Direct Mining Spending Boosts Newcastle and Hunter Economy

February 28, 2017

Mining continues to make a significant economic contribution to Newcastle and the Hunter even during
tough market conditions according to the NSW Minerals Council’s latest Expenditure Survey.
 
The survey covers the 2015-16 financial year, prior to the dramatic recovery in coal prices that has since
boosted activity and confidence across the Hunter mining sector.
 
Despite covering a period when the industry was experiencing a cyclical downturn, the survey found that
the 23 participating mining companies directly injected $4.8 billion into the Hunter’s economy in 2015-16,
the same level as the previous year, and higher than four years ago - an indication of the resilience of the
Hunter mining sector during tough times.
 
This direct spending is estimated to have contributed 25 per cent of the Gross Regional Product of the
Hunter economy in 2015-16, up slightly on the previous year.
 
This $4.8 billion in direct spending in 2015-16 included $1.5 billion in wages for 11,218 full-time
employees, and $3.3 billion in purchases from 3,647 local businesses, along with community contributions
and payments to local government.
 
In further encouraging signs for the Hunter mining sector, the number of local supplier businesses in the
Hunter mining supply chain increased by 230 to 3,647. The number of local direct mining jobs was also up
slightly on last year at 11,218 compared to 11,189 over the previous year.
 
The survey found that direct mining spending in the Newcastle Local Government Area (LGA) totalled
nearly $1.5 billion in 2015-16, including $152 million in wages to 1,175 full-time employees and $1.3 billion
in purchases with 789 local businesses.
 
Over the last five years, local mining companies have spent a total of $26.4 billion in the Hunter region
with $6.4 billion of this spent in the Newcastle LGA alone.
 
“This survey, now completed for a fifth year, demonstrates why the mining industry is such an important
pillar of the Hunter economy, and to communities across the entire Hunter region,” NSW Minerals Council
CEO, Stephen Galilee said today.
 
“The Survey found an improvement in the number of jobs and spending by mining companies in the
Hunter, and since then we’ve seen dramatically improved coal prices and record exports of coal from the
Port of Newcastle. These are all signs of the positive outlook for our industry and the strong economic
contribution mining will continue to make in the Hunter over the long term,” Mr Galilee said.
 
The results of the full survey will be released in the coming weeks.

Mining.jpg
 
Contact : Harry Stutchbury | hstutchbury@nswmining.com.au | 0409 758 734 | 02 9274 1419

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