INDUSTRY

CAREER GUIDE:
1
Mining

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This career guide was written by Dr. Roberto Raymundo as part of the
project Career Guides for Selected Industries, commissioned by the
Bureau of Local Employment of the Department of Labor and
Employment to the Angelo King Institute of De La Salle University.
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 TABLE OF CONTENTS

Page
EXECUTIVE SUMMARY 4
I. Nature of the Industry 7
a. Mining and its role in the Philippine Economy 7
a.1 Methods for extracting mineral deposits 8
a.2 Mining sector administration 9
b. Recent developments during the past three years 10
b.1 Large Scale and Small Scale Metallic Mining 11
Operations
b.2 Number of operating metallic mines 12
b.3 Number of operating non-metallic mines 13
c. Regional Distribution 14
c.1 Industry Revenue Shares Across Regions 16
c.2 Large Scale Corporate Mining Operations 17
d. Industry Organizations 19
d.1 Government Agencies 19
d.2 Non-Government Organizations (NGOs) 20
II. Industry Sub-sectors 21
a. Type of Establishments 22
b. Distribution of Employment 24
III. Working Conditions 24
a. Nature of Employment 24
b. Occupations in the Industry 26
b.1 Professional 26
b.2 Semi-Professional 27
b.3 Technical Jobs 27
b.4 Skilled Jobs 27
b.5 Office Workers 28
c. Working Environment 29
d. Working Hours 30
e. Fringe Benefits 31
f. Occupational Health Hazards 32
IV. Total Mining and Quarrying Employment in the 34
Philippines
V. Average Monthly Wage Rates for Industry Occupations 36
a. Average monthly wage rates for occupations in the 36
metallic ore mining industry
b. Average monthly wage rates for occupations in the 38
non-metallic mining and quarrying industry
VI. Educational Requirements, Training and 40
Advancement
a. Mining Industry Professionals 40

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 a.1 Mining Engineers 41
a.2 Metallurgical Engineers 43
a.3 Geologists 44
a.4 Geodetic Engineers 44
b. Recommendations for bridging programs 45
to address the shortages
c. Other support staff 46
d. Mine workers and heavy equipment 47
operators
e. Training programs for heavy equipment 49
operators
f. Technical / vocational courses for high school 51
graduates
g. Entrepreneurial options 52
VII. Job Outlook and Prospects 53
VIII. References 57

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EXECUTIVE SUMMARY

The mining industry in the Philippines plays a very significant

role in the pursuit of industrial development because of the
sector’s ability to provide mineral resources that serve as raw
materials for manufacturing, construction, the utilities as well
as the transportation and communications sector. It is also a
major contributor of foreign currency through the exports of
mineral ore and other processed mineral products and
provides employment to communities in far flung areas where
the only source of economic activity is mining operations. The
extraction of copper, gold, silver, nickel, coal, gas, oil, stone
and gravel as well as finding other new mineral deposits is the
primary function of the mining industry.

The Philippines has rich mineral resources and has one of the
largest reserves of gold, copper, nickel, chromium, iron,
bauxite, marble and limestone among others (Rovillos, Ramo
and Corpus, 2003). Nickel is currently the country’s most
economically important mineral resource with the Philippines
accounting for 5 percent of global production in 2007, based
on the US Geological Survey Report. Because of its complex
geologic history and diverse rock types, the country is also
characterized by an equally diverse group of mineral deposits
(Tujan and Guzman, 2002). The country also possesses
abundant deposits of other metallic minerals such as iron,
lead, zinc, platinum, manganese, molybdenum, cobalt,
aluminum and mercury. The non-metallic minerals of
economic significance are gypsum, salt, sand and gravel,
marble, clay, limestone, feldspar, dolomite, magnesite,
phosphate rock, guano and sulfur (Chamber of Mines in the
Philippines, 1991). Since 2004, the government has been
promoting over 60 mining, exploration and processing projects
which collectively can bring up to $14.8 billion in investments
until 2013 (DENR - Mines and Geosciences Bureau (MGB)
Report, 2009).

The Philippine mining industry’s output measured in terms of

gross value added for the year 2010, was estimated at P143.4
billion. The sector’s contribution to the economy was roughly
1.7 percent of gross domestic product (GDP). For the same
year, the mining industry also significantly contributed to
foreign currency receipts, with total minerals and mineral

4
product exports at $1.870 billion. This makes up
approximately 3.7 percent of total exports in the Philippines.

Minerals and mineral product export grew by 27.2 percent in

2010 from the 2009 level of $1.470 billion. Although there
was growth in 2010, these levels are way below those
recorded in 2007 and 2008 which were at $2.605 and $2.498
billion respectively. In 2009, minerals and mineral product
exports contributed 3.9 percent of total exports while non-
metallic mineral manufactures contributed 0.4 percent (Bangko
Sentral ng Pilipinas).

Between 2003 and 2008, direct employment in the mining

industry increased from 104,000 (0.3 percent of the national
workforce) to 158,000 (0.5 percent), or 54,000 mining jobs
generated in five years (Ramos, 2010 ). The contribution of
the mining and quarrying sector to total employment has
remained stable at 0.5 percent during the last three years.
Based on the estimates from the Department of Labor and
Employment (DOLE), the 158,000 workers employed in this
sector in 2008, had grown to 169,000 in 2009 and 197,000 by
2010. These figures include workers directly employed by
the mining and quarrying firms which are all involved in the
four stages namely: 1) exploration; 2) development and
construction; 3) utilization and commercial operation and ; 4)
decommissioning, final mining stage and rehabilitation. In
addition, the employment estimates also include those
involved in the processing of mineral raw materials and other
downstream activities. Government estimates that for every
job generated in the mining industry, roughly four to six more
jobs are indirectly generated in the upstream and downstream
sectors. (DENR - Mines and Geosciences Bureau (MGB)
Report, 2009).

The demand for manpower in the metallic mining industry

depends on the number of active exploration activities being
undertaken all over the country, the expansion of operations
by existing firms, the planned operation of new enterprises as
well as the re-operation of companies that had closed down
during the previous decade. In the non-metallic sector, the
performance of the construction industry serves as a leading
indicator because of the demand for cement, gravel, sand,
limestone and other mineral products used for residential and
non-residential construction (Halcon, 2005)
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The global economic crisis in 2008 and the concomitant fall in
demand for metals had a negative impact on the Philippine
mining industry. However, prospects for employment
expansion for 2011 and beyond, are moderately good
considering that mining output is expected to grow at an
annual average rate of 2.57 percent along with increasing
investments (Wood, 2010). The increase in the number of
operating mines from fourteen in 2003 to twenty eight in 2010
shows the continuing efforts of expansion being undertaken
by the private sector (along with government support) that is
expected to boost output and employment growth. The
increase in the production volume of the country’s top three
minerals namely: gold, copper and nickel provides a good
indication of prospects within the medium term. The
operation of new mines, higher mineral product demand and
favorable prices have raised copper and nickel production to
over 49,000 and 137,000 metric tons respectively, during the
year 2009. The scale of untapped natural resources in the
country (with an estimated value of over $ 1 trillion) should be
making the country a key target for foreign mining concerns
over the long term. (Business Monitor International, 2011).

The mining industry holds a lot of potential and performs a

complementary role in industrial development. It will be
necessary to use this potential if the country wants to attain
its economic development goals within the next decade, but at
the same time remain prudent in the use of these natural
mineral resources, so that succeeding generations may still
benefit from it. Responsible mining should protect the
environment, and restore mine sites to their original condition
through reforestation efforts, alongside sustainable livelihood
activities for communities that will be left behind. A good
compromise between sound environmental protection and
effective regulation of mining activities should reduce the
hostility coming from anti-mining advocates and promote
efforts to tap the country’s unused mineral potential. Such
efforts should continue encouraging investment into mining
along with job creation and the development of both upstream
and downstream mineral processing activities.

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I. Nature of the Industry

a. Mining and its role in the Philippine Economy

The mining industry in the Philippines plays a very significant

role in the pursuit of industrial development because of the
sector’s ability to provide mineral resources that serve as raw
materials for manufacturing, construction, the utilities as well
as the transportation and communications sector. It is also a
major contributor of foreign currency through the exports of
mineral ore and other processed mineral products and
provides employment to communities in far flung areas where
the only source of economic activity is mining operations. The
extraction of copper, gold, silver, nickel, coal, gas, oil, stone
and gravel as well as finding other new mineral deposits is the
primary function of the mining industry.

Mining is defined as the exploration, extraction, and

processing of minerals such as coal, ores, crude, petroleum
and natural gas. Quarrying on the other hand is the extraction
of building and monumental stone, clay, sand and gravel,
guano gathering and salt evaporation (NSO, 2008). The
industry is composed of four stages namely: 1) exploration;
2) development and construction; 3) utilization and
commercial operation and ; 4) decommissioning and final
mining stage and rehabilitation (Mines and Geosciences
Bureau, 2008)

The Philippines has rich mineral resources and has one of the
largest reserves of gold, copper, nickel, chromium, iron,
bauxite, marble and limestone among others (Rovillos, Ramo
and Corpus, 2003). Nickel is currently the country’s most
economically important mineral resource with the Philippines
accounting for 5 percent of global production in 2007, based
on the US Geological Survey Report. Because of its complex
geologic history and diverse rock types, the country is also
characterized by an equally diverse group of mineral deposits
(Tujan and Guzman, 2002). The country also possesses
abundant deposits of other metallic minerals such as iron,
lead, zinc, platinum, manganese, molybdenum, cobalt,
aluminum and mercury. The non-metallic minerals of
economic significance are gypsum, salt, sand and gravel,
marble, clay, limestone, feldspar, dolomite, magnesite,
phosphate rock, guano and sulfur (Chamber of Mines in the
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Philippines, 1991). Since 2004, the government has been
promoting over 60 mining, exploration and processing projects
which collectively can bring up to $14.8 billion in investments
until 2013 (DENR - Mines and Geosciences Bureau (MGB)
Report, 2009).

