Mining of non-ferrous metal ores industry dominates the sector
The preliminary results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI) showed that there were 135 establishments with total employment (TE) of 20 and over engaged in mining and quarrying activities.
Among industry groups, mining of non-ferrous metal ores recorded the highest number of establishments with 52 or 38.5 percent of the total, followed closely by quarrying of stone, sand and clay with 49 establishments or 36.3 percent. Support activities for other mining and quarrying placed third with 10 establishments or 7.4 percent share. Figure 1 displays the percentage distribution of mining and quarrying establishments with TE of 20 and over by industry group in 2013.
By region, Caraga registered the highest number of mining and quarrying establishments with 20 or 14.8 percent of the total. Central Visayas came in second with 18 establishments (13.3%), followed by CALABARZON with 16 establishments (11.9%). Meanwhile, no mining and quarrying establishment having TE of 20 and over was located in Autonomous Region in Muslim Mindanao (ARMM) in 2013.
Figure 2 shows the top ten regions in terms of number of mining and quarrying establishments with TE of 20 and over in 2013.
Mining of hard coal employs 515 workers per establishment
Total employment of mining and quarrying establishments with TE of 20 and over reached 33,900 workers in 2013. Of the total workforce, 33,869 workers or 99.9 percent were paid employees while the remaining 0.1 percent were working owners and unpaid workers.
About three-fourths of the total employment or 25,597 workers were employed by mining of non-ferrous metal ores, followed far behind by mining of hard coal with 3,090 workers or 9.1 percent share. Figure 3 shows the distribution of employment for mining and quarrying establishments with TE of 20 and over by industry group in 2013.
The average number of workers per establishment for the sector was recorded at 251. Among industries, mining of hard coal generated the highest average number of workers per establishment with 515 employees. This was followed closely by mining of non-ferrous metal ores with 492 workers. Other industries with average number of workers of more than 100 are as follows:
- Extraction of natural gas, 164 workers
- Support activities for other mining and quarrying, 161 workers
- Support activities for petroleum and gas extraction, 138 workers
At the region level, establishments located in Cordillera Administrative Region (CAR) registered the highest average number of workers with 560 per establishment, followed by establishments in Caraga with 419 workers. Establishments in Western Visayas and Central Visayas came next with respective average number of 367 and 353 workers.
Extraction of natural gas industry pays the highest average annual compensation
Total compensation paid by the sector to its employees in 2013 amounted to PHP10.5 billion, translating to an average annual compensation of PHP310,548 per employee.
With respect to industry groups, mining of non-ferrous metal ores paid the highest total compensation of PHP7.3 billion, comprising more than two-thirds (69.7%) of the total. This was distantly followed by mining of hard coal with PHP1.1 billion (10.2%) and extraction of natural gas with PHP973.1 million (9.3%).
Employees in extraction of natural gas earned an average annual compensation of PHP2.0 million, six times more than the sector’s average. This was followed by employees in support activities for petroleum and gas extraction, and mining of hard coal with average annual compensation of PHP762,896 and PHP346,386, respectively. Figure 4 presents the average annual compensation of employees for mining and quarrying establishments by industry group in 2013.
Mining of non-ferrous metal ores generates almost half of the total value of output
In 2013, value of output generated by mining and quarrying establishments was estimated at PHP181.9 billion.
Combined value of the top two industries in terms of value of output generation comprised 85.7 percent of the total. Mining of non-ferrous metal ores produced almost half (49.4%) or PHP89.9 billion of the total value of output while it was PHP66.1 billion (36.3 %) for extraction of natural gas. Figure 5 shows the percentage distribution of value of output for mining and quarrying establishments by industry group in 2013.
Among regions, mining and quarrying establishments located in MIMAROPA generated PHP67.1 billion or 36.9 percent of the total value of output. Establishments in Caraga and Central Visayas followed next with respective output share of 17.0 percent (PHP31.0 billion) and 13.9 percent (PHP25.4 billion).
