Mining sector got P991 million perks, other incentives in 2014–PSA

By Cai Ordinario -  March 16, 2017

http://www.businessmirror.com.ph/mining-sector-got-p991-million-perks-other-incentives-in-2014-psa/

Filipinos spent nearly a billion pesos in subsidies for the mining sector in 2014, according to the Philippine Statistics Authority (PSA).

Based on the 2014 Annual Survey of Philippine Business and Industry, the PSA said the government extended as much as P991 million in tax perks and other incentives to the sector.

“Establishments engaged in mining of nonferrous metal ores, except precious metals in Caraga, were the most recipient of subsidies in 2014 amounting to P974.9 million,” the PSA said.

These subsidies are grants in the form of financial assistance, tax exemption or tax privilege given by the government to aid and develop an industry.

In 2014 the value of output generated by mining and quarrying establishments reached P202.1 billion.

Combined value of the top 2 industries in terms of value of output generation amounted to P179.3 billion.

Mining of nonferrous metal ores, except precious metals, accounted for more than half at 57.3 percent and extraction of natural gas shares 31.4 percent of the total.

Among regions, Mimaropa generated P74.1 billion, or 36.7 percent of the total value of output.

Caraga and Central Visayas followed with respective value of output shares of 26.4 percent at P53.3 billion and 11.9 percent, or P24.1 billion.

Further, the income-per-expense ratio for establishments with total employment of 20 and over stood at 1.50, which means that for every peso spent, corresponding income of P1.50 was generated.

Firms engaged in the extraction of natural gas recorded an income-per-expense ratio of 2.76, the highest among industries.

Establishments in the mining of nonferrous metal ores, except precious metals, and support activities for other mining and quarrying occupied second and third spots, with ratios of 1.39 and 1.38, respectively.

In 2014 there were a total of 135 establishments with total employment of 20 and over engaged in mining and quarrying activities.

Firms in the mining of nonferrous metal ores except precious metals and quarrying of stone, sand and clay had the highest number, with 51 establishments each or a combined share of 75.6 percent out of the total.

This was followed by support activities for other mining and quarrying; and mining and quarrying, with nine establishments, or 6.7- percent share each of the total.

In terms of region, Central Visayas registered the highest number of mining and quarrying establishments with 19, or 14.1 percent of the total.

Caraga came in second with 17 establishments, or 12.6 percent of the total, followed by Calabarzon, with 16 establishments, at 11.9 percent.

Meanwhile, no mining and quarrying establishment with total employment of 20 and over was recorded in the Autonomous Region in Muslim Mindanao in 2014.