Metallic mining involves the extraction of metal ores such as

gold, silver, iron, copper, lead and zinc. Gold and silver are
mainly used in jewelry and high end electronics. Iron is used
to produce steel while copper is the main component for
electrical wiring. Lead is used for batteries, while zinc is used
to coat iron and steel to reduce corrosion and as an alloy in
the making of bronze and brass. On the other hand, the non-
metallic mining and quarrying operations include the
production of crushed stone, sand and gravel for use in the
construction of roads and buildings. Surface mining for stone
is also known as “quarrying” wherein workers use machines to
extract stone such as marble or granite. Oil and gas extraction
activities particularly refer to the production of crude petroleum
and natural gas which are inputs to the transportation and
electric power generating industries. Petroleum products are
also the raw materials for plastics, chemicals, medicines,
fertilizers, and synthetic fibers. Petroleum or crude oil as well
as natural gas are found in underground pockets beneath
layers of impermeable rock and these are extracted using a
variety of methods using sophisticated equipment and highly
specialized workers . (Mining Industry, US Bureau of Labor
Statistics 2010).

a.1 Methods for extracting mineral deposits

Finding mineral reserves requires exploration activities

involving prospectors and geologists looking for natural
concentrations of minerals by using maps and taking samples
of rock for examination. Areas with mineral potential are
studied by geophysicists by sending electro-magnetic signals
into the ground and reading the signals that bounce back up.
These signals can provide indications if there are metallic
minerals found in underground layers of rock (Department of
Education Culture and Employment, Northwest Territories)

The extraction of minerals may be done using two methods

and these are: 1) surface mining/strip mining/open pit mining
and; 2) underground mining. Surface mining uses a method
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called strip mining wherein workers use huge earth moving
equipment such as power shovels and or draglines to scoop
off the layers of soil and rock to uncover the mineral deposits.
Large open pit mining is used if the minerals are close to the
surface, or a shaft for an underground mine is built when
resources are further down. Huge holes are made in the
ground and are mined by blasting rock from the sides and
bottom with explosives, carrying out the broken up material in
trucks and repeating the process. A mill is built for the rock to
be crushed and sorted by large machines. Large rocks with
minerals are broken up using explosives or crushed into
powder and washed so that the heavier material sinks and is
taken to the bottom, or if it is light mineral, it is mixed with
chemicals so that it will rise to the top where it is taken off
(Department of Education Culture and Employment, Northwest
Territories). Mining companies are required by law to restore
the mined land after all operations are completed. This
includes putting back the top soil and replanting the native
vegetation (Mining Industry, US Bureau of Labor Statistics
2010).

Underground mining requires digging tunnels deep into the

earth near the place where the mineral deposits can be found.
Various types of equipment are used for digging as well as
fortifying tunnels so that they do not cave in. Underground
mining does not require as extensive a reclamation process
as surface mining however, after the full completion of all
mining operations, mine operators and environmental
engineers still must ensure that ground water remains
uncontaminated and that abandoned mines do not collapse.
(Mining Industry, US Bureau of Labor Statistics 2010).

As for crude oil and natural gas, the extraction process is done
by drilling wells from an appropriate surface configuration into
the oil reservoirs. Wells are designed to contain and control all
crude oil flow at all times throughout drilling and producing
operations. The number of wells required is dependent on the
combination of technical and economic factors used to
determine the most likely range of recoverable reserves
relative to a range of potential investment alternatives (World
of Earth Science, 2010)

a.2 Mining sector administration

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The mining sector is publicly administered by the Department
of Environment and Natural Resources (DENR) through its
Mines and Geosciences Bureau (MGB). The overall function
of the DENR related to mining is the conservation,
management, development and proper use of the state’s
mineral resources including those in reservations, watershed
areas, and lands of the public domain. The MGB on the other
hand is directly in charge of the administration and disposition
of mineral lands and mineral resources and undertakes
geological, mining, metallurgical, chemical and other
researches as well as geological and mineral exploration
surveys (Israel, 2010). The Department of Energy (DOE) on
the other hand, is responsible for the development of the
various sources of energy which come from the extraction of
crude oil, natural gas, coal and geothermal reserves.

b. Recent developments during

the past three years

The Philippine mining industry’s output measured in terms of

gross value added for the year 2010, was estimated at P143.4
billion. The sector’s contribution to the economy was roughly
1.7 percent of gross domestic product (GDP). For the same
year, the mining industry also significantly contributed to
foreign currency receipts, with total minerals and mineral
product exports at $1.870 billion. This makes up
approximately 3.7 percent of total exports in the Philippines.

Minerals and mineral product export grew by 27.2 percent in

2010 from the 2009 level of $1.470 billion. Although there
was growth in 2010, these levels are way below those
recorded in 2007 and 2008 which were at $2.605 and $2.498
billion respectively. In 2009, minerals and mineral product
exports contributed 3.9 percent of total exports while non-
metallic mineral manufactures contributed 0.4 percent (Bangko
Sentral ng Pilipinas).

Higher prices for metallic minerals in 2007 encouraged more

production for export, while the global economic slowdown
which began in 2008, contributed to its decline. Rising
prices for copper, gold, silver and nickel in 2010 contributed to
a recovery and consequently faster export growth. Recent
performance covering the 2007 to 2010 period is presented
below.
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Table 1. Investment, Gross Value Added (GVA) and Exports of
Minerals
and Mineral Products in the Mining Industry as of May 2011
Year Total GVA in % Total %
Mining Mining share Exports of share
Investment in in GDP Minerals and in total
in millions billions Mineral exports
of $ of Products in
pesos millions of $
2007 $708.4 P90.5 1.4 $2,605 5.3
2008 604.2 89.5 1.2 2,498 5.2
2009 740.4 97.1 1.3 1,470 3.9
2010 604.4 143.4 1.7 1,870 3.7
Source: Mines and Geosciences Bureau, Bangko Sentral ng Pilipinas

b.1 Large Scale and Small Scale

Metallic Mining Operations

Large scale metallic mining accounted for P42.8 billion in

2009, followed by small scale gold mining at P36.8 billion and
non metallic mining at P26.5 billion. Preliminary estimates for
2010 indicate an increase in the gross production value in
mining to P111.1 billion with a significant expansion in output
for large scale metallic mining at P68.2 billion followed by
small scale gold mining at P42.9 billion. The final estimate for
gross production value in mining for 2010 will be larger than
P111.1 billion once output production updates are obtained
from the non-metallic mining sector (Mines and Geosciences
Bureau). If the trend from 2007 to 2009 is to be followed, the
non-metallic mining sector gross production value should be at
least P20 billion for 2010, raising the total gross production
value in mining to over P130 billion.

Table 2. Gross Production Value in Mining

(as of May 2011)
Year Large Small Scale Non- Total
Scale Gold Mining metallic
Metallic in billions of Mining
Mining in pesos in billions
billions of of pesos
pesos
2007 P49.2 P32.2 P20.8 P102.2
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 2008 29.5 33.9 23.5 86.9
2009 42.8 36.8 26.5 106.1
2010 68.2 42.9 not yet 111.1
available
2011 16.0 13.2 not yet 29.2
1st available
quarter
Source: Mines and Geosciences Bureau, Bangko Sentral ng Pilipinas,
National Statistical
Coordination Board

Large scale mining operations in the Philippines have at least

$50 million worth of investments (or its peso equivalent for a
local firm), and is granted 81,000 hectares of land for mineral
extraction for a period of 25 years per contract, renewable for
another maximum of 25 years. These firms are asked by
government to enter into a Financial or Technical Assistance
Agreement (FTAA) with either a Filipino or foreign corporation
on a 60-40 basis wherein at least 60 percent of the firm is
Filipino owned while 40 percent or less is foreign owned. This
is expected to provide the necessary financial and technical
support required for large scale exploration, development and
utilization of mineral resources (National Economic Research
and Business Assistance Center Industry Report 2011).

Small scale mining on the other hand, relies heavily on

manual labor using implements and methods which do not
involve explosives or heavy mining equipment. Small scale
miners employ physical separation methods in the extraction
of minerals or metals from the ore. Small scale mining takes
place in over 30 provinces and involves as many as 200,000
people. (National Economic Research and Business
Assistance Center Industry Report 2011).

Improving the competitiveness of the Philippine mining sector

will be necessary in order to boost industrial growth because
of its role as a source of raw materials for the metals and
metal products manufacturing sectors and at the same time
enhance its ability to create jobs not just in mining and
quarrying but in both the upstream and downstream industries
linked to it.

b.2 Number of operating metallic mines

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 For the year 2010, there were 28 operating metallic mines in
the country with 3 producing copper (with gold and silver), 1
producing copper (with gold and zinc), 8 producing gold (with
silver), 1 producing metallurgical chromite (ore and
concentrate) and 15 producing nickel. The Philippines
currently has 1 copper smelting plant and 1 nickel processing
plant. There are 13 operating mines that have completed their
expansion projects, 12 mining companies that have finished its
construction and development projects, 4 mines in the
advanced exploration phase and three (3) Philippine Mining
Development Corporation (PMDC) projects. (Bureau of Mines
and Geosciences Report 2011).

Table 3. Number of Operating Metallic Mines

(As of May 6, 2011)
Description 2007 2008 2009 2010
Copper (with 1 2 3 3
gold &silver)
Copper (with 1 1 1 1
gold, silver
and zinc)
Gold (with 7 8 8 8
silver)
Metallurgical 2 1 1 1
Chromite (ore
& concentrate)
Refractory 1 none none none
Chromite
Chemical 1 1 none none
Grade
Chromite
Nickel 11 10 10 15
Total 24 23 23 28
Operating
Metallic
Mines
Source: Mines and Geosciences Bureau

b.3 Number of operating non-metallic mines

For the year 2009, there were 2,358 operating non-metallic

mines. Approximately 1,820 of these were in sand and gravel
production, 15 were in cement and 523 in other non-metallic
mineral operations. The increase in the number of non-
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 metallic mines primarily occurred in 2008 for sand and gravel
operations which had grown from 1,784 in 2007 to 1,820
mines by 2008. The same number was also observed for
sand and gravel mines in 2009. On the other hand, a
significant decline was observed from the other non-metallic
mines which was initially at 626 in 2007 and decreased to 523
by 2008. The same number of mines for this category was
also observed for 2009. The number of cement mines had
remained relatively steady at 16 over the 2007 to 2010 period
(Mines and Geosciences Bureau, 2010). Figures for all
operating non metallic mines from 2007 to 2010 are
presented below

Table 4. Number of Operating Non-Metallic Mines

(As of May 6, 2011)
Description 2007 2008 2009
Sand and 1,784 1,820 1,820
Gravel
Cement 16 16 15
Other Non- 626 523 523
metallics
Total 2,426 2,359 2,358
Operating
Non-
metallic
Mines
Source: Mines and Geosciences Bureau
Note: The actual number of non-metallic mines for 2010
have not been released by the Mines and Geosciences
Bureau

c. Regional Distribution

The Mines and Geosciences Bureau provides a description of

the distribution of mineral resources across the various regions
of the country which includes metallic and non metallic
minerals as well as natural gas and petroleum. Mining
operations in the Philippines are scattered throughout the
archipelago. Metallic mining, which contributes the largest
share of output in the entire mining industry can be found in
seven established mining districts namely: the Benguet
Mineral District, the Zambales Mineral District, the Paracale
Gold District , the Central Visayas Mineral District , the Surigao

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Mineral District , the Palawan Chromite Nickel Area and the
Davao Mineral District ( Mining Journal, Philippines 2009)..

