NSW mining companies inject $14.9b into NSW economy in 2019-2020

The NSW Minerals Council’s latest annual member company Expenditure Survey found the 27 participating mining companies directly injected $14.9 billion into the NSW economy in 2019-20, while supporting tens of thousands of jobs and generating billions in additional spending across NSW, particularly in regional communities.

“Despite the COVID-19 pandemic that gripped the world last year, mining’s contribution to the NSW economy remained strong in 2019-20, with increases in jobs, salaries and the number of local mining supplier businesses in NSW,” NSW Minerals Council CEO, Stephen Galilee said today.

The $14.9 billion in spending by mining companies in NSW during the last financial year represents an increase of $1.2 billion on the previous financial year – a very strong result given the survey period included the first half of 2020 when the impact of COVID-19 was being felt across the economy.

There were almost 27,500 mining jobs supported by our Member Companies in 2019-20, an increase of around 1,300 compared to the previous financial year.

Our member companies also directly spent $10.3 billion in NSW during the last financial year on the purchase of goods and services from almost 8,000 local businesses. This is an increase of around 1,000 in the number of local businesses supported by mining from the previous financial year.

Surveyed companies also spent $94 million in community contributions and payments to local governments and contributed $1.8 billion in taxes to the NSW Government, including royalties.

“The overall improvement in mining jobs during the last financial year highlights the resilience of our industry during tough times and the importance of keeping mines operating while maintaining safety of miners, their families and mining communities across NSW.”

“These results also demonstrate the importance of mining for thousands of small and medium businesses in regional NSW and across Sydney that supply our mines,” Mr Galilee said.

“While some don’t realise the strong connection Sydney has with mining, many Sydney suburbs are home to hundreds of local businesses that are part of this mining supply chain, particularly in Western Sydney,” Mr Galilee said.

This survey, now completed for a ninth year, demonstrates the scale of mining’s contribution and the importance of mining to the broader NSW economy.

“These survey results confirm that much of regional NSW continues to depend on mining projects for local jobs, investment and economic growth.  If mining is to continue to deliver these direct economic benefits to NSW and help with the post-COVID-19 recovery, we need the right policy settings to support our miners, their families and our mining communities over the long term.”

The full results of the Survey will be released in the coming weeks.

Click here to view the tracked data.

Callum Fountain