PERTH (miningweekly.com) – Data released by the Chamber of Minerals and Energy for Western Australia (CME) has shown that the mining and resources sector contributed A$100-billion to the Australian economy.
The CME said on Monday that an analysis of 56 Western Australian resources sector companies has found the state’s mining, oil and gas, energy and contractor industries contributed a direct A$100-billion to Australia’s economy in 2020/21 and directly provided more than 70 000 full-time jobs.
CME director of policy and advocacy Rob Carruthers said the data provided a telling snapshot of the day-to-day impact of the Western Australian mining and resources sector on economies and communities across the country.
“It’s well-acknowledged that the past couple of years have involved some significant challenges for our sector, including the management of Covid-19 and ongoing skills and supply chain constraints,” Carruthers said.
“CME is extremely proud of the way Western Australian mining and resources have been able to operate both safely and effectively during the pandemic, and we’re extremely grateful for the hard work, professionalism and dedication of our workforce.
“They haven’t just got the job done, they’ve doubled down when the sector needed them most, and this economic contribution data reflects that.
“The results of this survey capture only a snapshot of our members’ direct contribution, so the ‘total’ sector-wide figure to the broader economy is likely to be significantly more than the A$100-billion.”
A survey of CME members found that more than A$52-billion was spent on purchasing goods and services, while more than A$12.6-billion was spent on wages and salaries, more than A$10.9-billion was paid to the state government, and more than A$24.2-billion was contributed to the federal government.
The analysis also found supply chain spending by the 56 companies created an additional 493 852 full-time jobs and generated A$78.43-billion in gross value add to the Australian economy.
The CME said that some of this value add is created through the sector’s demand for construction, exploration, mining support, financial and other goods and services. It is estimated through all this activity, these companies helped contribute around 8% of gross regional product to Australia’s economy.
“With more than A$127-billion of projects under development in the WA resources sector pipeline, these types of contributions should continue to flow through for decades to come,” said Carruthers.
“We’re very appreciative of the significant amount of collaboration that has helped us operate safely during the pandemic, including working with government, health authorities, police, aviation and port partners.
“We look forward to continuing to work with them, as we look to tackle key shared challenges like current and future skills shortages.”