Gold deposits are concentrated in the five recognized gold

mining districts namely: the Baguio gold district, the Paracale
gold district, the Masbate gold district; the Surigao gold
district and the Masara, Davao gold district. Silver deposits
are usually found alongside gold reserves, and the average
silver to gold ratio is 2:1 based on ore assays and the current
production of primary gold mines in the Philippines. Copper
deposits are also widely distributed throughout the country and
most copper deposits contain variable amounts of gold and
silver. Philippine copper mines have been contributing
substantially to gold production over the past several years.
Chromite deposits are found in the eastern and western belts
of the archipelago and in Northern Mindano, while nickel
deposits are also found in the eastern and western margins of
the archipelago and in northeastern Mindanao. Coal deposits
are located in the Cagayan Valley, Polilo-Batan-Catanduanes,
Southern Mindanao, Semirara, Samar Leyte, Negros, Cebu,
Surigao, Agusan-Davao, Cotabato and Zamboanga del Sur.
Natural gas deposits on the other hand are in Palawan
particularly in San Antonio and Malampaya. Petroleum
reserves are also located in Palawan particularly in the areas
of El Nido, Matinloc, North Matinloc, West Linapacan and
Malampaya (Mines and Geosciences Bureau).

In terms of the actual number of operating mines, the

Philippines currently has four (4) medium to large scale gold
mines namely: 1) the Victoria/Teresa Gold Project by Lepanto
Mining Inc.; 2) the Maco Gold Mine by Apex Mining; 3) the
Banahaw Gold Project by PhilSaga Mining and; 4) the
Masbate Gold Project by Filimera/CGA (Bureau of Mines and
Geosciences Report 2011).

There are also three (3) large scale copper mines namely:
1) the Padcal Copper Mine by Philex; 2) the Carmen Copper
Project by Atlas/CCC; and; 3) the Canatual Sulphide Phase
Project by TVI. In addition, there is one (1) major poly-metallic
mine known as the Rapu-Rapu Mine and one (1) major
chromite mine known as the Redondo Project by Krominco
Inc. (Bureau of Mines and Geosciences Report 2011).

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 The country is also a major producer of nickel ore and nickel
concentrate and output primarily comes from 10 medium scale
nickel mines namely: (1) Sta. Cruz Nickel Project in
Zambales; (2) Bering Nickel Project in Quezon, Palawan; (3)
Rio-tuba Nickel Mining Corporation n Bataraga, Palawan; (4)
Cagdianao Mining in Dinagat Province; (5) Hinaluan Mining
Taganaan Project in Surigao del Norte; (6) CTP Construction
and Mining Corporation ACT Project in Surigao del Sur; (7)
Taganito Mining Corporation in Claver Surigao Norte; (9) SR
Metals Inc.- Tubay Nickel Project in Agusann del Norte and
(10) CTP/CWC Carrascal Project in Surigao Sur.

There is also one (1) nickel processing plant in Palawan, one

(1) copper smelting plant in Leyte, sixteen (16) cement plants
and quarries, over a thousand gold and metallic small scale
mines and more than 2,000 non-metallic mines and quarries
(National Economic Research and Business Assistance
Center Industry Report 2011).

c.1 Industry Revenue Shares Across Regions

In terms of revenues from mining and quarrying operations,

the region which generates the largest share at 66.65 percent
is Region IV – B composed of Mindoro, Marinduque, Romblon
and Palawan. This is followed by the combined revenues of
the NCR, CAR and the Ilocos Region at 16.95 percent and
the collective revenues of Region VI – Western Visayas and
Region VII Central Visayas at 10.6 percent. Industry revenue
shares for the rest of the other regions are presented below:

Table 5. Mining and Quarrying Percentage Shares in Revenue

and
Employment Across Regions for the year 2005
Region Mining and Mining and
Quarrying Quarrying
Industry Industry
Revenue Shares Employment
(in percent) Shares
(in percent)
NCR 16.95 50.87
CAR
Region I- Ilocos
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Region III – Central .2588 2.45
Luzon
Region IV - A
CALABARZON
Region IV - B 66.65 6.43
MIMAROPA

Region V - Bicol .1015 1.22

Region VI - Western 10.60 4.37

Visayas
Region VII - Central
Visayas

Region IX - 1.23 12.91

Zamboanga
Peninsula
Region XI - Davao
Region XII -
Soccsksargen

Region XIII – Caraga 4.21 21.75

Total 100.00 100.00
Source: 2005 Annual Survey of Philippine Business and Industry
National
Statistics Office
Additional note: mining and quarrying establishments with an average
total
employment of 20 or more workers were used in the survey

c.2 Large Scale Corporate Mining Operations

The firm with the largest operations in the industry is Philex

mining which produces copper, gold and silver. This is
followed by Japan’s Sumitomo Metal Mining and Norway’s
Intex Resources. Despite the global recession, prospects are
bright with the presence of six new mines established in 2009
namely: the Carmen Copper Project in Cebu, the Masbate
Gold Project, the Palawan HPAL Line 2 Nickel Project, the TVI
Base Metal Project in Zamboanga del Norte, the Philsaga CO-
O Gold Project in Agusan del Norte and the CTP Carrascal
Nickel Project in Surigao del Sur. Sagitarius Mines is
expected to generate the biggest investment in the sector
through its Xtrata Copper Tampakan Project with a cost

17
of approximately $5.2 billion (DENR - Mines and
Geosciences Bureau (MGB) Report, 2009).

For coal production, the Philippine government through the

Department of Energy has been undertaking extensive coal
exploration activities in the Visayas and Mindanao. The
Philippines owns a potential 350 mm tones of recoverable coal
reserves, however, the country’s only significant coal mine is
the Panian mine on Semirara, Caluya and Sibay islands in
western Visayas which had produced a total of 4.8 mm
tonnes of coal in 2009 (The Economist, The Economic
Intelligence Unit Energy Briefing and Forecasts, September 6,
2010). Semirara Mining Corporation is the only large scale
coal producer in the Philippines and is engaged in surface
open cut mining of thermal coal in its Panian mine (MBendi
Information Services, 2005). After natural gas, coal is the
country’s main source of power, accounting for 27 percent of
gross power generation in 2009. Imported coal makes up 75
percent of total coal consumption in the country. Several new
coal fired plants are expected to become operational in the
next ten years and the government will have to make more
use of domestic coal if it is to achieve its target of reducing the
country’s dependence on imports.

For crude oil and natural gas, exploration underneath the

Malampaya gas field in October 2001, revealed an estimated
85 million barrels of oil. Shell Philippines exploration has
committed about $2 billion to the upstream components of the
combined oil and natural gas project currently operating the
joint venture with partners Texaco Philippines and the
Philippine National Oil Company. Offshore exploration
projects have commenced in the Malampaya basin led by Nido
Petroleum, Philippine National Oil Company Exploration
Corporation, Trans Asia Oil, Unocal Corporation., and Philodril
Corporation. The Philippine government continues to
encourage other investors which may be interested in
developing the reserve (MBendi Information Services, 2005).

The extraction and use of geothermal energy is another area

which involves mining operations and after the development of
the first geothermal energy facility in 1971, development
initiatives progressed significantly over the years, with the
current generation from geothermal facilities now reaching
1,978 megawatts. Geothermal energy in the Philippines
18
already provides 27 percent of the country’s total electricity
production in power plants located in the islands of Luzon,
Negros, Mindanao and Leyte.

The Philippines is currently the world’s second largest

geothermal energy producer, next to the United States, and
given its resource potential, experts noted that the country has
the opportunity to take the lead in geothermal energy
production, usage and its continued development (Bayrante,
Lauro F. President, National Geothermal Association of the
Philippines (NGAP) April 10, 2008). Philippine Geothermal
Incorporated is the leading firm in geothermal energy
production in the country.

d. Industry Organizations

Presented below are the industry organizations responsible for

strengthening the linkages between the private sector and the
appropriate government agencies involved in managing the
country’s mineral resources, as well as the professional
organizations which focus on developing the mining and
metallurgical engineering profession.

d.1 Government Agencies

The Mines and Geosciences Bureau (MGB), is the steward

of the country’s mineral resources and is committed to the
promotion of sustainable mineral resources development,
aware of its contribution to national economic growth and
countryside community development. It fully recognizes that
the development of a responsive policy framework in
partnership with stakeholders to govern mineral exploration,
mining and investment decisions and an effective institutional
structure, are fundamental requisites for the sustainable
utilization of the country’s mineral resources.

The Minerals Development Council (MDC) was created in

October 2005, for the purpose of advancing the government
policy of responsible and sustainable development of the
country’s mineral resources. It is empowered to enlist the
assistance of any agency or instrumentality of the government
including government owned or controlled corporations, to
harmonize requirements and procedures that would facilitate
the inflows of investments into the mining industry
19
d.2 Non-Government Organizations (NGOs)

The Chamber of Mines of the Philippines is an association

advancing the interest of mining, quarrying and mineral
processing companies for the efficient exploration,
development and utilization of minerals in consonance with
sound economic, environmental and social policies.

Philippine Society of Mining Engineering serves as a

professional organization for the advancement of the practice
and education of mining engineering. Through its members, it
promotes and actively engages in research writing, publishing
and dissemination of knowledge within the field, and works
and cooperates with government agencies and other
accredited organizations and federations for the promotion,
advancement and protection of the interest of mining
engineers and the mining engineering profession.

Society of Metallurgical Engineers of the Philippines is an

organization which aims to advance the practice and
education of metallurgical engineering and to promote and
actively engage its members on research, writing, publishing
and dissemination of knowledge within the field of
metallurgical engineering.

Monark Foundation Incorporated (MFI) - is an NGO which

offers opportunities to determined less privileged youth by
providing them knowledge, skills and values that would enable
them to become responsible citizens making a difference in
society. The MFI adopts the Dual Training System of
education where scholars acquire sufficient and quality
technical knowledge in school and practical competencies in
the industry.

Geological Society of the Philippines is a global geological

community and the only accredited professional organization
for geology professionals by the Professional Regulations
Commission. Its objectives are to promote the science of
geology and allied earth sciences, foster the spirit of scientific
research, disseminate knowledge concerning the geology of
the Philippines and the regions immediately surrounding it and
protect and maintain a high professional and ethical standard
in the practice of geology among its members.
20
 Philippine Business for the Environment - is an NGO
which assists Philippine business to fulfill its social
responsibility to protect the environment by being an
intermediary between business, government and the
community, encourages cooperation between industry and the
community towards sustainable development and responsible
resource management and establishing reasonable standards
and policies that reflect a balance between the country’
economic goals and environmental concerns. It is an
advocate of sound corporate environmental values and
promotes the search for sufficient and affordable
environmental technology.

II. Industry Sub-sectors

The are seven mining industry sub-sectors which contribute to

total mining output in the Philippines. These mining sub-sector
operations are: 1) gold ore mining; 2) copper ore mining; 3)
other metallic ore mining; 4) crude petroleum and natural
gas; 5) Stone quarrying, clay and sand pits; 5) other non-
metallic mining operations; 6) Chromite ore mining and; 7)
coal mining. Most of the production and employment data
generated from the Annual Survey of Philippine Business and
Industry conducted by the National Statistics Office are taken
primarily from the first five sectors mentioned above. The
sub-sectors of chromite ore mining and coal mining have
production and employment figures which remain suppressed
(or unreleased, upon the firm’s request) for purposes avoiding
disclosure of individual establishment’s data.

