PREVIOUS RELEASE

2010 Annual Survey of Philippine Business and Industry - Mining and Quarrying Sector for Establishments with Total Employment of 20 and Over : Preliminary Results

Release Date:
October 1, 2012

 

Mining of non-ferrous metal ores except precious metals dominates the sector

The 2010 Annual Survey of Philippine Business and Industry (ASPBI) conducted nationwide covered a total of 75 Mining and Quarrying establishments with total employment of 20 and over. Majority of these establishments were engaged in mining of non-ferrous metal ores except precious metals with 33 establishments or 44.0 percent of the total. This was followed by quarrying of stone, sand and clay with 25 establishments or 33.3 percent, and other mining and quarrying with 8 establishments or 10.7 percent of the total. Figure 1 displays the percentage distribution of Mining and Quarrying establishments by industry group in 2010.

 

 

Mining of non-ferrous metal ores except precious metals employs the most number of workers

Mining and Quarrying establishments employed a total of 26,520 workers in 2010. Mining of non-ferrous metal ores except precious metals employed the most number of workers with 19,928 representing 75.1 percent of the total. This was followed by quarrying of stone, sand and clay with 2,064 workers or 7.8 percent. Other mining and quarrying hired a total of 767 (2.9%) workers and extraction of crude petroleum with 452 (1.7%) workers. Figure 2 shows the percentage distribution of employment for Mining and Quarrying establishments by industry group in 2010.

 

 

The average number of workers per establishment in the Mining and Quarrying sector was recorded at 354. Mining of non-ferrous metal ores except precious metals had the highest number with 604 workers per establishment while quarrying of stone, sand and clay recorded the least with 83 workers (Table 1a).

 

Employees of Extraction of crude petroleum receive the highest compensation

Total compensation paid in 2010 by Mining and Quarrying establishments amounted to PHP7.0 billion, translating to an average annual compensation of PHP265,086 per employee.

Employees of extraction of crude petroleum received the highest annual average pay worth PHP1,476,442. Mining of non-ferrous metal ores except precious metals ranked a far second with average annual pay of PHP256,621. Quarrying of stone, sand and clay placed third with average annual compensation of PHP150,207 per employee. Figure 3 presents the average annual compensation of employees for Mining and Quarrying establishments by industry group in 2010.

 

 

Total value of output amounts to PHP99.7 billion

Value of output generated by Mining and Quarrying establishments was estimated at PHP99.7 billion in 2010.

By industry group, mining of non-ferrous metal ores except precious metals produced the biggest output value of PHP46.7 billion or 46.8 percent of the total. Extraction of crude petroleum ranked second with PHP27.5 billion (27.5%). Quarrying of stone, sand and clay distantly followed with PHP3.8 billion (3.8%). Figure 4 shows the percentage distribution of value of output for Mining and Quarrying establishments by industry group in 2010.

 

 

Total cost reaches PHP58.5 billion

Total cost incurred in 2010, except compensation, totalled to PHP58.5 billion. By industry groups, mining of non-ferrous metal ores except precious metals incurred the highest cost valued at PHP27.4 billion or 46.9 percent of the total. Extraction of crude petroleum followed with PHP10.8 billion or 18.5 percent, and quarrying of stone, sand and clay with PHP3.2 billion or 5.5 percent of the total cost (Table 1).

 

Extraction of crude petroleum records the highest returns

Revenue per cost ratio for Mining and Quarrying establishments was estimated at 1.78. This means that for every peso spent, corresponding revenue of PHP1.78 was generated.

Among industries, extraction of crude petroleum had the highest revenue-cost ratio of 2.61. Placed second was mining of non-ferrous metal ores except precious metals with a 1.78 ratio while other mining and quarrying establishments which recorded a ratio of 1.54 ranked third (Table 1a).

 

Value added amounts to PHP54.3 billion

Total value added generated in 2010 by Mining and Quarrying establishments was estimated at PHP54.3 billion.

