Introduction Economy watch factually defined mining industry that deals with the process or business regarding extraction

of ore or minerals from mines. The act of extracting is normally done by the government authority, individual entrepreneurs or may be by small business owners. Government agencies, multinational companies or any public sector company generally take the responsibility of extracting mines as the entire process of extraction require a large amount of capital. Despite its small area, the Philippines are one of the world's richly endowed countries in terms of mineral resources. In fact, the country's refractory chromite resource in Zambales is considered as one of the largest in the world.
(NSCB.MineralAssetAccounts). As of June 2012, the total gross value added (GVA) at

constant prices of the mining and quarrying industry reached P 99.2 billion or contribute 1.0 percent of the total Gross Domestic Product and of 2010 the gross production value is P 145.3 billion much higher than in 2009. Regardless of being geologically blessed, the Philippines remain one of the most challenging places in Asia for foreign miners. Accounting for nearly 20% of GDP in the 1970s, after decades of neglect by successive governments, mining now accounts for less than 2% of GDP. The Philippine Mining industry is seen as a sunset industry. Since the mid 90s the government has strongly courted new investment to re-establish the sector. However political and country risk issues continue to hold back the development of a serious mining industry in the country. The industry has been incurring losses for a long period of time already because of the decreasing prices of minerals in the world and inefficient ways of obtaining mines. The industry also lacks huge amount of

capital that is very much needed in order to purchase technology and to further their exploration of mining areas. In order to revive the industry, it needs huge amount of capital. Background of the study Minerals are natural substances, usually comprising inorganic element or compound, having an orderly internal structure and characteristics, chemical composition, crystal form, and physical properties (NAMRIA-DENR, 1991). Any concentration of these minerals, with a potential economic value that can be extracted at a profit, is considered a mineral resource. The Philippines is one of the world's most highly mineralized countries, with untapped mineral wealth estimated at more than $840 billion. (http://www.philippinemetals.com). Philippine copper, gold, and chromate deposits are among the largest in the world. Other important minerals include nickel, silver, coal, gypsum, and sulphur. The Philippines also has significant deposits of clay, limestone, marble, silica, and phosphate. Notwithstanding its rich mineral deposits, the Philippine mining industry is just a fraction of what it was in the 1970s and 1980s when the country ranked among the 10 leading gold and copper producers worldwide. Low metal prices, high production costs, and lack of investment in infrastructure contributed to the industry's overall decline. The Mines and Geosciences Bureau (MGB), an attached agency of the Department of Environment and Natural Resources (DENR) that oversees the mining industry in the Philippines, has provided updates on the status of the industry as of June 2010. The contribution of the mining sector to the Philippines' gross domestic product (GDP) amounted to PhP145.3 billion at current prices, representing about 1 percent of the GDP in 2010. However, this was nearly double the sector's contribution back in 2002. Mining, likewise, contributes to the country's

foreign-exchange earnings through exports.

Mineral exports accounted for 3.69

percent of total RP exports in 2010, down by 2 percent in 2008. And was still way below the 25 percent contribution of the mining sector to national exports in the 1970s. For one, the industry provides employment opportunities to a significant portion of the population, directly and indirectly. As of 2010, some 197,000 individuals were employed in the industry, representing 0.54 percent of the labour force. However, according to the MGB it should be noted that over 44,000 new jobs have been generated over the last three years alone. Furthermore, the industry provides additional revenues for the government through taxes and fees paid on mining and other related activities. The government collected PhP13, 373.4 million in taxes, fees and royalties from mining operations in 2006. Nonetheless, in the Philippines, Mining and quarrying sector contributes to the economy in terms of increased Employment, Foreign Exchange earnings and, Tax Revenues. Mining can moreover help lighten poverty. The launching of a mining project shares local and regional economic development as mining firms invest in road infrastructure, utilities, and other facilities within the mine site. The government has a great influence in mining industry. The government provides the necessary conditions that would be beneficial for the industry. The industry needs the support of the government in order to get capital from foreign investors. The government should provide laws that would encourage both local and foreign investors to finance the explorations of mining companies. To fully develop the mining industry the Philippine government grants Mineral Production Sharing Agreements or the Philippine Mining Act of 1995 on condition that the mining activities are managed in a technically, financially, socially, culturally and environmentally responsible manner to enhance the national growth and welfare of

the Philippines. And of December 2004 Supreme Court decision upheld the constitutionality of the 1995 Mining Act, thereby allowing up to 100% foreign-owned companies to invest in large-scale exploration, development, and utilization of minerals, oil, and gas. However, some local government units have enacted mining bans in their territories, citing concerns over environmental degradation, unequal distribution of tax revenue, unemployment caused by displacement of small-scale miners, and marginalization of Indigenous People. With this paper the researchers would hopefully give valuable information regarding the importance of Mining industry which plays a very important role in the countrys economic development. It is therefore necessary to assess the production performance of mining industry. In particular, the study shall identify major factors that significantly affect the behaviour of Philippine mineral production value.