2015/16 NSW Minerals Council Expenditure Survey

February 28, 2017

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The NSW Minerals Council’s latest Expenditure Survey has found that the 23 participating
mining companies directly injected $10.8 billion into the NSW economy in 2015/16,
highlighting mining’s massive ongoing contribution to the State economy.
 
The survey covers the last financial year, prior to the dramatic recovery in commodity prices
that has since boosted activity and confidence across the mining sector.
 
The $10.8 billion in direct spending in 2015/16 included $2.6 billion in wages to 20,990
full-time employees with $6.9 billion spent on purchases of goods and services from 8,078
local businesses, community contributions, and payments to local government. $1.3 billion
was spent in taxes to the NSW Government, including royalties.
 
Despite covering a period when the industry was experiencing a cyclical downturn the level of
direct spending by NSW mining companies was only slightly down on the previous year, and
higher than the spending levels recorded in the same survey four years earlier.
 
In further encouraging signs for the NSW mining sector, there was a nearly 5 per cent
increase in the number of NSW supplier businesses in the NSW mining supply chain during
the survey period.
 
Total direct mining spend in the Sydney region was again strong at $2.4 billion in 2015/16,
accounting for 23 per cent of the state’s total mining spend. This makes Sydney NSW’s
second largest mining region for direct spending for five consecutive surveys.
 
“Most people don’t realise the strong connection Sydney has with mining, but there are many
suburbs of Sydney, particularly in Western Sydney, that are home to hundreds of local
businesses that are part of the mining industry supply chain,” NSW Minerals Council CEO,
Stephen Galilee said today.
 
“For example, the Local Government Area (LGA) of Parramatta received $362 million in direct
mining spending on purchases from 112 local supplier businesses and another $89 million
was spent by mining companies in the Fairfield LGA, up $24 million on the previous year, and
supporting 98 local businesses.”
 
The Hunter remains the beating heart of the state’s mining sector, accounting for $4.8 billion
or 45% of direct expenditure by mining in NSW.
 
This survey, now completed for a fifth year, demonstrates the scale of mining’s contribution
and the importance of mining to the broader NSW economy, as well as the resilience of the
industry during a prolonged period of economic downturn.
 
“While total spending is down slightly on the previous year, it’s still higher than when the
so-called mining boom started in 2011-12. Over the last three years mining has directly spent
$35.7 billion in NSW.”
 
“And with the dramatic improvement in commodity prices since the survey was taken, and
record exports of coal from the Port of Newcastle, mining will continue to make a strong
contribution to NSW, underpinning the strength of our state economy.”
 
“Even with the tough times we’ve experienced over the last few years, the NSW mining
industry has remained resilient. The number of direct mining jobs remains relatively steady at
20,990, representing a relatively small drop over the last three years.
 
“Mining also continues to be an essential pillar of regional economies across NSW,
contributing 24% of Gross Regional Product (GRP) in the Hunter - up slightly on last year -
10.5% of GRP in the Central West, 9.6% in the North West and 7.1% in the Northern region of
NSW.”
 
“This survey confirms that large parts of regional NSW continue to depend heavily upon
mining for local jobs, investment and economic growth. Ensuring the right policy settings for
mining will contribute to regional jobs, more opportunities, and better times for our mining
communities over the long term.”
 
The full results of the Survey will be released in the coming weeks.
 
Contact : Harry Stutchbury | hstutchbury@nswmining.com.au | 0409 758 734 | 02 9274 1419
NSW

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