These are businesses whose main activity is the mining, quarrying or extraction of minerals, occurring naturally as solids (coals and ores), liquids (petroleum) or gases (natural gas), via underground or surface mining, well operation and seabed mining. Supplementary activities are included.
Publications
The Annual Business Inquiry (ABI) is conducted in two parts: employment and financial information. This release deals with the financial inquiry which collects information for about two thirds of the UK economy, covering agriculture (part), hunting, forestry and fishing; production; construction; motor trades; wholesale; retail; catering and allied trades; property; service trades. The financial variables covered include turnover, purchases, employment costs, capital expenditure and stocks. Approximate Gross Value Added (GVA) is calculated as an input into the measurement of Gross Domestic product (GDP).
The Annual Business Survey (ABS) collects financial information for about two thirds of the UK economy, covering agriculture (part), forestry and fishing; production; construction; motor trades; wholesale; retail; catering and accommodation; property; service trades. The financial variables covered include turnover, purchases, employment costs, capital expenditure and stocks. Approximate Gross Value Added (aGVA) is calculated as an input into the measurement of Gross Domestic Product (GDP).
Information covering all mines and quarries, except deep mined coal, for mineral extraction in Great Britain.
Provides information on the value of the economic activity that businesses generate and associated expenditure across the main industrial sectors in Northern Ireland.
Provides information on the value of the economic activity that businesses generate and associated expenditure across the main industrial sectors in Northern Ireland.
Scottish Annual Business Statistics includes detailed data on employees, turnover, gross value added, labour costs and other financial data. Data are shown by industry sector, local authority area and ownership.
Overview
Activities include:
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mining of coal from deep mines and open cast coal working
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mining of lignite
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extraction of crude petroleum and natural gas
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mining of ferrous and non-ferrous metal ores
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quarrying of stones including limestone, gypsum chalk and slate
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operation of gravel and sand pits; mining of clays and kaolin
Further activities:
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mining of chemical and fertiliser minerals and other minerals and materials
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extraction of peat
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extraction of salt
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support activities for the above industries
Activities exclude:
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operation of coke ovens, pipelines and blast furnaces
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all manufacturing processes
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geophysical, geologic and seismic surveying
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roasting of iron pyrites
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production of aluminium oxide, uranium metal, mattes of copper or nickel and calcined dolomite
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finishing of stone
Further exclusions:
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mining of bituminous sand
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specialised repair of mining machinery
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processing of natural gas for transportation, done off the mine site
Technical Data
Data on different aspects of the industry are collected in a number of surveys carried out by the Office for National Statistics (ONS), Her Majesty’s Revenue and Customs (HMRC) and the Department for Energy and Climate Change (DECC). These are:
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Annual Business Inquiry (ABI/2) – financial data
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Annual PRODCOM – sales of some minerals
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Annual Minerals Raised Inquiries (AMRI) – volume data (tonnage)
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HMRC – imports and exports
The Department for Energy and Climate Change (DECC) collects monthly volume data (tonnes) for both deep mined and open cast coal from the UK Coal Authority and from coal mines directly. Data totalled to UK level data are published online and in quarterly and annual publications.
Monthly data on oil and gas discovered and produced are collected by DECC’s Petroleum Production Reporting System (PPRS). Data are collected under six types of reporting unit:
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oil field exporting to pipeline
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onshore field or offshore tanker loader
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dry gas field
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oil pipeline terminal
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associated gas terminal, and
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dry gas terminal
Field data are reported in volume (cubic metres) and terminal data in mass (tonnes) together with densities (Kg/m3) and calorific values (MJ/m3) where appropriate.
ABI/2 data totalled to industry level for the main variables feed into the UK National and Regional Accounts. They are also used to derive Gross Value Added (GVA), which measures the contribution of the mining and quarrying industry to the economy. Other measures such as turnover per head are derived using employment data collected by the Annual Business Inquiry (employment). AMRI data are combined with PRODCOM sales data for the extraction of stone, sand, clay and salt together with information on imports and exports of these products, collected by HMRC. These surveys are sample surveys but data collected are weighted to provide an estimate covering the total population of the sector.
