2014 NSW Minerals Council Expenditure Survey

November 17, 2014

The NSW Minerals Council’s latest Expenditure Survey has found that the 22 participating mining companies directly injected $13.6 billion into the NSW economy in 2013/14, up from $12.8 billion the previous year.  
The $13.6 billion of spending in 2013-14 included $2.9 billion in wages and salaries to 21,516 full-time employees and $9.6 billion in purchases with 8,202 local businesses, along with community contributions and payments to local government.
This survey, now completed for a third year, demonstrates the scale of our contribution and the importance of mining to the broader NSW economy, as well as the economic impact of tough times, and how this is flowing into other sectors of the economy. 
While industry spending is up and our economic contribution remains strong, there are less mining jobs than last year, and fewer businesses in the mining supply chain. 
The mining companies surveyed employed 1,967 fewer people in 2013/14 than the previous year, mainly due to the difficult market conditions facing the industry over the past 18 months. 
These job losses are a heavy burden for mining communities and mining families. Sadly, further job losses from recent NSW Government planning decisions will add to this burden. 
The number of NSW businesses in the mining supply chain has also fallen, by around 2,000 or just over 20 percent  to 8,202 - as margins tighten and business conditions get tougher. 
Gus Mather from Pirtek in Muswellbrook manufactures hydraulic hoses for the Hunter mining industry and has has seen the impact of the downturn in the local mining industry first hand. 
The business supplies the nearby Drayton mine, and the impact of the NSW government’s broken planning system and the failure of the NSW Government to approve the Drayton South project has Gus very concerned for the future.
“My family has been working with the mining industry for years and we’ve never seen it this bad.  When the government lets mines go to the wall, local businesses go right along with them.  I don’t want to have to make the call to let any of my people go before Christmas, but that’s the direction it’s heading,” Mr Mather said.
Despite tough times, the Hunter remains the beating heart of the state’s mining sector, accounting for $5.9 billion or 43% of direct expenditure by mining in NSW. 
Mining’s connection to Sydney is growing stronger each year, with expenditure in the Sydney region increasing to $3.3 billion in 2013/14, accounting for 25% of the state’s total.    
“Most people don’t realise that Sydney is a significant mining region, but the reality is that there are many suburbs of Sydney, particularly in Western Sydney, that benefit from mining,” NSW Minerals Council CEO, Stephen Galilee said today.  
“For example, the local government area of Parramatta (LGA) received $411.5 million in direct mining spending on purchases from local supplier businesses.  These include numerous manufacturing businesses that produce valuable components used in mining.  Businesses in the Fairfield LGA received $226.7 million, businesses in Camden received $165 million and businesses in Auburn $112.5 million.”
“Lost mining jobs and fewer mining supply businesses show that when mining is hurting, the rest of the economy hurts too. Yet despite the tough times, our sector continues to be an essential pillar of regional economies across NSW, contributing 28% of Gross Regional Product (GRP) in the Hunter, 14.4% in the Illawarra, and 12.1% in the Central West of NSW.”
“So let’s support mining to keep our sector strong. Because with the right policy settings we can manage our short term challenges and deliver more jobs, more opportunities, and better times for our mining communities over the long term.”
A complete copy of the survey results can be found here

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