The top three mining sub-sectors in terms of output production

were: 1) the extraction and production of crude petroleum and
natural gas at P45.6 billion (or 55.7 percent of the total output
of the mining sector); 2) copper ore mining at P13.8 billion (or
16.9 percent) and other metallic ore mining at P7.3 billion (or
8.9 percent).

Gold ore mining is the fourth largest producer at P2.27 billion,

followed by stone quarrying and clay pits at P1.48 billion and
other non-metallic mining and quarrying at P36.55 million. All
other mining operations (such as chromite, coal and the others
combined) produced P11.366 billion worth of output.

21
 Table 6. Value of Mining Output (for the year 2008)
Industry Description Value of output % distribution of
in billions of output
pesos
Mining and Quarrying P81.892 100
Gold ore mining 2.269 2.8
Copper ore mining 13.829 16.9
Metallic ore mining 7.274 8.9
Extraction and 45.635 55.7
production of crude
petroleum and natural
gas
Stone quarrying, clay 1.483 1.8
and sandpits
Non-metallic mining .036 .044
and quarrying
All other mining 13.9
operations (including 11.366
chromite ore mining,
coal mining and others)
Source: 2008 Annual Survey of Philippine Business and Industry
National Statistics Office
s: suppressed data to avoid disclosure of individual establishment’s
data

a. Type of Establishments

Based on the Annual Survey of Philippine Business and

Industry for 2009, a total of 100 mining and quarrying
establishments were surveyed and approximately 35 percent
(or 35 firms) of the total establishments in the mining and
quarrying sector were involved in stone quarrying, clay and
sandpit operations. Roughly 18 percent (or 18 firms) were in
other non-metallic mining activities, 17 percent (or 17 firms)
were in gold ore mining, 13 percent were involved in other
metallic ore (13 firms), 9 percent were in copper ore (9 firms),
4 percent were in crude petroleum and natural gas (4 firms),
and 4 percent for all other mining activities (4 firms).
Presented below are the actual number of establishments,
and their percentage distribution across all the sub-sectors in
the mining and quarrying industry.

22
Table 7. Number of Establishments and Employment (for the
year 2009)
Industry Number of % Total %
Descript Establishm distributio employ distributi
ion ents n of ment on of
establishm employ
ents ment
Mining 100 100 24,113 100
and
Quarryin
g
Gold ore 17 17 7,912 32.81
mining
Copper 9 9 7,454 30.91
ore
mining
Chromite s s s s
ore
mining
Metallic 13 13 2,997 12.43
ore
mining
Coal s s s s
mining
Extractio 4 4 453 1.88
n and
productio
n of
crude
petroleu
m and
natural
gas
Stone 35 35 1,437 5.96
quarrying
, clay and
sandpits
Non- 18 18 952 3.95
metallic
mining
and
quarrying
Source: 2009 Annual Survey of Philippine Business and Industry
National Statistics Office
s: suppressed data to avoid disclosure of individual establishment’s
data

23
 b. Distribution of Employment

The above mentioned table also provides the actual

employment for the establishments under each sub-sector in
the mining and quarrying industry. For the year 2009, the
establishments which had provided the largest contribution to
total employment were under the sub-sectors of gold ore
mining, copper ore mining, and other metallic ore mining at
32.81 percent, 30.91 percent and 12.43 percent respectively.
The fourth largest contributor to employment were stone
quarrying, clay and sandpit establishments at 5.96 percent,
followed by non-metallic mining and quarrying operations at
3.95 percent and lastly by crude petroleum and natural gas
establishments at 1.88 percent.

III. Working Conditions

a. Nature of Employment

General conditions for hiring workers in the mining industry are

based on the employment provisions of the Philippine Mining
Act of 1995. The act requires that a contractor shall give
preference to Filipino citizens in all types of mining
employment within the country as long as these citizens are
qualified to perform the corresponding work with reasonable
efficiency and without hazard to the safety of the operations.

In addition to this, mining contractors shall not be hindered

from hiring employees of their choice, subject to the
provisions of the Commonwealth Act No. 613 as amended for
technical and specialized work which in the contractor’s
judgment and with the approval of the Department of Labor
and Employment, requires highly specialized training or long
experience in exploration, development or utilization of mineral
resources.

Hiring of foreigners in this situation is subject to the condition

that there shall be no case where each employment exceeds
five (5) years or the payback period as represented in the
original project study, whichever is longer, and that each
foreigner, employed as manager, vice president for operations
or in an equivalent managerial position in charge of mining,
24
milling, quarrying or drilling operation shall: 1) present
evidence of his qualification and work experience; or 2) shall
pass the appropriate government licensure examination; or 3)
in special cases, may be permitted to work by the Department
of Labor and Employment for a period not exceeding one (1)
year, provided however that, the reciprocal privileges are
extended to Filipino nationals in the country of domicile, and
that the Department of Labor and Employment may grant
waivers or exemptions (Republic Act No. 7942).

No persons under sixteen (16) years or age shall be employed

in any phase of mining operations and no person under
eighteen (18) years of age shall be employed in underground
mining (Republic Act No. 7942).

The main provision for mine supervision requires that all

mining and quarrying operations that employ more than fifty
(50) workers shall have at least one (1) licensed mining
engineer with at least five (5) years of experience in mining
operations and one (1) registered foreman.

Work in the mining industry requires competence in

engineering jobs and skills as applied to mining operations.
Preference is given to applicants with actual work experience
in mining operations, but new graduates are also hired,
subject to the passing of the licensure/board examination and
their willingness to undergo a training program required by the
firms (Halcon, 2005 ).

Full time employment, which is granted on a contractual

basis usually applies to occupations which require a university
degree (for professional jobs such as geologists, engineers
and general managers), a college diploma or technology
program (for semi professional and highly technical jobs such
as electrical foreman, mill foreman and mine foreman ) and a
technical college diploma (for technical jobs such as mining
technician, engineering technician and environmental
technician) (Department of Education, Culture and
Employment Northwest Territories) . Full time employment on
a contractual basis may also be granted for skilled jobs( which
require the ability to read and have previous mining
experience such as drillers, blast hole drillers and blasters ).
Regular employment status, or permanent positions may be
granted to professional, semi professional and highly technical
25
 workers depending on the firm’s needs, the extent of
exploration activities, the yield from existing mining sites, the
identification of new sources of mineral reserves and the long
term financial viability of the company’s mining operations.

Part-time employment granted on a contractual, or in extreme

cases a casual basis generally applies to occupations which
require lesser educational attainment (completion of primary or
secondary education) with or without training and with or
without work experience. This refers to laborers, helpers,
miners’ and drillers’ assistants and equipment operators.

The extent of the proliferation of contractual and seasonal

employment should be studied and thoroughly examined by
the DOLE because of its major implications on worker welfare
and the ability of the industry to attract skilled manpower.
Contractual and seasonal employees have constituted a
bigger portion of company employees who are not entitled to
the conventional cash and non-cash benefits which regular
employees avail of. Labor unions are prevalent in the mining
industry, and regular employees benefit from collective
bargaining agreements (Halcon, 2005) However,
contractualization has been a way by which firms have been
able to reduce labor union membership and cut down on labor
cost because of the non payment of other benefits which are
only given to regular employees (Halcon, 2005).

b. Occupations in the Industry

A list of occupations in the mining industry is presented below

alongside their respective job descriptions as well as the
educational attainment required.

b.1 Table 8. Professional (jobs that require a university

degree)
Industry/ Job Description
Occupation
Geologists Conducts exploration activities in search of
mineral ore reserves and provides advice on
whether to mine and where ore deposits are
likely to be found
Geodetic Performs engineering duties in planning
Engineers designing and overseeing construction and
maintenance of building structures and
26
 facilities in mining sites
Mining Determines the best way to extract mineral
Engineers and ore out of the ground, and designs systems for
Metallurgists the entire mining operation
Metallurgists Metallurgists are involved in the extraction of
metals from ores and study metal corrosion
and fatigue, monitor the behavior of metals
under stress and temperature changes, shape
and join metals and select the best metals for
use

b.2 Table 9. Semi-Professional (jobs that require a

college diploma or a technology program
and supplemented with extensive work experience )
Industry/ Job Description
Occupation
Production Supervisors and Ensures that equipment is well
General Foremen maintained and in good working
condition, supervises mine workers,
makes daily work plans and trains
workers. Sets safety rules and
ensures healthy working conditions
Warehouse Supervisor Keeps the warehouse in order,
maintains records of materials
stocked

b.3 Table 10. Technical Jobs (jobs that require the

completion of a technical program)
Mining and Metallurgical Helps mining and metallurgical
Engineering Technicians engineers with underground
surveys, assists in formulating plans
on where to mine, provides
estimates on how much mineral
reserves remain, assists in the
drawings of machines, buildings,
and systems, and helps keep
systems functioning
Environmental Technician Makes sure environmental rules are
followed

b.4 Table 11. Skilled Jobs (functionally literate with previous

mining experience)

27
Miners Extracts mineral ore through
blasting, using pick or by operating
cutting machines. Operates
mounted or un-mounted power drill
to bore,
installs timbering, roof bolts or cribs
to support walls and roof and lays
tracks to accommodate mine cars or
track mounted equipment
Miners and Quarry Workers Extracts building and monumental
stone such as marble and granite,
clay, sand and gravel using heavy
equipment and machinery, or
through more labor intensive
methods
Stone Processing and Transforms the extracted stone into
Plant Operators more directly usable materials and
facilitates the continuing production
of output for both processing and
distribution
Well Drillers, Borers and Assemble and operate drilling
Related Workers machinery and related equipment to
sink wells, extract ore, liquids and
gases
Shotfirers and Blasters Decides how many holes and how
deep to drill, pack explosives into
holes, makes sure everything is
safe before blasting, drills holes into
rock for blasting
Mining Plant Operators Operates equipment and machinery
that loads extracted mineral ore for
transfer to processing plants or
distribution facilities
Mineral Ore Processing Operates equipment and machinery
Plant Operators which transforms mineral ore into
more immediately usable materials
for industry

b.5 Table 12. Office Workers (jobs which require the

completion of secondary education,
training and experience)
Accounting and Keeps financial records
Bookkeeping Clerks Works in payroll and costing
Mine Clerk Keeps mine records, time sheets,
28
 etc.
Does word processing, records
mail, files, makes appointments

c. Working Environment

The working environment in the mining industry varies

depending on the type of occupations required for a particular
function within the company or firm. Scientists and
technicians in the field of metallurgical engineering for
example will spend more time in laboratories examining and
testing the quality of minerals, and doing research on mineral
processing and materials development. Executives,
administrators, support staff and clerical workers are expected
to maintain regular working hours in office buildings.

Engineers and managers of mine operations will be in the field

or mine site for a longer period of time while reporting
occasionally to head office executives to provide updates and
recent developments on output production and the on going
progress of extraction activities in recently explored mining
sites. Geologists are expected to spend most of the time in
the field conducting exploration activities.