Total Turnover
The total turnover of the business is collected by the ABI. This, together with other variables, is used to derive industry level GVA.
Other main variables collected and used in the calculation of GVA are:
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employment costs
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purchases of energy goods, materials and services
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tax, duties and levies paid
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subsidies receivable
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value of stocks held
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capital expenditure
Gross Value Added (GVA)
GVA is used in the estimation of Gross Domestic Product (GDP), which is a key indicator of the state of the economy. The UK uses three approaches to estimate GDP: ‘production’, ‘income’ and ‘expenditure’. All three approaches are balanced annually using the Input-Output Supply and Use Tables accounting framework. The GVA for the mining and quarrying sector is used in the estimation of the GDP ‘production’ approach.
The link between GVA and GDP can be defined as:
GVA (at industry level current basic prices)
plus taxes on products (available at whole economy level only)
minus subsidies on products (available at whole economy level only)
equals GDP (at current market prices; available at whole economy level only)
The Standard Industrial Classification (SIC) defines the activities covered by the mining and quarrying sector. The main or principal activity of a business is defined as the activity that contributes most to the business’s total value added. In practice, variables such as employment, salaries and gross output are used instead of value added.
The UK SIC, which defines all of Office for National Statistics' (ONS’) business surveys, is based on the European Communities classification of Economic Activities, NACE (from January 2008, a major revision of NACE was introduced, NACE Rev.2). ONS is in the process of converting its surveys to NACE Rev.2, with the ABI/2 and PRODCOM 2008 surveys to be despatched early in 2009, among the first selected on the new classification SIC 2007.
For the mining and quarrying sector this means that some processes such as the production of solid fuels are now excluded under the new classification, but other activities such as test drilling for oil and gas extraction will be included under SIC 2007. All ONS business surveys will be converted to SIC 2007 over the next few years, with the National Accounts system being the last to be converted in 2011. In order to take full advantage of the change in classification, all survey samples will be re-optimised as each survey converts to SIC 2007.
Glossary
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Annual Business Inquiry (ABI)
An annual business survey covering most sectors of the economy. ABI/1 collects data on employment while ABI/2 collects financial data such as turnover, stocks, and capital expenditure.
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Associated gas
Natural gas found in association with crude oil in a reservoir, either dissolved in the oil or as a cap above the oil.
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Capital Expenditure (Including non-deductible VAT but excluding deductible VAT)
Capital Expenditure includes the purchase costs and disposal proceeds of fixed assets, together with any other amounts treated as capital items for taxation purposes. Grants and allowances from government sources, statutory bodies and local authorities should be included.
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Crude Oil
A mineral oil consisting of a mixture of hydrocarbons of natural origins, yellow to black in colour, of variable density and viscosity.
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Density
These are standard terms for the measurement of density Kg/m3 – kilograms per cubic metre and MJ/m3 – mega joules per cubic metre
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Department for Energy and Climate Change (DECC)
This was formed by the merging of the Energy Group in the Department of Business, Enterprise and Regulatory Reform and the Climate Change section in the Department of Environment, Farming and Regional Affairs.
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DUKES
Digest of UK Energy Statistics. The Digest provides essential information for everyone, from economists to environmentalists and from energy to energy users.
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Employment Costs
This is the amount the business pays for its workforce to carry out the activities of the business. It includes wages and salaries paid to all employees as well as the National Insurance and pensions contributions paid by the employer. Employment costs for subcontracted work where the employees are not directly employed by the business are excluded.
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Eurostat
The Statistical Office of the European Communities, based in Luxembourg.
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Generally Accepted Accounting Principles (GAAP)
The standard framework of guidelines for financial accounting. It includes the standards, conventions and rules accountants follow in recording and summarising transactions, and in the preparation of financial statements.
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Gross Domestic Product (GDP)
A measure of the value of the goods and services produced in the economy in the year. It is a good indicator of the wealth and economic development of a country. Developed countries typically have high GDPs and developing countries typically have low GDPs. Income earned abroad, such as overseas investments, is not counted in GDP, but is counted in a country’s Gross National Product (GNP).
