Quarrying of stone, sand and clay industry leads the sector
The preliminary results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) showed that there were 130 establishments with total employment (TE) of 20 and over in the formal sector that were engaged in mining and quarrying activities.
Among industry groups, quarrying of stone, sand and clay recorded the highest in terms of number of establishments with 61 or 46.9 percent share to the total. Mining of non-ferrous metals ores except precious metals followed with 40 establishment or 30.8 percent share. Support activities for other mining and quarrying ranked third with eight establishments or 6.2 percent of the total.
Figure 1 displays the percentage distribution of Mining and Quarrying establishments with TE of 20 and over by industry group in 2016.
By region, Central Visayas registered the highest number of Mining and Quarrying establishments, with 18 establishments or 13.8 percent of the total. CALABARZON and Caraga placed second with 17 establishments each or a combined share of 26.2 percent, followed by Central Luzon with 15 establishments (11.5%). MIMAROPA Region with 13 establishments (10.0%) ranked fifth. Meanwhile, no Mining and Quarrying establishment with TE of 20 and over was recorded in Autonomous Region in Muslim Mindanao (ARMM) in 2016. (Figure 2)
Mining of non-ferrous metal ores except precious metals industry employs 537 workers per establishment
Total employment of mining and quarrying establishments with TE of 20 and over reached 28,992 workers in 2016. Of the total workforce, 28,920 workers or 99.8 percent were paid employees while the remaining 0.2 percent were working owners and unpaid workers.
At the industry group, mining of non-ferrous metal ores except precious metals employed the highest number of workers with 21,497 or 74.1 percent of the total. This was followed by quarrying of stone, sand and clay with 3,231 workers or 11.1 percent share, while support activities for other mining and quarrying placed third with 1,743 workers or 6.0 percent share.
Figure 3 shows the distribution of employment for Mining and Quarrying establishments with TE of 20 and over by industry group in 2016.
At the regional level, Davao Region employed the highest with 5,887 workers (20.3%) followed by Caraga with 5,804 workers (20.0%). Cordillera Administrative Region (CAR) and Central Visayas came next with respective number of workers of 5,156 (17.8%) and 3,928 (13.5%), respectively.
The average number of workers per establishment for the sector was recorded at 223. Among industries, mining of non-ferrous metal ores except precious metal generated the highest average number of workers per establishment at 537 employees. Support activities for other mining and quarrying with 218 workers came next.
Other industries with average number of workers of more than 100 were as follows:
- Mining of hard coal, 166 workers per establishment
- Support activities for petroleum and gas extraction, 129 workers per establishment
Mining of non-ferrous metal ores except precious metals has the highest average annual total compensation
Total compensation paid by the sector to its employees in 2016 amounted to PHP9.1 billion, which translates to an average annual compensation of PHP313.5 thousand per employee.
Industry-wise, mining of non-ferrous metal ores except precious metals paid the highest total compensation of PHP5.9 billion, which comprised 65.5 percent of the total. This was followed by support activities for other mining and quarrying with PHP518.4 million (5.7%) and quarrying of stone, sand and clay with PHP474.7 million (5.2%).
Meanwhile, support activities for petroleum and gas extraction reported the highest average annual compensation of PHP873.2 thousand. This was followed by support activities for other mining and quarrying, and mining of non-ferrous metal ores except precious metals with average annual compensation of PHP298.5 thousand and PHP276.5 thousand, respectively.
Figure 4 presents the average annual compensation of employees for Mining and Quarrying establishments by industry group in 2016.
Mining of non-ferrous metal ores except precious metals industry generates more than half of the total value of output
In 2016, value of output generated by mining and quarrying establishments was estimated at PHP101.6 billion.
Combined value of the top two industries in terms of value of output generated an amount equivalent to PHP69.3 billion or 68.2 percent of the total. These were mining of non-ferrous metal ores except precious metals which accounted for 60.4 percent (PHP61.4 billion) and support activities for other mining and quarrying with 7.8 percent (PHP7.9 billion).
Figure 5 shows the percentage distribution of value of output for Mining and Quarrying establishments by industry group in 2016.
Among regions, Caraga generated the highest value of output of PHP24.5 billion or 24.1 percent of the total. MIMAROPA Region and Central Visayas followed next with respective output shares of PHP24.3 billion (23.9%) and PHP13.7 billion (13.5%).
Total expense for the sector reaches PHP91.5 billion
Total expense including compensation for mining and quarrying establishments with TE of 20 and over was estimated at PHP91.5 billion in 2016.
By industry group, mining of non-ferrous metal ores except precious metals reported the highest with 61.1 billion or 66.8 percent of the total expense incurred in 2016. Support activities for other mining and quarrying ranked second with PHP7.8 billion (8.6%). Quarrying of stone, sand and clay came third with a total expense of PHP4.4 billion (4.9%).