Mining and quarrying workers, responsible for extracting

minerals from the earth are expected to be prepared for
rugged outdoor conditions, including all kinds of weather, are
required to adjust to dark, damp, hot, noisy underground
mines and tunnels, and must have the physical strength and
stamina for lifting heavy objects and for climbing and stooping
in tunnels with tools covered in dirt and oil. Miners are
expected to work in eight to twelve hour shifts usually around
large and noisy equipment. Heavy machine operators working
inside enclosed equipment are needed at the mine site during
mineral extraction and processing activities.

Halcon (2005), explains that although age is an important

consideration, physical fitness is essential, particularly when it
comes to adjusting to the physical demands of actual mining
operations. Gender does not pose problems, although most
mining companies prefer males over females in view of the
physical demands of the job.

29
Under the training and development provision of the Philippine
Mining Act of 1995, contractors are required to maintain an
effective program of manpower training and development
throughout the term of the mineral agreement and shall
encourage and train Filipinos to participate in all aspects of
mining operations including the management thereof. For
highly technical and specialized mining operations, the
contractor, may subject to the necessary government
clearances, employ qualified foreigners.

Large scale mining firms have provided on the job training to

its employees in various aspects of mining, milling, mine
safety, occupational health, environmental protection and
productivity improvement. Supervisory and managerial level
employees are sent to training and mine visits abroad. Apart
from this, companies also provide in-house training for human
resource development and skills enhancement. Training
programs are conducted in close collaboration with
government agencies such as the Technical Skills
Development Authority (TESDA), (Hubo, 2004).

d. Working Hours

Full time employment requires working in between eight to

twelve hours shifts in mining operations. Administration from
the executive to managerial up to the staff functions are
generally required to maintain a forty hour work week as a
major requirement under a full time employment contract.
Based on the data obtained from the labor force survey from
2001 to 2009, the average number of working hours ranged
from a minimum of 38.7 hours per week in 2009 to a
maximum of 42.7 hours per week during the year 2004. It is
interesting to note that the average weekly hours worked
dropped in 2006 (39.3 hours) and 2009 (38.7 hours) which
may be attributed to a decline in mining operations. The
production of gold, copper and nickel reached their peak in
2007 and decreased in 2008 (Israel, 2010). In addition, the
drop in total paid up investments and local investments after
2005 and 2007 and the decrease in foreign equity investments
after 2007 as well as the decline in the number of mining
establishments in 2006 (Israel, 2010), may have contributed
to the retrenchment of mining workers and the use of more
part-time contractual employees as a response to the slow
down in mining production and investment. Granting part-time
30
contracts to workers will have the effect of reducing the
average weekly hours worked and at the same time cut down
on labor cost since firms will not be obliged to grant other
benefits which is normally associated with full time
employment

The average daily basic pay for mining and quarrying workers
had generally increased from the year 2004 (at P185.64 per
day) to 2010 (at P217.62 per day). Upward adjustments in
minimum wages by the regional wage boards to cover the
rising cost of living over time as well as rising demand for
mining workers induced by investment growth ( are factors
responsible for the increase in average daily basic pay. The
decline in average daily basic pay from 2002 to 2004 on the
other hand may be attributed to the reduced demand for
mining workers caused by the decline in the number of
establishments which began in the year 2000 (with 376
establishments) up to 2003 (with 187 establishments)
(Annual Survey of Establishments (ASE), Annual Survey of
Philippine Business and Industry (ASPBI), Census of
Philippine Business and Industry (CPBI), Industry Trade
Statistics Department (NSO)). Total paid up investments, and
in particular, local investments had declined from 1999 to
2003 (from over P3.6 billion to P81.24 million over the four
year period) (Securities and Exchange Commission (SEC))

e. Fringe Benefits

Because of the occupational hazards that exist in mining

operations, employed workers with full-time contracts are
being paid at least 20 percent to 30 percent more than the
legally prescribed minimum wage in the country (Hubo, Lewis
and Warner, 2004). Mining engineers, geologists,
metallurgists and other related professions employed in the
mining industry receive relatively higher compensation in view
of the dangers associated with the performance of their jobs.
In addition, a majority of the highly skilled well trained and
experienced professionals employed on a full time basis
receive non-cash benefits such as housing, electricity and
water, healthcare and employee stock options (Halcon,
2005,).

In particular, full time employees are extended both cash and

non-cash fringe benefits equivalent to at least 80 percent of
31
their basic salary. Cash benefits include the following: 1)
overtime pay/premium; 2) night shift differential; 3) rest
day work pay; 4) holiday pay/ premium; 5) regular cost
of living allowance; 6) rest day allowance; 7) 13th month
pay; 8) Canao bonus (IP fiesta); 9) annual vacation
leave pay; 10) annual sick leave pay; 11) medical
assistance; 12) miners bonuses; 13) meterage bonus;
14) core bonus; 15) timbering bonus; 16) polygraph
bonus; 17) hi-packing/ bouldering bonus (Hubo, Lewis
and Warner, 2004).

On the other hand, the non-cash benefits include: 1) free

housing; 2) free domestic water services; 3) free power
and lighting; 4) sanitation and fire protection; 5)
medical and dental services; 6) police protection; 7)
recreation and facilities; 8) church expenses; 9) free
education of children (public schools constructed and
located and maintained by the company from primary to
secondary levels); 10) service buses; 11) safety
expenses; 12) company share to the Social Security
System, Pag-Ibig Fund and Union Welfare Fund; 13)
raincoat supply; 14) rubber boots supply; 15) library
expenses and; 16) a rice subsidy (Hubo, Lewis and Warner,
2004).

Most mining workers are unionized with the rank and file
employees affiliated with the National Mines and Allied
Workers Union-MIF, while supervisory or management
personnel are members of the Associated Professional,
Supervisory, Office and Technical Employees Union of the
Trade Union of the Philippines (Hubo, Lewis and Warner,
2002).

f. Occupational Health Hazards

Workers in mining operations are always exposed to major

occupational hazards and this is the primary reason why
compensation is relatively higher as compared to other
industries. The most common cccupational health hazards
posed by mining to workers are exposure to intense heat,
poor ventilation, vibration, dust, fumes, repetitive stress injury,
intense noise, manual handling (such as lifting) of heavy
machinery and equipment and biological and chemical
hazards. Due to the nature of underground mining, workers
32
on the site are constantly exposed to the dangers of cave-in,
mine fire, explosion, exposure to harmful gases and intense
heat while hydration is very limited. Miners usually have fluid
and salt deficiency due to constant sweating, increased stress
on the heart, heat stroke, opacity of the lens, and reduced
fertility due to high heat. (Institute for Occupational Health
and Safety Development, 2006).

Poor ventilation robs the body of needed oxygen causing the

brain to malfunction and leads to many deaths in underground
operations. Vibration causes permanent damage to bones
and vibration syndrome or “dead finger syndrome” which can
lead to gangrene in the hands and fingers. It can also cause
digestive problems due to the constant shaking of the internal
organs, heart problems and disruption of the nervous system
(Institute for Occupational Health and Safety Development,
2006).

Mines expose workers to different types of airborne

particulates making them vulnerable to systemic toxic effects
due to the absorption of lead, manganese, cadmium, zinc and
other toxic material. Fumes are emitted by chemicals being
used, or by the machines being employed during mining
operations. Coupled with poor ventilation, this can trigger
accidents and cause death to workers. Noise or irritating and
hazardous sound can cause hearing impairment and/or disrupt
body functions like blood circulation and hormone imbalance.
Deafness and hearing loss can become irreversible and other
non-auditory effects are increased blood pressure and peptic
ulcer due to increased gastrointestinal motility (Institute for
Occupational Health and Safety Development, 2006).

Because most mines in the Philippines extract gold, the use of

sodium cyanide for leaching gold from finely ground ore is
frequent. The use of liquid mercury to create gold-amalgam is
also wide spread. Cyanide blocks the transfer of oxygen from
the blood to the body tissues. Signs of acute poisoning
include rapid breathing, gasping, tremors, convulsions and
death. Effects of sub-lethal poisoning include headache,
dizziness and thyroid enlargement (Institute for Occupational
Health and Safety Development, 2006).

This is the main reason why adequate health benefits are

necessary alongside very strict safety regulations in order to
33
protect the welfare of workers. Most large scale mining
companies today have integrated health and safety policies
into work procedures to lessen occupational accidents and
diseases. Personal protective equipment are provided to the
workforce including trainings and seminars on safety and
health. Companies have also created a safety department
which constantly monitors and implement safety programs in
coordination with appropriate agencies like the Philippine
Mineral Safety Environment Association (PMSEA), the Safety
Organization of the Philippines, the Department of
Environment and Natural Resources (DENR), the Bureau of
Working Conditions, the Department of Labor (DOLE)
Regional Offices, the Occupational Safety and Health Center,
the Bureau of Fire Protection-Department of the Interior and
Local Government, the Department of Health (DOH) and the
workers unions among others (Hubo, Lewis and Warner,
2004)

IV. Total Mining and Quarrying

Employment in the Philippines

Between 2003 and 2008, direct employment in the mining

industry increased from 104,000 (0.3 percent of the national
workforce) to 158,000 (0.5 percent), or 54,000 mining jobs
generated in five years (Ramos, 2010 ). The contribution of
the mining and quarrying sector to total employment has
remained stable at 0.5 percent during the last three years.
Based on the estimates from the Department of Labor and
Employment (DOLE), the 158,000 workers employed in this
sector in 2008, had grown to 169,000 in 2009 and 197,000 by
2010. These figures include workers directly employed by
the mining and quarrying firms which are all involved in the
four stages namely: 1) exploration; 2) development and
construction; 3) utilization and commercial operation and ; 4)
decommissioning, final mining stage and rehabilitation. In
addition, the employment estimates also include those
involved in the processing of mineral raw materials and other
downstream activities. Government estimates that for every
job generated in the mining industry, roughly four to six more
jobs are indirectly generated in the upstream and downstream
sectors. (DENR - Mines and Geosciences Bureau (MGB)
Report, 2009).

34
 Table 13. Employment in Mining and Quarrying as of May
2011
Year Employment in Mining % share in total
and Quarrying employment
2003 104,000 0.4
2007 149,000 0.4
2008 158,000 0.5
2009 169,000 0.5
2010 197,000 0.5
Source: Department of Labor and Employment

The demand for manpower in the metallic mining industry

depends on the number of active exploration activities being
undertaken all over the country, the expansion of operations
by existing firms, the planned operation of new enterprises as
well as the re-operation of companies that had closed down
during the previous decade. In the non-metallic sector, the
performance of the construction industry serves as a leading
indicator because of the demand for cement, gravel, sand,
limestone and other mineral products used for residential and
non-residential construction (Halcon, 2005)

Based on the Annual Survey of Philippine Business and

Industry for 2009, 30.91 percent of the mining and quarrying
workforce is employed in copper ore mining, 32.81 percent
are in gold ore mining, and 12.43 percent in other metallic ore
mining. Approximately 5.96 percent were in the stone
quarrying, clay and sand pit operations, 3.95 percent were in
other non-metallic mining, 1.88 percent in the crude petroleum
and natural gas establishments and 12.06 percent were in
all other mining activities.