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Gross Value Added (GVA)
A measure of the value of the goods and services produced in the economy used to monitor the performance of the national economy as a whole. It can also be used by individual businesses to monitor their performance, and hence the profitability, of their business. GVA is calculated as the value of sales of goods and services – the cost of purchases of energy goods, materials and services.
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LNG
Natural gas that has been converted to liquid form for ease of storage or transport.
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Matte
A mixture of impure metal sulphides produced during the smelting of sulphide ores of copper, nickel and other metals.
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Natural gas
A mixture of naturally occurring gases found either in isolation, or associated with crude oil, in underground reservoirs. The main component is methane although ethane, propane, butane, hydrogen sulphide and carbon dioxide may also be present. These additional gases are mostly removed at or near the well-head or in gas processing plants.
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Nomenclature of Economic Activities in the European Community (NACE)
This classification of economic activities has been developed by the Statistical Office of the European Communities (Eurostat) since 1970. It classifies statistical units (for example, companies and establishments) related to economic activity providing the base on which to develop a wide range of statistics such as products, consumption, capital formation and financial transaction (see Standard Industrial Classification).
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PRODCOM
PRODucts of European COMMunity. The survey of manufactured products governed by EU Regulation 3924/91 and covers mining and quarrying, manufacturing, and electricity, gas and water supply. The product definitions are standardised across the EU to give comparability between Member States’ data and the production of European aggregates at product level. The UK PRODCOM survey collects limited data from the mining and quarrying industry and nothing from the electricity, gas and water supply sector. Value and volume data are collected on a total of 4,400 products from UK manufacturers in 258 industries.
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Purchases of energy goods, materials and services
The amount paid by the business for all energy goods, materials and services used to carry out the activities of that business. This figure is exclusive of VAT but inclusive of other taxes, duties and levies.
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Standard Industrial Classification (SIC)
The classification used by the Office for National Statistics (ONS) to classify businesses to particular industries for statistical purposes including the collection of financial data. The UK classification is based on the European Communities (EC) classification of Economic Activities (NACE). It is used widely throughout the EC and enables comparisons to be made between national and EC statistics. Any revisions to NACE are made under EC Regulation and all Member States are obliged to adopt the changes. Along with other Member States, the UK is in the process of converting to NACE Rev.2, which under the UK classification is called SIC 2007.
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Stocks held
Stocks, or inventories, include all goods and materials on hand for sale or processing, including work in progress owned by the business in the UK. They should be valued in accordance with UK GAAP (Generally Accepted Accounting Practice) or International GAAP. Balances on long-term contracts included in stocks should exclude any progress payments made.
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Subsidies on products
Amounts receivable from UK government bodies or the European Commission (EC) to reduce the price of products (goods or services) sold to customers. Grants received from any source as one-off payments to lessen the burden of purchasing capital expenditure items are excluded.
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Tax, duties and levies paid
The total amount payable in taxes (excluding VAT), duties or levies on the energy goods, materials and products purchased by the business in order to carry out the activities of the business. It is paid to government, other statutory bodes and local authorities. Any amounts payable in taxes, duties and levies on the outputs of the business are also included.
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Turnover (excluding VAT)
Turnover consists of total takings or invoiced sales and receipts of the business in connection with the sale of goods and services and should include any indirect taxes, duties and levies (except VAT) invoiced to the customer. Interest and similar income, other operating income and extraordinary income are excluded as are the net proceeds on the sale of capital items.
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Upstream
A term to cover the activities related to the exploration, production and delivery to a terminal or other facility of oil or gas for export or onward shipment within the UK.
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Weighting
The process of estimating a total from a sample. (The process was previously called ‘grossing’ but the ONS’ Methodology Directorate has revised the term to ‘weighting’.)
Contact Details
For statistical enquiries about this topic, please contact:
ONS Customer Services
Email: info@statistics.gov.uk
Telephone: +44 (0) 845 601 3034
Room 1.015 Government Buildings Cardiff Road Newport NP10 8XG
