The mining industry—constantly under attack by non-governmental groups for its effects on the environment—is getting higher subsidies from the state.
According to the latest report of the Philippine Statistics Authority (PSA), the government increased its subsidies to mining and quarrying establishments by 59.3 percent in 2012.
In the final results of the 2012 Census of Philippine Business and Industry-Mining and Quarrying for All Establishments, the PSA said subsidies to the sector increased to P369.4 million in 2012, from P231.8 million in 2010.
The bulk of these subsidies—P367.9 million, or 99.6 percent of the total—was extended to nickel- ore mining. Only P1.4 million, or 0.4 percent of the total, was extended to stone quarrying, except limestone and marble.
“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,” the PSA explained.
Nickel-ore mining establishments accounted for only 7.9 percent, or 25 establishments, in the Mining and Quarrying sector.
Sand and gravel quarrying had the most number of establishments at 77 firms, or 24.3 percent of the total, in the Mining and Quarrying sector.
In 2012 the PSA said there were 317 establishments engaged in mining and quarrying activities in the formal sector of the economy.
However, nickel-ore mining establishments employed the most number of workers, followed by copper-ore mining.
The PSA said 31.8 percent, or 12,362 workers, of the total employed in the Mining and Quarrying sector were in nickel-ore mining establishments. In copper-ore mining, there were 8,242 workers, or 21.2 percent of the total.
Total employment of all mining and quarrying establishments reached 38,825 in 2012, an increase of 44.7 percent from 26,834 workers recorded in 2010.
In terms of value output, the entire Mining and Quarrying sector generated a total of P191.3 billion in 2012, a 90.6-percent increase from the P100.4 billion produced in 2010.
The extraction of natural gas produced 34.9 percent, or P66.8 billion, of the total value of output. This was followed by nickel-ore mining, with an output share of 21.5 percent, or 41.2 billion.
The value added generated by mining and quarrying establishments reached P114.2 billion in 2012, representing an increase of 109.7 percent from P54.5 billion in 2010.
Extraction of natural gas generated 50.1 percent, or P57.2 billion, of the total value added. Nickel-ore and copper-ore mining contributed P21.8 billion, or 19.1 percent; and P17.9 billion, or 15.7 percent, respectively.