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PERTH (miningweekly.com) – New data by advisory firm Deloitte Access Economics has shown that the mining and mining equipment, technology and services (Mets) sectors contributed 15% of Australia’s gross domestic product in 2015/16, delivering some A$236.8-billion.
The report, which was commissioned by the Minerals Council of Australia (MCA), showed that the two sectors supported some 1.1-million jobs across Australia, accounting for around 10% of total employment.
Further, minerals and energy exports are the primary source of Australia’s export earnings, accounting for 64% of merchandise exports by value in 2015/16, the report said.
While the benefits of mining and Mets activities are distributed across Australia, there are a number of regional areas where the sector makes a particularly significant economic contribution, including the Pilbara region, in Western Australia, where the mining and Mets sectors contribute some A$37.8-billion, or 88% of total regional economic activity, and 93 800 jobs.
In the Bowen-Surat region, in Queensland, the two sectors have a total economic contribution of A$18.6-billion, which represents 63% of total regional economic activity, and employ some 99 700 individuals directly and indirectly.
Further, in the Hunter region of New South Wales, the sectors contributed a total of A$15.2-billion, or 34% of total regional economic activity, and 93 600 jobs.
Deloitte Access Economics further pointed out that Australia’s comparative advantage in mining and Mets not only hinged on innovation, but also on policies that strengthened competition, supported the accumulation of skills and capital and enabled firms to respond flexibly to changing market conditions.
“Supportive and flexible policy settings helped to establish the most recent mining boom; yet, there is now the potential for adverse policy settings to compromise a major source of Australia’s national prosperity and future economic growth,” MCA CEO Brendan Pearson said.
He said that to sustain the economic contribution of Australia’s mining and Mets sectors into the future, governments needed to provide a competitive and fair taxation system, flexible workplaces, openness to foreign investment and affordable and reliable energy.
Efficient approaches to regulation, especially with respect to project approvals, and support for collaboration between the mining and Mets sectors and research organisations was also a necessity.
The report concluded that it was critical that governments pay heed to these key policy areas and initiate reforms where improvement was required, so that the two sectors continued to innovate and grow, helping to secure Australia’s future prosperity.