NSW Mining spending worth $9.3 billion in Hunter

November 22, 2012

New economic data shows that workers and businesses in Hunter towns like Newcastle, Muswellbrook and Singleton are directly reaping hundreds of millions of dollars in economic benefits from mining activity in NSW.
 
The NSW Minerals Council’s detailed economic survey of its members, conducted by the University of Newcastle and Lawrence Consulting found that the 21 mining companies surveyed directly spent over $4.6 billion in the Hunter comprising $1.3 billion in wages and $3.3 billion in spending on goods, services and community contributions in 2011/12.
 
When indirect spending is taken into account, the companies surveyed provided around $9.3 billion in economic stimulus across the Hunter, estimated to have contributed around one quarter of the Gross Regional Product (GRP) of the Hunter in the last financial year.
 
“Mining direct spending in the Hunter is the highest in the State, reflecting the importance of mining to the Hunter economy,” said NSW Minerals Council CEO Stephen Galilee who will release details of the Hunter results at a Hunter Business Chamber lunch today.
 
"Thousands of local businesses in the Hunter Valley rely on local mining activity, from hotels and restaurants to mechanics and recruitment services, and these survey results reflect the flow on effects from our industry,” Mr Galilee said.
 
When broken down by local government areas, the survey reveals that the 21 mining companies spent around $1.2 billion directly on wages, goods, services and community contributions in Singleton, around $850 million in Newcastle, around $715 million in Maitland, nearly $350 million in Muswellbrook and nearly $330 million in Cessnock.
 
One example of businesses in the Hunter benefitting from NSW mining is Subzero Group, a NSW based mining support company founded in Muswellbrook that offers a range of engineering services to nearby Hunter Valley coal mines.
 
“Recognising an opportunity to engage with the Hunter mining sector around a decade ago, our mining services group grew quickly and we are now recognised as an industry leader, employing around 600 people across our support operations,” said Subzero Group Managing Director Scott Farrell.
 
Mr Galilee will tell the Hunter Business Chamber that despite current industry challenges he is very optimistic about the long-term opportunities for Hunter Valley companies to engage with the local mining sector.
 
“Strong long term demand for energy, an abundant supply of high quality coal, and our rail and port infrastructure will mean NSW is in the coal mining business for decades to come, underpinning the economic strength of the Hunter,” Mr Galilee said.

Download the full Economic Impacts study.

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