Table 14. Percentage Distribution of

Employment (for the year 2009)
Industry Description % distribution of employment
Mining and Quarrying 100
Gold ore mining 32.81
Copper ore mining 30.91
Chromite ore mining s
Metallic ore mining 12.43
Coal mining s
Extraction and production of 1.88

35
 crude petroleum and natural
gas
Stone quarrying, clay and 5.96
sandpits
Non-metallic mining and 3.95
quarrying
Source: 2009 Annual Survey of Philippine Business and Industry
National Statistics Office
s: suppressed data to avoid disclosure of individual establishment’s
data

V. Average Monthly Wage Rates for Industry Occupations

a. Average monthly wage rates for occupations

in the metallic ore mining industry

For July 2008, the highest average monthly wage rate for
occupations in the metallic ore mining sector was for
geologists at P26,795. This was followed by mining engineers
and metallurgists at P23,965, geodetic engineers at P22,931,
and production supervisors and general foremen at P19,716.
Mining and metallurgical engineering technicians received
P16,372, miners were paid P12,265, shot firers and blasters at
P11,965 , mining plant operators at P11,748 and mineral ore
processing plant operators at P11,086. Accounting and
bookkeeping clerks received P10,904 while unskilled workers
excluding janitors, messengers and freight handlers were paid
P6,407. Overall the average monthly wage rates had
increased from 2006 to 2008 for a majority of the occupations
except for production supervisors and general foremen,
accounting and bookkeeping clerks and mineral ore
processing plant operators.

By August 2010, higher average monthly wage rates were

recorded for mining engineers and metallurgists at P34,255
followed by geologists at P33,514, production supervisors and
general foremen at P24,043 and mining and metallurgical
engineering technicians at P17,839.

A comparison of the August 2006 July 2008 and August 2010

average monthly wage rates for occupations under the
metallic ore mining sector are provided below:

Table 15. Average Monthly Wage Rates of Time-Rate Workers

on
36
 Full-Time Basis in the Metallic Ore Mining Industry
1994 PSIC Industry/ Average Average Average
as Occupation Monthly Monthly Monthly
amended/ Wage Wage Wage
PSOC Rate Rate Rate
2002 August July August
update 2006 2008 2010
C10 Metallic Ore
Mining
1430 Production 19,983 19,716 24,043
Supervisors
and General
Foremen
2114 Geologists a 26,795 33,514
2156 Geodetic 20,890 22,931 16,346
Engineers
2159 Mining 22,199 23,965 34,255
Engineers
and
Metallurgists
3117 Mining and 11,942 16,372 17,839
Metallurgical
Engineering
Technicians
4121 Accounting 13,582 10,904 13,841
and
Bookkeepin
g Clerks
7111 Miners 11,478 12,265 11,500
7112 Shotfirers a 11,965 8,418
and Blasters
8111 Mining Plant 10,630 11,748 7,115
Operators
8112 Mineral Ore 12,406 11,086 11,344
Processing
Plant
Operators
9400 Unskilled 5,556 6,407 10,235
Workers
Except
Janitors,
Messengers
and Freight

37
 Handlers
Source: Bureau of Labor and Employment Statistics August 2006,
July 2008 and August 2010
a: no report

b. Average monthly wage rates for occupations

in the non-metallic mining and quarrying industry

The highest average monthly wage rate for the non-metallic

mining and quarrying sector for July 2008 is paid to
production supervisors and general foremen at P32,588
followed closely by mining engineers at P31,349. The third
highest paid occupation is for geodetic engineers at P22,931
followed by geologists at P20,000, mining plant operators at
P16,490, accounting and bookkeeping clerks at P13,078 ,
miners and quarry workers at P12,313 and well drillers, borers
and related workers at P10,433. The last two occupations
with the lowest average monthly wage rates are stone
processing plant operators who are paid P9,940 and
unskilled workers excluding janitors, messengers and freight
handlers at P7,053. No report was given for the average
monthly wage rate for mining engineering technicians in July
2008, but based on the August 2006 estimates, workers in
this occupation received P7,303 per month.

For August 2010, the average monthly wage rates have

substantially increased particularly for geologists at P64,889,
followed by mining engineers at P55,638, production
supervisors and general foremen at P36,133, well drillers and
borers and related workers at P20,275 and mining engineering
technicians at P12,896.

Estimated monthly wage rates for all occupations under the

non-metallic mining and quarrying industry for 2006, 2008
and 2010 are presented below on the following table :

Table 16. Average Monthly Wage Rates of Time-Rate Workers

on
Full-Time Basis in the Non-Metallic Mining and Quarrying
Industry
1994 PSIC Industry/ Average Average Average
as Occupation Monthly Monthly Monthly
38
amended/ Wage Wage Wage
PSOC Rate Rate Rate
2002 August July August
update 2006 2008 2010
C11 Non-Metallic
Mining and
Quarrying
1430 Production P23,941 32,588 36,133
Supervisors
and General
Foremen
2114 Geologists a 20,000 64,889
2156 Geodetic 20,890 22,931 16,346
Engineers
2159 Mining 24,583 31,349 55,638
Engineers
3117 Mining 7,303 a 12,896
Engineering
Technicians
4121 Accounting 9,505 13,078 12,189
and
Bookkeeping
Clerks
7111 Miners and 6,243 12,313 8,515
Quarry
Workers
8111 Mining Plant 7,533 16,490 10,288
Operators
8112 Stone 10,609 9,940 9,707
Processing
Plant
Operators
8113 Well Drillers 9,871 10,433 20,275
and Borers
and Related
Workers
9400 Unskilled 7,022 7,053 6,380
Workers
Except
Janitors,
Messengers
and Freight
Handlers
Source: Bureau of Labor and Employment Statistics
39
 a: no report
** Estimates for 2010 were based on the annual average increase of 5.6
percent in minimum wage rates.

For both the metallic mining and non-metallic mining sectors,

average monthly wage rates for 2008 are significantly higher
than the minimum wage in the National Capital Region (NCR).
Based on the 2008 NCR minimum wage rate of P362 per day,
or roughly P7,240 per month (based on a five day work week
at four weeks per month), almost all occupations in both sub-
sectors of the mining industry are substantially higher than the
minimum wage. The average monthly wage rate of production
supervisors and general foremen are 4.5 times higher than the
minimum wage, while miners and quarry workers are larger by
1.7 times as much. The only occupations which have average
monthly wage rates below the minimum wage is for unskilled
workers excluding janitors, messengers and freight handlers,
which are lower by a minimum of 3 percent to a maximum of
11 percent.

VI. Educational Requirements, Training

and Advancement

a. Mining Industry Professionals

Mining industry professionals are those who have finished a

four year course and are required to take a board exam given
by the Professional Regulation Commission. This includes: 1)
Mining Engineers; 2) Metallurgical Engineers; 3) Geodetic
Engineers and; 4) Geologists.

Professionals coming from these four mining programs are

currently in short supply in the Philippines. Mining firms have
been experiencing difficulty in the recruitment of graduates
particularly those with adequate work experience. Schools
offering training in these academic disciplines have decreased.
Among the proprietary type of schools, the academic
departments offering these disciplines have become cost
centers with not enough enrollees. Very often, proprietary
schools offer these courses out of the stockholders’ sense of
social responsibility to maintain a pool of mining professionals
in the country.

40
The shortage of mining professionals has affected both the
private and public sectors. Optimism bolstered by the
Supreme Court decision allowing foreign ownership in the
industry has fueled the increase in mining investments. The
Mines and Geosciences Bureau has been hit by an exodus of
geologists to private companies offering higher pay. Some 70
positions have become vacant during the last few years.
(Ramos, H. Business World, 2008).

At present, there are not enough mining engineering

graduates being produced by the remaining schools offering
the programs. Executives from the large scale mining
corporations in the Philippines revealed that “poaching” of
mining professionals was rampant in the industry (Martinez,
2011 and De Jesus, 2011). Officials of licensed overseas labor
recruiters also attested to the difficulties of recruiting mining
professionals. They were unable to provide their clients abroad
with mining engineers due to the lack of qualified applicants
who had the experience required by the principal (Lavado,
2011).

a.1 Mining Engineers

The Philippine Statistical Occupational Code (PSOC)

describes mining engineers and metallurgists as “workers that
conduct research and training as well as develop and maintain
commercial scale methods of extracting metals from their ores
or minerals, water, oil or gas from the earth. They also develop
new alloys, ceramics and other materials as well as study and
provide advice on the technological aspects of particular
materials products or processes. (PSOC 1994)

There are schools in the Philippines offering college courses to

produce these professionals but there are very few enrollees
and some of these programs have closed down due to the lack
of students.

There are eight schools in the Philippines which offer a

Bachelor’s degree in Mining Engineering. Three of these
institutions are in Metro Manila, namely: the University of the
Philippines; Adamson University and; the Mapua Institute of
Technology. The Mapua Institute has ceased offering its
mining engineering course, but has developed engineering
courses related to energy development and management.
41
Most of the faculty teaching courses in the field come from the
Mines and Geo-sciences Bureau as well as the private large
scale mining corporations (Halcon, 2005).

The remaining five institutions are in Baguio, Cebu, Negros,

Butuan and Davao City. Two of these schools offer a
Bachelors degree in Geothermal Engineering namely: the
Negros Oriental State University and the Bicol University in
Legazi, Albay. Both of these schools are near existing
geothermal plants, Negros has its Palimpinon Geothermal
Plant and Bicol has its Bacon Manito Geothermal Plant in
Albay.

Mining professionals perform a very important role in the

extraction of geothermal energy through the drilling of wells.
Along with the use of heavy equipment and machinery,
natural pressure and the hot water coming from the
geothermal wells is converted into hot steam, channeled into
pipelines and brought to power plants where steam is used to
turn turbines and generate electricity.

Geothermal Engineering is a promising field to pursue

considering that there is an increasing number of geothermal
installations in the Philippines today. The Philippines is the
largest consumer of geothermal energy in Asia and is the
world's second-largest producer, behind the United States.
The Philippines has almost 2,000 MW of geothermal capacity
linked to regional grids. Geothermal energy represents about
27% of the country's total electricity production and has the
potential to produce at least another 600 MW (Industrial
Information Resources, 2010).

The total number of graduates in the Mining Engineering field

has declined during the last ten years. There were only a total
of 142 graduates of the program from 1999 to 2009 and the
number of Board Examinees and passers have also
decreased during the same period.

A total of 193 passed the Board Exams for Mining

Engineering from 1999 to 2008. An average of 19 examinees
passed the exam every year, one of the fields with smallest
number among all professions. It is still dominated largely by
males as in the other professions related to the mining
industry.
42
The shortage of mining engineers has been complicated
further by their search for employment outside of the
Philippines. From 1999 to 2008, a total of 25 mining
engineers left the country to find work overseas (Philippine
Overseas Employment Administration (POEA) statistics,
2009). Many of the graduates found work with better
compensation in Saudi Arabia, Australia Brazil, India, Laos,
New Zealand, Quatar, Mozambique, Malaysia, Papua New
Guinea, Tanzania and the United Arab Emirates.

a.2 Metallurgical Engineers

Mining companies in the Philippines have also experienced

difficulties in recruiting graduates from the Metallurgical
Engineering field. Currently, there are five schools offering
metallurgical engineering as a discipline but there are only
two institutions which offer this program as a five year
engineering course namely: the University of the Philippines
in Diliman and the Mindanao State University. The University
of the Philippines in Diliman is the only institution offering a
masters program in Metallurgical Engineering.

