Sand and gravel quarrying industry dominates the sector in terms of number of establishments
The final results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) showed that there were 228 establishments engaged in the mining and quarrying activities in the formal sector of the economy.
Among the industry sub-classes, sand and gravel quarrying recorded the highest number of establishments with 60 or 26.3 percent of the total. Gold ore mining placed second with 26 establishments or 11.4 percent of the total. Nickel ore mining and stone quarrying, clay and sand pits, n.e.c. posted third and fourth places with 23 establishments (10.1%) and 20 establishments (8.8%), respectively.
Other industries with more than 10 establishments are as follows:
- Limestone quarrying, 19 establishments (8.3%)
- Extraction of salt, 14 establishments (6.1%)
- Support activities for other mining and quarrying, 11 establishments (4.8%)
Figure 1 displays the percentage distribution of all mining and quarrying establishments by industry sub-class in 2015.
Copper ore mining industry employs on the average 1,515 workers per establishment
Total employment of all mining and quarrying establishments reached 32,249 workers in 2015. Of the total workforce, 32,091 or 99.5 percent were paid employees while the remaining 0.5 percent were working owners and unpaid workers.
By industry, gold ore mining which ranked second in terms of the number of establishments employed the biggest number of workers recorded at 8,057 or 25.0 of the total employment of the sector. Copper ore mining with 7,576 workers (23.5%) placed second highest in number of employment. Nickel ore mining occupied the third spot with 7,106 workers or 22.0 percent of the total.
Figure 2 shows the distribution of employment for all mining and quarrying establishments by industry sub-class in 2015.
The average number of workers per establishment for the sector was recorded at 141. Among industries, copper ore mining generated the highest average number of workers per establishment with 1,515 employees, about 10 times more than the sector’s average. This was followed by mining of hard coal and gold ore mining with respective average of 364 and 310 workers.
Other industries with more than 100 average number of workers are as follows:
- Nickel ore mining, 309 workers
- Extraction of natural gas, 114 workers
- Support activities for other mining and quarrying, 103
Average annual compensation highest for nickel ore mining industry
Total compensation paid by the sector to its employees amounted to PHP11.4 billion, accounting for 9.9 percent of the total expense in 2015.
By industry, copper ore mining paid the highest compensation of PHP2.5 billion, accounting for 21.9 percent of the total. Nickel ore mining paid second highest with PHP2.4 billion (21.3%), followed by extraction of natural gas with PHP1.9 billion (16.2%).
In 2015, mining and quarrying sector paid an average annual compensation of PHP356,558 per employee. At the industry level, extraction of natural gas were paid the highest average annual pay of PHP4.1 million per employee. Oil and gas extraction activities on a fee or contract basis followed with average annual compensation of PHP1.3 million. Support activities for other mining and quarrying industries and nickel ore mining were paid on the average, PHP0.4 million and PHP0.3 million per year, respectively.
Figure 3 presents the average annual compensation of employees for all mining and quarrying establishments by industry sub-class in 2015.
Extraction of natural gas industry generates the highest value of output
In 2015, value of output generated by all mining and quarrying establishments was estimated at PHP149.2 billion.
Value of output generated by the top three industries accounted for (69.2%) of the total. Extraction of natural gas led all industries, accounting for PHP41.9 billion or 28.1 percent of the total value of output. Nickel ore mining placed second while copper ore mining occupied the third spot with respective output values of PHP41.7 billion (27.9%) and PHP19.6 billion (13.1%).
The percent shares of the next three highest industries are as follows:
- Mining of hard coal, PHP17.5 billion, 11.7 percent
- Support activities for other mining and quarrying, PHP9.0 billion, 6.1 percent
- Gold ore mining, PHP8.5 billion, 5.7 percent
Figure 4 shows the percentage distribution of value of output for all mining and quarrying establishments by industry sub-class in 2015.
Total expense reaches PHP115.8 billion
Total expense, including compensation, incurred by all mining and quarrying establishments in 2015 was estimated at PHP115.8 billion.
Nickel ore mining spent the highest among industries with PHP31.5 billion or 27.2 percent of the total expense. This was followed by extraction of natural gas with PHP22.6 billion or 19.5 percent share. Copper ore mining ranked third with PHP22.2 billion (19.2%).
Extraction of natural gas industry records the highest returns
Income per expense ratio stood at 1.37. This means that for every peso spent, corresponding income of PHP1.37 was generated.
Among industries, chromite ore mining recorded the highest income per expense ratio of 2.86. Extraction of natural gas and mining of hard coal placed second and third with respective ratios of 1.89 and 1.58.