Among industries, mining of non-ferrous metal ores except precious metals contributed the biggest share to total value added amounting to PHP25.2 billion or 46.4 percent. Extraction of crude petroleum, with 36.7 percent share in the total value added, was the second biggest contributor at PHP19.9 billion.  Quarrying of stone, sand and clay ranked third with PHP1.1 billion or 1.9 percent of the total (Table 1).

 

Workers in extraction of crude petroleum are the most productive

Labor productivity, measured as value added per worker, was estimated at PHP2.0 million in 2010. Workers in the extraction of crude petroleum were the most productive valued at PHP44.1 million per worker.

Other top industries in terms of labor productivity were as follows:

  • Mining of non-ferrous metal ores except precious metals with PHP1.3 million
  • Other mining and quarrying with PHP715.4 thousand
  • Stone, sand and clay with PHP510.4 thousand

Figure 5 shows the labor productivity for Mining and Quarrying establishments by industry group in 2010.

 

 

Gross addition to tangible fixed assets totals to PHP23.7 billion

Gross addition to tangible fixed assets, defined as capital expenditures less sale of fixed assets, acquired by Mining and Quarrying establishments in 2010 was estimated at PHP23.7 billion.

Among industries, mining of non-ferrous metal ores except precious metals acquired the biggest addition to its fixed assets amounting to PHP17.0 billion or 72.0 percent of the total. Extraction of crude petroleum ranked far second with addition to fixed assets worth PHP2.6 billion (11.0%). On the other hand, stone, sand and clay quarrying had the least addition to fixed assets at PHP0.1 billion (0.4%) (Table 1).

 

 

 

TECHNICAL NOTES

 

Introduction

This Special Release presents the preliminary results of the 2010 Annual Survey of Philippine Business and Industry (ASPBI) for the Mining and Quarrying sector for establishments with total employment (TE) of 20 and over.

The 2010 ASPBI is one of the designated statistical activities of the National Statistics Office (NSO) with the objective of providing key measures on the levels, structure, trends, and performance of economic activities in the country. As such, the survey generates the most critical and essential statistics required for economic planning and policies.  It was conducted in April 2011 with year 2010 as the reference period of data, except for employment which is as of November 15, 2010.

The 2009 Philippine Standard Industrial Classification (PSIC) was adopted for the first time in this survey. This is the latest version of the classification of industries in the country which conforms with the International Standard Industrial Classification Revision 4 prescribed by the United Nations.

Data are presented at the industry group or 3-digit 2009 PSIC, national level.

Legal Authority

The conduct of the ASPBI is governed by legislative acts and presidential directives, mainly Commonwealth Act No. 591 which was approved on August 19,1940. Other legislative acts are:

  • Presidential Decree No. 418
  • Executive Order No. 121
  • Executive Order No. 352
  • Executive Order No. 5

Scope and Coverage

The 2010 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 and Maintenance of Motor Vehicles, 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

Unit of Enumeration

Like all other establishments surveys conducted by the NSO, the 2010 ASPBI unit of enumeration is the establishment.  The 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.

Methodology

 

Response Rate

The response rate is 92.8 percent (77 out of 83 establishments). These include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Limitation of Data

There are 32 industry sub-classes (5-digit PSIC) which constituted the industry domains for Mining and Quarrying sector. However, due to relatively small number of establishments, the data is presented at the 3-digit PSIC group. In addition, the 2010 ASPBI for Mining and Quarrying sector with TE of 20 and over cannot provide estimates at the regional level to ensure confidentiality of individual establishment’s data. Hence, the table is presented at the national level only.

Furthermore, only the formal sector was covered in the survey.

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, 2010.

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.

Revenue includes cash received and receivables for goods/products and by-products sold and services rendered. Valuation is at producer prices (ex-establishment), net of discounts, and allowances, including duties and taxes but excluding subsidies.

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.

Intermediate cost refers to expenses incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity 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 cost 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.

 

 

  Mining and Quarrying (ASPBI)

 

Mining and Quarrying by Year