. 591, Presidential Decree No. 418, Executive Order No. 121, Executive Order No. 352, and Executive Order No. 5.
The reference year of the survey is 2005.
Scope and Coverage
The unit of enumeration of the survey is the establishment. It is defined as an economic unit under a single ownership or control, engaged in one or predominantly one kind of economic activity at a single fixed location. Establishments are classified according to economic sectors, which are the scope of the survey. Fourteen sectors of the Philippine economy are covered in the 2005 ASPBI.
One of these sectors is the mining and quarrying. The sector is comprised of eight (8) industry groups, namely:
- gold ore mining
- copper ore mining
- chromite ore mining
- other metallic ore mining
- coal mining
- extraction and production of crude petroleum and natural gas
- stone quarrying, clay and sand pits
- other non-metallic mining and quarrying.
Stratified systematic sampling was utilized to select samples for the 2005 ASPBI. The updated 2004 List of Establishments (LE) was the frame used to draw the sample establishments.
Employment size, defined as the average total employment (ATE) of an establishment, served as the stratification variable. The domains were region and industry for the group of establishments with ATE of 20 and more. For establishments with ATE of less than 20, the whole country and industry served as the domains.
The amended 1994 Philippine Standard Industrial Classification (PSIC) was used to classify establishments according to economic activity from which they derive their major income or revenue. On the other hand, geographic locations were classified according to the Philippine Standard Geographic Classification (PSGC).
Questionnaires were distributed to sample establishments starting in April 3 to April 28, 2006. The respondents were generally given 30 days within which to accomplish the questionnaires. Collection of accomplished questionnaires was programmed from May 2, 2006 until August 31, 2006. Manual and machine processing, and tabulation of data were undertaken in the Central Office.
The effective response rate is 76.4 percent for the mining and quarrying sector. For establishments with ATE of 20 and more workers, the effective response rate is 78.4 percent while that for establishments with ATE of less than 20 workers, it is 74.5 percent.
Concepts and Definition of terms
Establishment an economic unit under single ownership or control, i.e., under a single legal entity engaged in one or 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, 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 the production.
Mining Establishment mining camp engaged in the exploration, extraction, dressing and beneficiating of minerals such as coal, ores, crude petroleum and natural gas.
Quarrying Establishment 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 amended 1994 Philippine Standard Industrial Classification (PSIC). Generally, the main activity of the establishment is the establishments 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 the 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 the period November 15, 2005.
Paid Employees include 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.
Unpaid Workers include working owners who do not receive regular pay, apprentices and learners without regular pay and persons working for at least one-third of the working time normal to establishment and do not receive regular pay.
Salaries and Wages are payments in cash and in kind to all employees, prior to deductions of employees contribution to SSS/GSIS, withholding tax, etc. Included are total basic pay, overtime and other benefits.
Employer's Contribution to SSS/GSIS and the like refers to payments made by the establishment for social security in behalf of the employees. Examples are SSS, GSIS, PhilHealth and PAGIBIG.
Revenue refers to cash received and receivables for goods sold and services rendered. Valuation is in producers price (ex-establishment), net of discounts and allowances, including duties and taxes, and excluding subsidies.
Cost refers to all expenses incurred during the year whether paid or payable. Valuation is at market price including taxes and other charges, net of rebates, returns and allowances. Included are goods and services received by the establishment from other establishments of the same enterprise and 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 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 process and to protect it against competition. Included are tax credit, tax and duty exemptions, price support and price discount, and interest rate subsidy.
Fixed Assets are physical assets expected to have a 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, computers and peripherals, telecommunications equipment and apparatus, other machinery and equipment including furniture and fixtures, and cultivated assets.
Value of Output is a derived measure of output that 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 inventory of finished goods, work-in-progress and goods for resale.
Gross Additions 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 fixed date, regardless of where the stocks are located. Valuation is at current replacement cost in purchasers prices. Replacement cost is the cost of an item in terms of its present price rather than its original cost.
Finished Products Inventory refers to the goods made by the establishment which are ready for sale/shipment as of reference date. Valuation is at producers price.
Work-in-Process Inventory refers to the value of all goods 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 producers price.
Change in Inventories is the total value of ending inventory less the total beginning inventory.
Census Value Added represents the difference between the value of output and the total costs of materials and supplies consumed, fuels 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 for others and other costs.
Detailed Statistical Tables
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