Across regions, Caraga ranked first with PHP20.9 billion worth of total expense or 22.8 percent of the total. Central Visayas followed with PHP16.9 billion or 18.5 percent of the total.
Completing the top five regions with highest total expense in 2016 were as follows:
- MIMAROPA Region, PHP15.3 billion (16.8%)
- CAR, PHP13.8 billion (15.1%)
- NCR, PHP7.1 billion (7.8%)
Mining of hard coal industry records the highest returns
Income per expense ratio for the sector with TE of 20 and over stood at 1.23. This means that for every peso spent, corresponding income of PHP1.23 was generated.
Mining of hard coal recorded an income per expense ratio of 1.57, the highest among industries. Support activities for other mining and quarrying and mining and quarrying, n.e.c. occupied the second and third spots with respective income per expense ratios of 1.26 and 1.21.
Mining of non-ferrous metal ores except precious metals industry generates the highest value added
Value added generated in 2016 by mining and quarrying establishments with TE of 20 and over summed up to PHP46.9 billion.
Among industries, mining of non-ferrous metal ores except precious metals ranked first with PHP20.8 billion worth of value added or 44.4 percent share to the total. Support activities for other mining and quarrying placed second with PHP3.4 billion or 7.3 percent share. Mining of hard coal came next with PHP2.8 billion (5.9%). Quarrying of stone, sand and clay with PHP1.6 billion (3.5%) and support activities for petroleum and gas extraction with PHP1.0 billion (2.1%) completed the top five industries with highest value added in 2016 for the sector.
At the regional level, MIMAROPA Region contributed PHP17.9 billion 38.2 percent share to the total value added. Caraga accounted for PHP10.1 billion or 21.4 percent while NCR shared 10.4 percent or PHP4.9 billion worth of value added in 2016.
Workers in support activities for petroleum and gas extraction industry are the most productive
Ratio of value added to employment, a measure of labor productivity, was recorded at PHP1.6 million per worker in 2016.
Support activities for petroleum and gas extraction was the most productive industry in 2016, generating a PHP2.5 million worth of value added per worker. This was followed by mining of hard coal with PHP2.4 million per worker, support activities for other mining and quarrying with PHP2.0 million per worker, and mining of non-ferrous metal ores except precious metals with PHP1.0 million per worker.
Figure 6 shows the labor productivity for Mining and Quarrying establishments with TE of 20 and over by industry group in 2016.
Mining of non-ferrous metal ores except precious metals industry contributes the biggest share in gross addition to tangible fixed assets
Gross addition to tangible fixed assets, defined as capital expenditures less sale of fixed assets, reached PHP16.4 billion in 2016.
By industry group, mining of non-ferrous metal ores except precious metals acquired 87.8 percent or PHP14.4 billion of the total value of gross addition to tangible fixed assets. This was followed by quarrying of stone, sand and clay with PHP1.1 billion (6.9%).
Central Visayas accounted for the highest gross addition to fixed assets of PHP10.4 billion or 63.4 percent of the total. CAR followed with PHP2.1 billion (13.0%). Other leading contributors and their corresponding shares were as follows:
- Cagayan Valley, PHP1.6 billion (9.9%)
- Caraga, PHP0.7 billion (4.1%)
- MIMAROPA Region, PHP0.3 billion (2.0%)
Total subsidy received in 2016 amounts to PHP724.1 million
Subsidy granted by the government to Mining and Quarrying establishments with TE of 20 and over in 2016 amounted to PHP724.1 million.
Support activities for other mining and quarrying industry in Davao Region were the sole recipient of government subsidy in 2016.
FOR THE OIC – Deputy National Statistician
(Sgd) DIVINA GRACIA L. DEL PRADO
Economic Sector Statistics Service
This Special Release presents the preliminary results of the 2016 ASPBI for the mining and quarrying establishments in the formal sector with total employment of 20 and over.
The 2016 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 2016.
The survey was conducted nationwide in 2017 with the year 2016 as the reference period of data, except for employment which is as of November 15, 2016.
Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2016 ASPBI questionnaires in the province as well as the online accomplishment of questionnaire through the PSA website.
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 2016 ASPBI is authorized under Republic Act No. 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 2016 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 2016 ASPBI was extracted from the 2016 List of Establishments (LE). The estimated number of establishments in operation in the country in 2016 totaled to 902,213. About 294,494 establishments (32.6% of the total establishments) belong to the formal sector of which 255,403 (86.7%) 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 2016 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)
= 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 79.2 percent (122 out of 154 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 and financial statement from Securities and Exchange Commission (SEC). However, reports of establishments which were found to be duplicates and out of business in 2016, were not imputed.
Limitation of Data
The 2016 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, 2016.
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.