Mine spending boosts economy

$572.8 million injected into the Central West economy in 2016/17.
$572.8 million injected into the Central West economy in 2016/17.

The NSW Minerals Council’s latest annual member company Expenditure Survey has found that the 26 participating mining companies directly injected $572.8 million into the Central West economy in 2016/17, supporting thousands of jobs and generating millions in additional spending across the region.

“These survey results cover the end of the previous mining downturn and the start of the current recovery, and with almost $573 million spent by the industry in the Central West during this period it’s clear that mining is a resilient and consistent contributor to the region’s economy,” NSW Minerals Council CEO, Stephen Galilee said.

The survey found that mining companies in the Central West spent a total of $572.8 million in 2016-17 made up of $393.4 million in wages for 3,549 full-time employees, and $179.4 million in purchases from 872 local businesses, along with community contributions and payments to local government.

There were also 65 more jobs and 139 more businesses in the supply chain across the Central West than a year ago.

This direct spending is estimated to have contributed 8.5 percent of the Gross Regional Product of the Central West economy in 2016-17.

The survey found that direct mining spending in the Parkes Local Government Area (LGA) totalled $58.2 million in 2016-17, including $42 million in wages to 426 full-time employees and $16.3 million in purchases with 143 local businesses.

In the Orange LGA spending totalled $198.7 million in 2016-17, including $95.9 million in wages to 757 full-time employees and $102.9 million in purchases with 188 local businesses.

In the Forbes LGA mining companies spent $10.7 million in 2016-17, including $7.7 million in wages to 100 full-time employees and $3 million in purchases with 43 local businesses.

“This survey, now completed for a sixth year, confirms that the Central West continue to depend on mining activity for local jobs, investment and economic growth. Ensuring the right policy settings for mining will deliver more jobs, more opportunities, and better times for our local mining communities over the long term,” he said.