Archive:Non-energy mining and quarrying statistics - NACE Rev. 1.1
This Statistics Explained article is outdated and has been archived - for recent articles on structural business statistics see here.
- Data from January 2009. Most recent data: Further Eurostat information, Main tables and Database.
This article belongs to a set of statistical articles analysing the structure, development and characteristics of the various economic activities in the European Union (EU). The present article covers the non-energy mining and quarrying sector, which consists of:
- underground and open-cast mining of ferrous and non-ferrous metal ores, corresponding to NACE Division 13;
- mining and quarrying of other non-energy producing materials, corresponding to NACE Division 14.
It also treats the extraction of a variety of materials traditionally used for construction purposes (such as sand, clay or stone), and of salt and a range of other chemical and fertiliser minerals. Together these NACE divisions make up the non-energy mining and quarrying sector.
Note that this article covers only extractive activities, and not the processing of fuel, the manufacture of non-metallic mineral products, nor the network supply and distribution of electricity, gas and steam.
_Structural_profile,_EU-27,_2006.PNG)
Main statistical findings
Structural profile
_Structural_profile_ranking_of_top_five_Member_States_in_terms_of_value_added_and_persons_employed,_2006.PNG)
There were about 18 300 enterprises with non-energy mining and quarrying (NACE Subsection CB) as their main activity in the EU-27 in 2006, and they generated EUR 19.5 billion of value added and employed 288.5 thousand persons. Non-energy mining and quarrying is a relatively small industrial activity, accounting for just 0.3 % of the value added generated within the EU-27’s non-financial business economy (NACE Sections C to I and K) or 0.2 % of its workforce. Relative to mining and quarrying (NACE Section C) as a whole, non-energy mining and quarrying accounted for 22.0 % of value added and 39.3 % of the workforce.
The enterprise size structure of the non-energy mining and quarrying sector is the average of two extremes. Overall, it is dominated by locally-based small and medium-sized enterprises that operate principally within the other mining and quarrying subsector (NACE Division 14), while there were just 300 enterprises active within the mining of metal ores (NACE Division 13) in the EU-27 in 2006. The difference in the number of enterprises was a factor of 55 in favour of other mining and quarrying subsector, while the corresponding ratio for value added suggested that other mining and quarrying activities were 2.9 times as large. At the more detailed level of NACE groups, the quarrying of sand and clay (NACE Group 14.2) was clearly the largest activity covered by this article, accounting for close to half of all enterprises (52.5 %), value added (48.8 %), investment in tangible goods (51.4 %) and employment (48.5 %).
There were seven principal producers of non-energy mining and quarrying products within the EU-27; the six largest Member States (in terms of population) and Sweden. Each of these generated between 9.5 % and 12.9 % of the EU-27’s value added in this sector (Polish data are for 2005), with the highest level recorded in the United Kingdom (EUR 2.5 billion). Bulgaria, Poland (both 2005), Sweden, Ireland, Portugal and Romania were clearly the most specialised Member States in value-added terms – each of these countries reported that their non-energy mining and quarrying sector contributed at least twice the EU-27 average share to value added within their respective non-financial business economies.
In employment terms, the Polish workforce of 36 400 (again for 2005) was equivalent to 12.3 % of the EU-27 total and was followed by Germany (12.0 %), whilst Romania (also 2005) as well as the United Kingdom, Italy, Spain and France each had between 28 000 and 30 000 persons employed in the sector. Employment in the non-energy mining and quarrying sector was also relatively high in Sweden, where it stood at 8 100 persons in 2006. The regional specialisation of non-energy mining and quarrying activities, based on the non-financial business economy employment share of this sector, is shown in Map 1. Relatively high shares were recorded for several regions on the periphery of the EU, notably Övre Norrland in northern Sweden (where 4.0 % of the non-financial business economy workforce was employed in non-energy mining and quarrying activities), northern regions of Finland, several regions in Bulgaria, Greece and Romania, central and southern Portugal, as well as Cornwall and Devon in the United Kingdom.
The last decade has seen almost continual growth for the EU-27 index of production for non-energy mining and quarrying, averaging 2.1 % per year during the ten years to 2007, and only interrupted by a 2.3 % reduction in 2001. The performance of the overall index is closely tied to the evolution of output from the mining of stone and the mining of sand and clay. In contrast, the index of production for the mining of metal ores resembles more closely that for energy-producing materials, with output falling.
The EU-27 employment index for non-energy mining and quarrying fell in each of the last nine years, with reductions averaging 2.7 % per year. More detailed information (available since 2000) shows that the largest reductions in employment were recorded for the mining of metal ores (averaging -14.6 % per year between 2000 and 2007 – equivalent to an overall fall of more than 60 %). During the same period, the employment index for other mining and quarrying fell to a low in 2004, since when three consecutive increases were registered.
Other mining and quarrying experienced uninterrupted domestic output price growth in the EU-27, averaging 2.7 % per year in the ten years to 2007. Prices generally rose at a fairly uniform pace, although there was a high increase of 6.5 % in 2002 and some evidence of accelerating price growth in 2006 and 2007 (as year-on-year increases of 3.0 % and 3.8 % were registered). A shorter time series is available for the mining of metal ores, with price fluctuations considerably greater. This reflected contract negotiations between iron ore mining and steel making enterprises, as well as rising global demand for metals in general, driven by unprecedented demand from rapidly emerging economies, such as China, Brazil and India. EU-27 output prices for metal ores stood almost 160 % higher in 2007 than they were in 2000 – by far the biggest increase across any of the NACE divisions within the industrial economy.
