Industry Section B includes 16 industry sub-classes covering the activities of extraction of minerals occurring naturally as solids (coal and ores), liquids (petroleum) or gases (natural gas). This section also includes supplementary activities aimed at preparing the crude materials for marketing, particularly, crushing, grinding, cleaning, drying, sorting, concentrating ores, liquefaction of natural gas and agglomeration of solid fuels.

Figure 1 presents the selected statistics on the number of establishments, total employment, total revenue, total expense and total value added. It also includes ratios on employment per establishment, revenue per expense and value added per employee. Growth rates on these selected statistics and indicators from the results of the 2012 CPBI are also presented.

Sand and gravel quarrying comprised half of the total number of establishments

In 2018, there were 278 establishments in the formal sector of the economy engaged in mining and quarrying industry. The number decreased by 12.3 percent from the 317 establishments recorded in 2012. (Table A, and Figure 1)

Sand and gravel quarrying industry group recorded that highest number with 139 establishments which comprised about half of the total establishments in the sector.

This was followed by nickel ore mining with 27 establishments (9.7%), and limestone quarrying with 23 establishments (8.3%). (Tables 1A, and Figure 2)

Ilocos Region topped in terms of number of mining and quarrying establishments

Of the 278 establishments engaged in mining and quarrying industry, 39 establishments or 14.0 percent of the total count are located in Ilocos Region, placing the region on top among other regions in terms of number of establishments.

This was followed by Central Visayas, and CALABARZON with 31 establishments (11.2%), and 28 establishments (10.1%), respectively. (Table 3A)

Gold ore mining engaged the highest number of employed workers

The mining and quarrying establishments engaged a total of 37,721 persons which translates to a -2.8 percent decrease from the total employment of 38,825 recorded in 2012. (Table A, and Figure 1)

On the average, there were 136 persons employed per establishment. (Table 2)

Gold ore mining engaged the highest employment with 11,210 persons or 29.7 percent of the total, followed by nickel ore mining with 9,905 employees (26.3%), and copper ore mining¹. (Table 1A, and Figure 3)

In terms of average employment per establishment, copper ore mining¹ recorded the highest ratio. This was followed by gold ore mining (623), mining of hard coal (547), nickel ore mining (367), support activities for other mining and quarrying (248), and extraction of natural gas¹. These are the industries with ratios higher than the national level (136). (Table 2)

Highest number of mining and quarrying workers were in Caraga

Caraga led other regions in terms of total employment with 8,976 employees or 23.8 percent of the total, followed by Cordillera Administrative Region with 5,461 (14.5%) and Central Visayas with 4,769 (12.6%). (Table 3A)

In addition to the 37,721 employees in mining and quarrying, the industry also engaged 16,625 workers on sub-contract agreement or under manpower agencies. (Table 1)

Workers on sub-contract agreement are dominant among establishments in Caraga with 10,506 (63.2%), MIMAROPA with 2,179 (13.1%), and Davao Region with 1,339 (8.1%). (Table 3A)

Across industry sub-classes, majority of sub-contract workers were engaged in nickel ore mining with 9,902 or 59.6 percent of the total number of sub-contract workers. (Table 1A)

Every paid employee received an average annual compensation of PhP 547,547

A total of PhP 20.6 billion was spent by the establishments in mining and quarrying industry for the compensation of its employees. This translates to an average annual compensation per paid employee at PhP 547,547. (Table 1)

Paid employees in extraction of crude petroleum received the highest average annual compensation of PhP 1,995,432. This was followed by extraction of natural gas¹, and gold ore mining with PhP 718,657, and nickel ore mining with PhP 578,774. These are the industry sub-classes with annual compensation higher than the national level ratio. (Table 1, and Figure 4)

Region-wise, establishments located in the National Capital Region paid the highest average annual compensation per paid employee of PhP 1,105,460. This was followed by Caraga Region with PhP 976,381, MIMAROPA with PhP 611,617, and Cagayan Valley¹. Ratios of other 14 regions were lower than the national level. (Table 3)

Nickel ore mining contributed the biggest share to total revenue

The mining and quarrying industry generated a total revenue of PhP 189.8 billion, indicating an increase of 1.4 percent from the PhP 187.2 billion reported in 2012. (Table A, and Figure 1)

Nickel ore mining contributed the biggest share to total revenue with PhP 48.9 billion or 25.8 percent of the total. The same industry also incurred nearly the same share to total expense with PhP 36.9 billion (24.9%).

Gold ore mining generated the second highest revenue with PhP 37.0 billion or 19.5 percent share and incurred the highest expense with PhP 39.0 billion (26.3%).

Mining of hard coal contributed the third biggest share to total revenue and total expense with PhP 33.4 billion (17.6%) and PhP 21.7 billion (14.6%), respectively. (Table 1A, and Figure 5)

Known as the mining hub of the country, Caraga generated the highest revenue, and incurred the highest expense

Of the PhP 189.8 billion total revenue generated by the mining and quarrying industry, Caraga generated PhP 40.0 billion (21.1%), the highest among other regions. Similarly, Caraga incurred the highest expense with PhP 35.1 billion (23.7%).

Western Visayas contributed Php 33.8 billion (17.8%) to the total revenue and PhP 21.9 billion (14.8%) to the total expense. CALABARZON posted the third highest revenue generated with about PhP 30.0 billion (15.8%). (Table 3A)

Revenue per expense ratio of most regions exceeded the national level

The PhP 189.8 billion total revenue generated, and the PhP 148.2 billion total expense incurred translated to a revenue-expense ratio of 1.3. This indicates that, on the average, establishments engaged in this industry earned 30 centavos for every one-peso expense.

Four of the 17 regions have higher revenue-expense ratios than the national level. These include CALABARZON (2.1), MIMAROPA (1.7), Western Visayas (1.5), and Eastern Visayas (1.4). (Table 4)

Among industry sub-classes, extraction of natural gas¹, silica sand and silica stone quarrying¹, mining of hard coal (1.5) and stone quarrying, clay and sand pits, n.e.c. (1.4) have revenue-expense ratio higher than the national level. (Table 2)

Value-added for mining and quarrying amounted to PhP 107.7 billion

Total value-added generated by the industry amounted to PhP 107.7 billion. This showed a decrease of -5.7 percent from the PhP 114.2 billion recorded in 2012. (Table A, and Figure 1)

Nickel ore mining posted the highest value-added with PhP 31.5 billion or 29.2 percent of the total. This was followed by extraction of natural gas¹ and by gold ore mining which generated a value-added of PhP 20.0 billion (18.6%). (Table 1A, and Figure 6)

Caraga contributed the highest value-added to total

Of the PhP 107.7 billion total value-added generated by the industry, PhP 28.2 billion (26.2%) is contributed by Caraga, the highest among other regions.

This was followed by CALABARZON with PhP 23.3 billion or 21.6 percent of the total. Western Visayas ranked third with PhP 16.1 billion or 15.0 percent of the total. (Table 3A)

DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General

¹  Data suppressed due to statistical disclosure control