Metallurgical engineers are needed not only in mining

operations but also in downstream industries such as in the
production of metals and in manufacturing. Over the last ten
years, a total of 528 students graduated from both the
bachelors and masters programs. A total of 217 graduates
passed the Board Exam for metallurgical engineering during
the period from 1999 to 2008. The profession was dominated
by the males who comprised more than half of those who
passed the exam. In 2009, there were 30 graduates in the
bachelor’s program. On the other hand, 22 students
completed the masters program in 2008 and there were 21
students who passed the Board Exam during the same year.

Migration has also affected the supply of metallurgical

engineers in the country. Over the last ten years, a total of
119 metallurgical engineers or more than half the number of
the Board Passers left the county based on statistics from the
Philippine Overseas Employment Administration. More than
half were employed in Saudi Arabia and the rest were hired
by firms located in Quatar, New Caledonia, United Arab
Emirates, Nigeria and Algeria to name a few.
43
a.3 Geologists

Most of the mining firms in the Philippines are also

experiencing difficulty in hiring geologists. Aside from the
mining and quarrying industry, graduates in this field are also
needed by the construction and real estate development
sectors.

Geologists and geophysicists are described by the the

Philippine Occupational Statistics Code (PSOC) as “workers
which conduct research, improve or develop concept, theories
and operational methods or apply scientific knowledge relating
to geology and geophysics in such fields as oil, gas, and
mineral exploration, water conservation, civil engineering,
telecommunications and navigation.” (PSOC 1992)

At present, the schools offering geology programs in the

country are namely: The University of the Philippines,
Adamson University and the Mapua Institute of Technology
(all located in the National Capital Region), Partido State
University in Camarines Sur, Negros Oriental State University
in the Visayas and the University of South Eastern Philippines
in Mindanao.

In addition, the University of the Philippines has a doctoral

program, while the Mapua Institute of Technology offers a
masters program in Geo-informatics. Over the last ten years,
there were 432 graduates in the course at the bachelors
and masters level combined. Twenty two (22) of these were
from the graduate program. During the past ten years, an
average of 30 students pass the board exams. However, this
number is perceived to be insufficient given the recruitment
difficulties of mining firms.

a.4 Geodetic Engineers

Geodetic engineering graduates are not only needed by the

mining industry but recruitment is also being undertaken by
firms in the construction and real estate development sectors.
The shortage of professionals in this field was also
44
exacerbated by the employment of these professionals
overseas primarily in the Middle East.

Geodetic engineers provide firms with surveying information

and mapping services required to conduct geodetic,
topographic, hydrographic and remote sensing surveys. They
provide guidance in the setting of a geodetic control in remote
areas and prepare topographic and seismic survey maps for
geophysical operations. They are also recruited by firms to
provide these services in sea mining and oil extraction
operations.

Currently, there are forty one (41) higher education

institutions which offer Geodetic Engineering. These schools
are scattered throughout Luzon, Visayas and Mindanao, but
none of them offer masters programs. The number of
enrollees and graduates have declined in recent years From
a total enrollment of 2,817 students in 1998, the number had
declined to 1,423 students by 2009. There was an average of
348 graduates every year from the bachelors program during
the 1997 to 2009 period. There were 135 passers in the
Board Exam for this profession in 2008.

Over the same twelve year period, there were 3,886

graduates which were employed overseas, hired by firms in
the Middle East mostly in Saudi Arabia where many
construction projects were being completed.

b. Recommendations for bridging programs

to address the shortages

The schools which are currently offering programs producing

graduates whose skills are badly needed by the mining
industry may consider the alternative of offering “bridging
courses” to enable graduates of other programs in engineering
to take subjects that can be credited as course work for a
second degree in either mining engineering, metallurgy,
geology or geodetic engineering

Civil engineering is closely related to mining and geodetic

engineering. Four semesters and two summer terms may be
enough for engineers to take
an additional program in geodetic engineering or mining
engineering and prepare for the Board Exam. Instead of a
45
four year program to prepare a student to be a mining
engineer, the period could be shortened to two years.

In addition, there are common subjects in Materials

Engineering and Metallurgical Engineering programs.
Bridging courses may also be offered to train graduates of
Materials Engineering to be Metallurgical Engineers and
prepare them for work and the Board Exams. There are
presently six schools which offer Materials Science
Engineering. It is estimated that it will take one school-year for
a Materials Engineering graduate to take up courses which will
qualify them to become Metallurgical Engineers.

There are mining companies in the Philippines which have

provided scholarships for their employees who have college
degrees closely related to mining engineering. They were sent
back to school in order to take up mining related courses, and
consequently earn a mining engineering degree over a two
year period (De Jesus, 2011).

c. Other support staff

The mining industry also employs other professionals for its

support staff. As a response to complaints that mining
destroys the environment and that mining accidents are a
regular occurrence, several companies have began to employ
community development professionals, foresters and
environment experts to help the local communities. Some of
these are employed on a consultancy basis, but there is a
core group of these professionals who work full time with
mining companies.

Mining firms are required to restore the land to its original

condition when they leave a mining site after its mineral
resources have been extracted. Companies are also
required to restore the forest areas which may have been
destroyed in its operations. Most mining companies also
maintain a department which sees to it that operations do
not harm the environment.

The firms usually employ social workers as community

development specialists, foresters, agriculturists and biologists
and chemists . Biologists and chemists manage and
supervise the environmental safety efforts of the mining
46
company. There are several colleges and universities both in
the private as well as public sectors which offer undergraduate
programs in environmental biology, and chemistry, while there
are a selected number of state colleges and universities
offering programs involving community development, forestry
and agriculture.

Philex Mining Corporation is an example of a firm which has

complied with the restoration requirements after the closure of
its mining operations. When Philex Mining Corporation
decommissioned its Pacdal block caving operations in
Benguet (which began in 1958 and generated 356 million tons
of ore over a 53 year period), the firm gathered feedback from
the host community which enabled it to start projects
addressing the health, education, infrastructure and livelihood
concerns of the community. Philex reforested the mountains
surrounding its mine areas and started a relocation process for
its employees. Those who chose to stay were provided
entrepreneurial training (Cabreza, 2012). During its 53 years
of operation, a total of 2,090 hectares have been planted with
approximately 7,000 indigenoous trees, with a 90 percent
survival rate, as part of Philex’s reforestation program
(Ricafort, 2011)

Another firm which restored mined-out areas is the Rio-Tuba

Nickel Mining Corp. (RTNMC) in Palawan which restored the
top soil of mined-out areas, cultivated local micro-organisms
and planted indigenous trees. The firm had to solve the
problem left by a nickel mine because the soil could be
adverse to plant growth due to the very low zero nitrogen and
phosphorous contents prone to erosion alongside a tendency
towards acidity. As of March 2011, the RTNMC had planted
up to 500,000 trees in over 238 hectares of mined-out land
(Jasareno, 2012).

Mine closure plans are a prerequisite for mine licensing

processes under the Philippine Mining Act of 1995. Mining
firms are also required to post a P5 million rehabilitation trust
fund and a P50,000 monitoring fund that must be replenished
(Jasareno, 2012)

d. Mine workers and heavy equipment operators

47
Most mine workers do not receive formal training, with a
majority of miners learning their skills on the job while others
participating in mining related vocational training courses.
Most miners start at entry level jobs such as laborers, driller’s
assistant, blast helpers, assistants to equipment operators,
and helper’s to mechanics, electricians and surveyors. They
begin to perform actual mining work after going through
extensive on the job training which may also involve an
informal apprenticeship arrangement. There are very few
vocational schools offering formal training for actual mining
work and in the support services. Most miners have very
limited formal education, either having completed primary or at
most, the first few years of secondary education. Because of
the required skills as well as the major occupational and health
hazards which workers have to endure, most miners receive
wages which are roughly 20 percent to 60 percent above the
minimum wage.

Heavy equipment operators are needed both in open pit and in

tunnel mining. The Philippine Standard Industry Code defines
heavy equipment operators as workers who drive and operate
heavy equipment used in engineering and construction
projects. Under general supervision they perform skilled work ,
facilitate flood control systems, lead maintenance staff as
needed, and perform other related duties as required. Among
the types of equipment operated are the bulldozers, cranes
and pay loaders which are more common in open pit mining
operations.

The demand for these operators increased as the construction

industry in the Middle East grew. Heavy equipment operators
became the primary targets of “head-hunters or poachers” for
skilled workers. The situation resulted to the widening gap
between the available jobs and the number of skilled
personnel to perform the task and the transfer technology in
heavy equipment operations. The Department of Labor’s
“2020 Vision” plan has identified heavy equipment operators
as both in-demand and hard-to-fill occupations. Shortages in
the supply of the aforementioned workers are in the various
equipment operations of cranes, forklifts, and dump trucks
which are used in mining, construction, sea-based and port
operations.

48
 .

e. Training programs for

heavy equipment operators

Interviews with industry executives revealed that most of the

heavy equipment operators in the Philippines were trained “on
the job.” However, the Technical Skills Development
Authority (TESDA) also conducts training for heavy equipment
operators and preparation for certification exams for those
already in the field. Those with TESDA accreditation are
easily hired by foreign companies and many of them were
consequently employed in the Middle East. At present, not all
of the heavy equipment operators working in the Philippines
are certified by (TESDA).

The Association of Carriers and Equipment Lessors (ACEL) in

the Philippines, is an organization which also participates in
training and assessment of workers involved in heavy
equipment operations. The ACEL and TESDA have signed a
memorandum of agreement that would give ACEL the sole
responsibility of implementing a nationwide and unified system
of occupational skills assessment and certification in the heavy
equipment subsector of the construction industry. In its role as
an Accredited Organization (AO), ACEL which has the
technical capability and resources to undertake the program
will serve as TESDA’s partner in strengthening industry-led
assessment and certification that will result in developing world
class manpower resources and thus, help in increasing the
middle manpower’s employability both locally and
internationally (Association of Carriers and Equipment Lessors
(ACEL), 2012).

