Mining delivers jobs and spending boost for New England region.

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The New England region’s economy received a significant boost over the 2015-16 financial year with an

increase in mining spending and jobs, according to the NSW Minerals Council’s latest Expenditure Survey.

The survey covers the 2015-16 financial year, prior to the dramatic recovery in coal prices that has since

boosted activity and confidence across the NSW mining sector.

The survey has found that the 23 participating mining companies directly injected $310 million into the

New England region’s economy in 2015-16 – $89 million more than the previous financial year.
 

This $310 million in spending included $111 million in wages for 1,070 full-time employees and $186

million in purchases from 650 local businesses, along with community contributions and payments to local

government.
 

In encouraging signs for the local mining sector, the number of local supplier businesses being supported

by mining increased from 472 to 650 and the number of local mining jobs in the region was also up by 290

from 780 to 1,070. Mining’s contribution to the regional economy also increased from 4.3% of the New

England region’s Gross Regional Product (GRP) to 7.1% in the 2015/16 financial year.
 

Over the last five years, local mining companies have spent a total of $1.6 billion in the New England

North West region.
 

Spending grew solidly across the Local Government Areas (LGA) of Tamworth, Gunnedah and Narrabri.

In the Tamworth LGA, spending by mining companies totalled over $37.7 million, up $9.9 million on the

previous year. This spending included $15.5 million in wages to 171 full-time employees and $22.2

million in purchases with 136 local businesses.
 

In the Gunnedah LGA, spending by mining companies totalled $164 million , up an impressive $38

million on the previous year. This spending included $58 million in wages to 482 full-time employees, an

increase in the number of mining jobs of 68 on the previous year. Spending on purchases with local

businesses also increased by $36 million to $106 million supporting 195 local businesses. Significantly,

mining activity in the Gunnedah LGA now accounts for 52.6% of the region’s GRP , up from 32.1%

in the previous year.
 

The Narrabri LGA also experienced significant growth in mining spending in the 2015/16 financial year.

Total spending by mining companies in the region increased by $33 million on the previous year to reach

$83 million. This spending included $20.2 million in wages to 211 full-time employees, an increase in the

number of mining jobs of 58 from 2014-15. Spending on purchases with local businesses also increased

by $37 million to $60 million supporting 126 local businesses. Significantly, mining activity in the

Narrabri LGA almost doubled in the last financial year, accounting for 20.3% of the region’s GRP.

“This survey, now completed for a fifth year, shows how mining’s contribution has steadily grown in the New England region, with mining now a major contributor to the strength of the region’s economy. The survey also demonstrates the importance of mining to local communities across the region,” NSW Minerals Council CEO, Stephen Galilee said today.   “It’s great to see more local jobs being created and also very pleasing to see more local businesses becoming part of the local mining supply chain and sharing in a big increase in local mining spending. “These survey results are tangible evidence of the positive contribution that responsible mining can make to local communities, delivering jobs, investment and growth, and helping to build the economic strength of the New England region.”   The results of the full survey will be released in the coming weeks.   Contact : Harry Stutchbury