Other industries which registered highest return than the sectors average in 2015 were:
- Support activities for other mining and quarrying at 1.46 and
- Stone quarrying, except limestone and marble at 1.42 income per employee.
Extraction of natural gas industry generates the highest value added
Value added generated in 2015 by all mining and quarrying establishments was estimated at PHP80.0 billion.
By industry, extraction of natural gas generated the biggest share amounting to PHP31.5 billion or 39.3 percent of the total value added. Nickel ore mining came in next with PHP17.9 billion (22.4%), followed by mining of hard coal with PHP9.4 billion (11.7%).
Other industries with billion mark total value added are the following:
- Copper ore mining, PHP7.6 billion (9.5%)
- Support activities for other mining and quarrying, PHP5.7 billion (7.1%)
- Gold ore mining, PHP3.5 billion (4.3%)
- Oil and gas extraction activities on a fee or contract basis, PHP2.0 billion (2.6%)
Extraction of natural gas industry generates highest labor productivity
The ratio of value added to employment, a simple measure of labor productivity, was recorded at PHP2.5 million per worker in 2015.
Extraction of natural gas generated the highest labor productivity in 2015, amounting to PHP69.3 million per worker. This was followed by support activities for other mining and quarrying (PHP5.0 million), mining of hard coal (PHP3.2 million), oil and gas extraction on a fee or contract basis (PHP2.9 million), nickel ore mining (PHP2.5 million) and copper ore mining (PhP1.0 million) per worker.
Figure 5 shows the labor productivity for all mining and quarrying establishments by industry sub-class in 2014.
Extraction of natural gas industry contributes the biggest share in gross addition to tangible fixed assets
Gross addition to tangible fixed assets acquired in 2015, defined as capital expenditures less sale of fixed assets, was valued at PHP21.8 billion.
At the industry level, extraction of natural gas acquired PHP8.5 billion or nearly two-fifths (38.9%) of the total value of gross additions to tangible fixed assets. This was followed by gold ore mining with PHP4.3 billion (19.5%).
Other industries with a billion mark shares are as follows:
- Nickel ore mining, PHP2.7 billion (12.4%)
- Copper ore mining, PHP2.3 billion (10.4%)
- Mining of hard coal, PHP1.7 billion (8.0%)
- Support activities for other mining and quarrying, PHP1.7 billion (7.8%)
Total subsidy received by the sector reach PHP0.2 million
Subsidy granted by the government to support the business operation of mining and quarrying sector amounted to PHP0.2 million, of which only nickel ore mining was the recipient in 2015.
This Special Release presents the final results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) for all mining and quarrying (Sector B) establishments.
The 2015 ASPBI is 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 2015. The 2015 Survey on Information and Communication Technology (SICT) was undertaken as a rider to this survey.
The survey was conducted nationwide in April 2016 with the year 2015 as the reference period of data, except for employment which is as of November 15, 2015.
Establishment Data Management System (EDMS) was still utilized in the decentralized processing of the 2015 ASPBI questionnaire in the province as well as the online accomplishment of the questionnaire through the PSA website.
Data are presented at the national and industry sub-class or 5-digit 2009 Philippine Standard Industrial Classification (PSIC).
The conduct of the 2015 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 2015 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
Thus, the 2015 ASPBI covered only the following economic units:
- All establishments with total employment (TE) of 10 and over, and
- All establishments with TE of less than 10, except those establishments with Legal Organization = 1 (single proprietorship) and Economic Organization = 1 (single establishment), that are engaged in economic activities classified according to the 2009 PSIC.
Frame of Establishments
The frame for the 2015 ASPBI was extracted from the 2015 List of Establishments (LE). The estimated number of establishments in operation in the country in 2015 totaled to 909,786. About 259,839 establishments (29.0% of the total establishments) belong to the formal sector of which 223,821 (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 2015 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.
All establishments 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 an industry domain in each geographic domain (region) is
p= 1, 2,..., 17 regions (geographic domains)
xpj= value of the jth establishment in an industry domain within each region
j= 1, 2, 3, …,mp establishments
mp= number of establishments 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 was 89.4 percent (296 out of 331 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Report of the remaining non-reporting establishments were taken from other available administrative data source and financial statements from Securities and Exchange Commission (SEC). However, there were establishment which were found to be duplicates, out of scope and out of business in 2015.
Limitation of Data
The 2015 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, 2015.
- 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.
ROMEO S. RECIDE