Table 17. Numbers of Assessed and Certified HEO Workers

2000-2009
Trade Area Assessed Certified

Heavy Equipment Servicing 1,957 1,204

(Mechanical)
HEO (Articulated Off- 25 25
Highway Truck)
HEO (Backhoe) 2,272 1,635
49
 HEO (Bulldozer) 2,372 1,511
HEO (Concrete Pump) 8 8
HEO (Crawler Crane) 310 202
HEO (Dump Truck Driver) 492 207
HEO (Earth Moving) 65 46
HEO (Forklift) 2,264 1,594
HEO (Gantry Crane) 503 478
HEO (Hydraulic Excavator) 1,461 1,261
HEO (Lifting Category) 2 2
HEO (Motor Grader) 1,482 946
HEO (Rigid-Off-Highway 199 178
Dump Truck)
HEO (Rigid-On-Highway 14 13
Dump Truck)
HEO (Pay Loader) 153 72
HEO (Road Roller) 214 181
HEO (Rough Terrain Crane) 331 326
HEO (Tower Crane) 103 102
HEO (Truck Mountain 409 292
Crane)
HEO (Wheel Loader) 6,129 3,642
Source: Technical Education and Skills Development Authority
(TESDA)

At present, only sixty percent of the heavy equipment

operators who submitted to TESDA certification exams
actually qualified. Many of these workers get the certification
in order to be employed overseas.

The Monark Foundation Incorporated (MFI) adopts the Dual

Training System of education where scholars acquire sufficient
and quality technical knowledge in school and practical
competencies in the industry. As accredited by the TESDA
and a sub-licensee of the CATERPILLAR Institute of
Australia, its graduates are highly recognized both locally and
abroad. At present, MFI offers scholarships to Filipinos who
are between 18 to 25 years old, single, highly motivated to
learn and develop skills that the global heavy equipment
industry demands. The foundation offers a 24 month course
on Heavy Equipment Servicing NC2 (for males), an 18 month
course on Industrial Office Management (for females) as well
as other heavy equipment operation courses such as forklift
operation, loader operation, excavator operation and motor

50
grader operation. Selected graduates from Monark
Foundations’s “Technicians for the World Project” who have
passed the Caterpillar skills assessment as well as TESDA
NC2 assessment for heavy equipment technicians may be
deployed to a French CAT dealer with operations in
Equatorial Guinea, Africa, or a major Middle East CAT dealer
or to the Monark Equipment dealer in the Philippines. The
industrial coordinators and the executive director of the MFI
create and maintain training and job opportunities by
continuing to build partnerships with the industry’s leading
companies and networking with sponsors and non-government
organizations.

f. Technical / vocational courses for high school

graduates

Students able to complete secondary education but are

unable to pursue a college course, may improve their chances
of getting employed by enrolling in training programs
designed to provide them with technical skills needed by the
mining industry. In addition, students who have been able to
finish only one or two years at the tertiary level may also
consider the alternative of completing a technical course to
improve their chances of getting employed even without a
college degree. Presented below is a list of courses under
the Technical Education and Skills Development Authority
(TESDA) which may be taken by secondary education
graduates who are interested in getting employed in the
Philippine mining industry:

Regular Courses with Competency Based Curriculum

Equipment Operations for the following:

1. Backhoe Loader
2. Bulldozer
3. Concrete Pump NC II
4. Heavy Equipment Operation Crawler Crane NC II
5. Heavy Equipment Operation Gantry Crane NC II
6. Heavy Equipment Operation Rough Terrain Crain NC II
7. Heavy Equipment Operation Screed NC I
51
8. Heavy Equipment Operation Tower Crane NC II
9. Heavy Equipment Operation Transit Mixer NC II
10. Heavy Equipment Operation Truck Mounted Crane NC II
11. Heavy Equipment Operation Servicing (Mechanical) NC II
12. Highway Dump Truck
13. Hydraulic Excavator

Other Support Service Operations

14. Reinforced Steel Bar Installation NC II

15. Rigging NC I
16. Rigid Off-Highway Dump Truck NC II
17. Electrical Installation & Maintenance NC II, NC III, NC IV
18. Forklift
19. Pipe Fitting NC II
20. Plumbing NC I, NC II, NC III
21. Scaffold Erection NC II
22. Shielded Metal Arc Welding NC II
23. Structural Erection
24. Submerged Arc Welding NC II
25. Transmission Line Installation & Maintenance NC II, NC III
26. Wheel Loader
27. Welding NC I, NC III, NC IV

g. Entrepreneurial options

Mining workers with TESDA certified skills and adequate work

experience may in the future, move towards setting up their
own enterprises which will undertake subcontracting jobs for
underground mining and development, tunneling projects,
and quarry and drilling operations. Workers with expertise in
heavy equipment operations may consider becoming
independent service providers which can be subcontracted by
large scale firms interested in outsourcing these functions in
order to cut down on operational cost. Several owners of
small and medium scale enterprises involved in quarrying
marble, granite, sand and gravel initially started as heavy
equipment operators. After several years of working as
employees, they consequently ventured into independent
operations after accumulating enough experience in the
business and getting access to enough working capital.

52
Another entrepreneurial option outside of mining and
quarrying operations, is the pursuit of livelihood programs
involving livestock and processed food production. As part of
the firm’s corporate social responsibility (CSR) functions,
Philex Mining for example, through its Community Business
Technology Center (CBTC), promotes livelihood programs
such as livestock, aquaculture, meat processing, and coffee
and vegetable production among its employees . The
company is providing employees and their families free
livelihood training to empower them as small scale
entrepreneurs or agri-businessmen. The company is also
helping employees to establish cooperatives to make their
livelihood sustainable (Diso, 2011). A total of 24 scholars
completed free training on meat processing, with another 28
scholars expected to participate in the training program for
2012. The meat processing CBTC is in full implementation
and currently produces an average of 2,000 kilograms per
month of processed meat food being sold to local
communities, with the finished products being distributed
through marketers who are mostly dependents of Philex
Mining employees (Camacho, 2011). Under the coffee CBTC,
a total of 1,200 robusta coffee and 300 golden shower
seedlings have already been planted and currently being
maintained by the local residents, while the aquaculture CBTC
has construction of the aquaculture and sedimentation ponds
which are both on-going (Philex Mining Corporation, 2012).

VII. Job Outlook and Prospects

The global economic crisis in 2008 and the concomitant fall in

demand for metals had a negative impact on the Philippine
mining industry. However, prospects for employment
expansion for 2011 and beyond, are moderately good
considering that mining output is expected to grow at an
annual average rate of 2.57 percent along with increasing
investments (Wood, 2010). The increase in the number of
operating mines from fourteen in 2003 to twenty eight in 2010
shows the continuing efforts of expansion being undertaken
by the private sector (along with government support) that is
expected to boost output and employment growth. The
increase in the production volume of the country’s top three
minerals namely: gold, copper and nickel provides a good
indication of prospects within the medium term. The
operation of new mines, higher mineral product demand and
53
favorable prices have raised copper and nickel production to
over 49,000 and 137,000 metric tons respectively, during the
year 2009. The scale of untapped natural resources in the
country (with an estimated value of over $ 1 trillion) should be
making the country a key target for foreign mining concerns
over the long term. (Business Monitor International, 2011).
Lepanto Consolidated Mining Company operates the Victoria
Gold Mine in Benguet which has production capacity of
875,000 tonnes. Philex Mining Company has the Pacdal
Copper Mine in Benguet which can generate 37.6 million
pounds of copper, and 171,092 ounces of both gold and silver.
Benguet Corporation can produce 1 million metric tons of
refractory chromite and 57,000 metric tons of metallurgical
chromite. While the production capacity for nickel ore is
largest for the Rio Tuba Nickel Mining Corporation, at 867,403
metric tons, the Cagdianao Mining Corporation at 500,000
metric tons, the Hinatuan Mining Corporation at 220,000
metric tons and the Taganito Mining Corporation at 150,000
metric tons (Mines and Geosciences Bureau, 2011).

Because of the number of projects currently being developed,

along with ongoing exploration activities, gold and copper
output is expected to further increase within the next three to
four years (Ramos, 2010). The country has seen an upsurge
in foreign mining investment since 2005, when the Supreme
Court upheld the constitutionality of the Financial or Technical
Assistance Agreement and the Mining Act of 1995 which
allows 100 percent foreign ownership in Philippine mining
companies. Over 30 foreign companies have investments in
the Philippine mining sector and some 24 flagship projects are
expected to be operational before 2016 (Mining Journal 2009).
Government’s efforts to revitalize the mining industry should
continue to encourage more investment which is expected to
boost the demand for both professionals and productions
workers (Halcon, 2005).

However, it is also important to consider the issues raised by

special interest groups which have been campaigning against
mining operations because of environmental concerns and the
social costs to communities which are going to be displaced.
Several local governments have banned open pit mining
operations because of the environmental damage it creates
54
and its negative spill over effects on the agricultural sector.
Open pit mining operations may create damaging effects on
water resources, water supply and its quality which further
worsens living conditions for residents of downstream
communities. The South Cotabato Environment Code for
example, contains a provision to ban the use of open pit
mining in the province, which runs counter to the Philippine
Mining Act of 1995. The Regional Development Council
believes that the passage of the code with the above
mentioned provision will derail efforts towards the
implementation of the Tampakan Copper Gold Project (to be
operated by Sagittarius Mines Inc.) which happens to be the
flagship minerals development project for Mindanao. The
South Cotabato provincial government stands firm in its
position to require Sagittarius Mines Inc. to present a water
management plan that will prevent the negative effects of
possible open pit mining operations (Regional Development
Council XII, 2009). In addition to this, are the activities of
communist rebels which raid mine sites and damage
equipment as part of their response to stop unregulated
mining operations or in some cases, extort payments from the
mining firms. In October 2011, police reports revealed that
roughly 200 New People’s Army (NPA) guerillas attacked the
compound of the Taganito Mining Corporation in Claver town,
Surigao del Norte, briefly taking several employees hostage
and burning trucks, excavators and a guest house. The mine
is owned by Nickel Asia Corporation, the Philippines largest
producer. An affiliate, Taganito HPAL Nickel Corporation and
the nearby Platinum Metals Group were also attacked in what
NPA rebels claimed as “payback” for years of alleged
environmental damage and abuse by firms. Approximately P3
billion pesos worth of equipment and facilities were damaged
which included the burning of a smelting plant, guest house,
132 dump trucks, 22 backhoes, nine barges, two cranes, two
bulldozers a compactor and a grader. Surigao del Norte is
home to 10 of the country’s 30 metallic mines (Philippine Star,
2011, Guitierrez, 2011). These issues should be immediately
addressed by government so that a reasonable compromise
may be arrived at, which will meet environmental protection
goals, and at the same time achieve environmentally sound
and acceptable mining practices.

The mining industry holds a lot of potential and performs a

complementary role in industrial development. It will be
55
necessary to use this potential if the country wants to attain
its economic development goals within the next decade, but at
the same time remain prudent in the use of these natural
mineral resources, so that succeeding generations may still
benefit from it. Responsible mining should protect the
environment, and restore mine sites to their original condition
through reforestation efforts. A good compromise between
sound environmental protection and effective regulation of
mining activities should reduce the hostility coming from anti-
mining advocates and promote efforts to tap the country’s
unused mineral potential. Such efforts should continue
encouraging investment into mining along with job creation
and the development of both upstream and downstream
mineral processing activities.

56
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Galeon, Florence A. Assistant Professor, Department of Geodetic
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