Expenditure and productivity
_Expenditure,_productivity_and_profitability,_EU-27,_2006.PNG)
The EU-27's non-energy mining and quarrying sector recorded an investment rate (the ratio of investment to value added) of 22.8 % in 2006, somewhat higher than the average for the whole of the non-financial business economy (18.4 %). The capital-intensive nature of this activity is evident when looking at its share of total investment within the non-financial business economy (0.4 %), which was almost twice as high as its share of the non-financial business economy workforce (0.2 %).
Nevertheless, personnel costs accounted for a relatively high proportion (21.5 %) of total operating expenditure in the EU-27’s non-energy mining and quarrying sector in 2006, compared with an average of 16.1 % for the whole of the non-financial business economy. This relatively high share was based on average personnel costs of EUR 30 200 per employee, slightly above the non-financial business economy average of EUR 28 800 per employee.
In contrast, the EU-27’s non-energy mining and quarrying sector recorded an apparent labour productivity of EUR 67 500 per person employed in 2006, which was 55 % higher than the non-financial business economy average (EUR 43 500 per person employed). Combining these two ratios into the wage-adjusted labour productivity ratio shows the relationship between value added and personnel costs per head, and indicates that value added per person employed in the EU-27's non-energy mining and quarrying sector was equivalent to 223.5 % of the average personnel costs in 2006, significantly higher than the non-financial business economy average (151.1 %).
Among the NACE groups that make-up the non-energy mining and quarrying sector, the most capital-intensive and productive activity was the mining of iron ores subsector. The quarrying of sand and clay was the only other activity to record labour productivity above the sectoral average, while the mining of non-ferrous metals was the only other activity to report a wage adjusted labour productivity ratio above the sectoral average (resulting from average personnel costs that were less than two thirds the non-financial business economy average).
The highest level of wage-adjusted labour productivity within the non-energy mining and quarrying sector was recorded in Sweden (384.5 %) – a country specialised in the mining of iron ores – where apparent labour productivity was close to four times the average personnel costs. Only Slovakia and Romania (2005) recorded wage-adjusted labour productivity ratios in the non-energy mining and quarrying sector that were below the average ratio for the non-financial business economy.[1]
Data sources and availability
The main part of the analysis in this article is derived from structural business statistics (SBS), including core, business statistics which are disseminated regularly, as well as information compiled on a multi-yearly basis, and the latest results from development projects.
Context
The global mining and quarrying sector is characterised by a relatively small number of international enterprise groups, that operate across the continents – sometimes with only their head office in the EU or another developed economy. These large-scale producers are complemented by a large number of smaller enterprises, typically serving a local market in low value, widely available products, often for use in construction. The location of mining and quarrying activity generally reflects the spatial distribution of mineral deposits. However, there can be considerable cost differences between mines, for example, in relation to the depth at which deposits are found, or whether they are on land or at sea. Aside from geographical and geological cost differences, the decision of whether or not to (re-)open a mine may also depend, among others, on global, commodity prices, as well as regulations concerning the environmental impact of mining or the disposal of its waste.
The EU aims to become a low-carbon, energy-efficient economy in the coming years. The integrated energy and climate change policy laid out in December 2008 aims to cut greenhouse gases by 20 %, reduce energy consumption by 20 % through increased energy efficiency and to meet 20 % of the EU's energy needs from renewable sources by 2020 – these goals will have implications on the way extractive activities operate.
Another important aspect in relation to this sector concerns the security of supply for downstream activities. Aside from well-publicised geopolitical disputes which have threatened the supply of crude petroleum or natural gas to European markets, there are also a large number of non-energy related minerals, which are often essential for downstream manufacturing activities. There is no indigenous supply for many of these, with the extraction of construction materials being one of the few areas where the EU is largely self-sufficient.
In November 2008 the European Commission (COM(2008) 699) published a raw materials initiative, stating that access to and the affordability of many raw materials is likely to play an important role in determining the competitiveness and future growth prospects of the EU economy. As with many energy producing materials, the EU is also highly dependent on a range of strategically important non-energy minerals and ores that are imported from a range of countries, in particular: China, the Russian Federation, Australia and a range of countries in Africa and South America.
The EU is particularly dependent on imports of metallic minerals. While some of these metals are needed only in tiny quantities, they can be essential for the production of technologically sophisticated products, in particular, new areas of development related to environmental technologies (for example, hydrogen-fuel based cars require platinum-based catalysts and electric-hybrid cars need lithium batteries). A range of European manufacturing activities, most notably the chemicals, motor vehicles, aerospace, machinery and equipment sectors all depend on supplies of raw materials such as these. Aside from these technologically-driven uses, industrial and construction minerals are often further processed in downstream sectors, for example, the manufacture of glass, concrete, or agricultural chemicals, as well as being used directly within the construction sector. The EU is self-sufficient in most construction minerals, in particular aggregates, and is also a leading producer of feldspar, gypsum, potash and natural stone.
Further Eurostat information
Publications
Main tables
Database
- SBS - industry and construction (sbs_ind_co)
- Annual detailed enterprise statistics - industry and construction (sbs_na_ind)
- Annual detailed enterprise statistics on mining and quarrying (NACE Rev.1.1 C) (sbs_na_2a_mi)
- Annual detailed enterprise statistics - industry and construction (sbs_na_ind)
Dedicated section
See also
Notes
- ↑ Belgium, Bulgaria, Greece, Cyprus, Poland and Romania: data from 2005; Ireland, Malta, the Netherlands and Slovenia: data not available.