Total expense reaches PHP110.6 billion
Total expense in 2013 for mining and quarrying establishments with TE of 20 and over was estimated at PHP110.6 billion.
By industry group, almost two-thirds (62.0%) or PHP68.5 billion of the total expense was incurred by mining of non-ferrous metal ores. Extraction of natural gas ranked second with PHP18.5 billion (16.7%). Mining of hard coal came in third with a total expense of PHP15.1 billion (13.6%).
Across regions, total amount spent by the establishments in Caraga reached PHP24.3 billion or 22.0 percent of the total expense. This was followed by establishments in MIMAROPA with PHP21.3 billion or 19.3 percent of the total. Other leading regions with more than 10 percent share in the total expense are as follows:
- Western Visayas, PHP14.2 billion (12.9%)
- Central Visayas, PHP13.7 billion (12.4%)
- CAR, PHP12.5 billion (11.3%)
Extraction of natural gas records the highest returns
Income per expense ratio for establishments with TE of 20 and over stood at 1.54. This means that for every peso spent, corresponding income of PHP1.54 was generated.
Extraction of natural gas recorded an income per expense ratio of 3.18, the highest among industries. Mining of hard coal and quarrying of stone, sand and clay placed in second and third spots with respective ratios of 1.35 and 1.23.
Value added stands at PHP109.6 billion
Value added generated in 2013 by mining and quarrying establishments with TE of 20 and over summed up to PHP109.6 billion.
Among industries, extraction of natural gas generated more than half (52.3%) or PHP57.3 billion of the total value added. Mining of non-ferrous metal ores placed second with PHP41.2 billion or 37.6 percent share. Mining of hard coal came next with PHP6.9 billion (6.3%). The shares of other industries to the total value added were less than 2.0 percent each.
At the regional level, mining and quarrying establishments located in MIMAROPA contributed PHP56.4 billion or more than half (51.4%) of the total value added, distantly followed by Central Visayas with PHP16.4 billion (15.0%) and Caraga with PHP12.3 billion (11.2%). Establishments in NCR and CAR came next with PHP6.5 billion (6.0%) and 5.8 billion (5.3%), respectively.
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 PHP3.2 million per worker in 2013.
Establishments engaged in extraction of natural gas were the most productive in 2013, generating PHP116.8 million per worker. This was followed by mining of hard coal (PHP2.2 million), support activities for petroleum and gas extraction (PHP1.7 million), and mining of non-ferrous metal ores (PHP1.6 million) which generated almost the same productivity of about two million pesos per worker. Figure 6 shows the labor productivity for mining and quarrying establishments with TE of 20 and over by industry group in 2013.
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 2013, defined as capital expenditures less sale of fixed assets, reached PHP44.9 billion.
By industry, mining of non-ferrous metal ores acquired more than half (52.0%) or PHP23.3 billion of the total value of gross addition to tangible fixed assets, followed by extraction of natural gas with PHP18.0 billion (40.2%).
MIMAROPA accounted for the highest gross addition to fixed asset at PHP19.3 billion or 43.1 percent of the total. Central Visayas followed with PHP10.5 billion (23.4%). Other leading contributors and their corresponding shares are as follows:
- Caraga, PHP3.4 billion (7.6%)
- Davao Region, PHP3.2 billion (7.2%)
- CAR, PHP2.7 billion (6.0%)
Total subsidies received amounts to PHP8.9 million
Subsidies granted by the government to mining and quarrying establishments with TE of 20 and over amounted to PHP8.9 million.
Establishments engaged in mining of non-ferrous metal ores located in Zamboanga Peninsula were the only recipient of subsidies in 2013.
This Special Release presents the preliminary results of the 2013 ASPBI for the mining and quarrying establishments with total employment of 20 and over.
The 2013 ASPBI is a forerunner of the 2010 ASPBI and 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.
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 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
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.
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 90.3 percent (168 out of 186 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.