Mining contributed A$55.7bn to Qld economy in 2015/16

PERTH (miningweekly.com) – Despite a challenging year for the natural resources sector, the mining industry continues to make a significant contribution to the Queensland economy, having been directly and indirectly responsible for one in every five dollars in the state’s economy and one in every seven jobs, in 2015/16.

The latest publication of the Queensland Resources Council’s (QRC’s) economic contribution report, launched on Thursday, shows that mining contributed an estimated A$55.7-billion to the Queensland state economy, through A$26.8-billion in direct effects and A$28.9-billion in supply chain and consumption effects.

The industry created the equivalent of 309 500 full-time equivalent jobs, or 13.2% of employment in the state in 2015/16.

The sector’s total value-add to the Queensland economy decreased in the past year, with the industry having contributed a total of A$64.8-billion in 2014/15 and supporting 365 866 full-time equivalent jobs, or 15.7% of total employment.

“These results signal the continued transition of the resources sector from an investment phase of record capital expenditure into an operational phase of making sure that this new production capacity is being delivered as efficiently as possible,” QRC CEO Michael Roche commented on Thursday.

Across Queensland, coal continued to be the largest contributor, accounting for 58% of direct spending, followed by the gas sector (23%) and metals sector (15%).

The report found that the industry still generates significant royalties for the Queensland government, with resources companies operating across Queensland paying a total of A$2.2-billion in royalties to the state government, which is equivalent to the wages of more than 36 000 teachers or 32 000 police or 30 000 nurses.

“Over the past seven years the Queensland resources sector has contributed A$476-billion to the state’s economy, including A$217-billion in direct spending, and has supported an average of 374 000 jobs per year.

“The Queensland resources sector remains a tremendous good news story with a strong, ongoing operational future, with our coal and gas sectors well-placed to supply an energy-hungry Asia which is still on a course of rapid modernisation,” commented Roche.

“Our coking coal will continue to provide an essential ingredient into steelmaking while our alumina, bauxite, copper, gold, lead, mineral sands, silver and zinc will be much sought after in a rapidly urbanising Asia.”

He added that Queensland’s expanded export capacity and more competitive cost structures positioned the state well to benefit from the current upturn in commodity prices.

“The Queensland resources sector will continue to play a key role in the prosperity of the state with the fundamental drivers of global demand for high-quality resources remaining strong.”