NSW mining companies inject $10.4 billion into NSW economy in 2016-17

May 07, 2018

7 May 2018

NSW mining companies inject $10.4 billion into NSW economy in 2016-17

The NSW Minerals Council’s latest annual member company Expenditure Survey has found that the 23 participating mining companies directly injected $10.4 billion into the NSW economy in 2016/17, supporting thousands of jobs and generating further billions in additional spending across NSW, particularly in many regional communities across the state.

“These survey results cover the end of the previous mining downturn and the start of the current recovery, and with over $10 billion spent by the industry during this period it’s clear that mining is a resilient and consistent contributor to the NSW economy,” NSW Minerals Council CEO, Stephen Galilee said today.

The $10.4 billion in direct spending in 2016/17 included $2.9 billion in wages to 22,821 full-time employees with $5.9 billion spent on purchases of goods and services from 6,681 local businesses, community contributions, and payments to local government. $1.7 billion was spent in taxes to the NSW Government, including royalties.

Direct spending in 2016-17 was down just slightly by 3.5 percent compared to the previous year, while the number of direct jobs increased strongly by 8.7 percent.

“The strong improvement in mining jobs revealed in these survey results is good news for mining communities and we’ve seen other evidence that this trend has continued since the survey ended, particularly in our coal mining regions,” Mr Galilee said.

The Hunter region received the largest share of direct spending, accounting for $4.5 billion or 43.4 percent of direct expenditure by mining in NSW.

The Sydney region was once again the second largest mining region for direct spending,  receiving $2.2 billion or 21.4 percent of direct spending in 2016/17.

“While some don’t realise the strong connection Sydney has with mining, many Sydney suburbs are home to hundreds of local businesses that are part of the mining supply chain, particularly in Western Sydney,” Mr Galilee said.  

“For example, 190 businesses located in the Local Government Area (LGA) of Parramatta received $375 million in direct mining spending, and 108 businesses located in the Fairfield LGA received $69.2 million in spending by mining companies.”

This survey, now completed for a sixth year, demonstrates the scale of mining’s contribution and the importance of mining to the broader NSW economy.

The direct expenditure of surveyed companies in 2016-17 is estimated to have contributed 19.1 percent of Gross Regional Product (GRP) in the Hunter, 8.5 percent of GRP in the Central West, 7.2 percent in the Illawarra, 6.0 percent in the North West region and 3.8 percent in the Northern region of NSW.”

“These survey results confirm that much of regional NSW continues to depend on mining projects for local jobs, investment and economic growth. Ensuring the right policy settings for mining will deliver more regional jobs, more opportunities, and better times for our mining communities and regional NSW 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

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