We are also the second largest exporter of coal, our leading energy export. We pay our respect to them and their cultures and to the elders past and present. The construction sector is also the State’s third largest employer, employing 236,100 workers in 2018-19. In several low- and middle-income countries rich in non-fuel mineral resources, mining makes significant contributions to national economic development as measured by the revised Mining Contribution Index (MCI-Wr). The white paper provides a framework to ensure future investment in Australia’s energy resources and enable competitively priced and reliable energy supply. 60 per cent of the world’s mining related software is written in Australia. Per Capita GDP (PPP) Australia is ranked 18th in the world (CIA World Factbook 2016). Following the gold rushes of the 1850s, Victoria evolved into a major hub for mining and mining services, as well as a financial centre for the resources industry. The challenge is to go beyond winning the trust of local communities.  Increasingly, the industry must also convince communities with no direct connection to the resources sector of the benefits of mining to Australia and all Australians.  The fact is, the mining boom delivered a huge boost to living standards of ordinary Australians, not just those that worked in the sector.  Across the economy to 2013 wages grew by 6 per cent more than they otherwise would have done, while household spending was 11 per cent higher – equal to over $100 per week for the average household. the wonderful optimism and resilience of people working in the sector –particularly those living in regional mining communities. It also supports regional economic activity, including supporting local small businesses through sourcing supplies locally. We have abolished the mining tax and carbon tax. The report, which was commissioned by the Minerals Council of Australia, found the mining and METS sector contributed $236.8 billion in 2015-16. Australian and Indian researchers will work together to advance COVID-19 screening and study the future health effects of the virus, after a nearly $4 million investment by the Morrison Government.Â. Across the nation we are investing in record levels of infrastructure. Australia’s ‘five strong pillar economy’: agriculture April 26, 2015 3.31pm EDT. Mining offers significant employment opportunities to Indigenous populations and has been at the forefront in the recognition of Indigenous Australians’ rights and special connections to land and waters. We recommend updating to a modern browser. Thanks so much for taking part in this Mining People Polling/Media Centre poll. In fact, it’s about two per cent of the national workforce. Elizabeth Lewis-Gray, who was a part of the panel discussion before my speech, is the Chair of METS Ignited. Downstream processing sometimes means that production is not counted as mining output, and is instead counted as manufacturing. The minister of finance has pointed out that mining also contributes significantly to personal income tax, in that R15.2 billion was collected from mine employees in pay-as-you-earn (PAYE) tax in 2013/14. Two of these centres are dedicated to the resources sector. The minerals industry is NSW’s largest export industry, accounting for export revenue of $11.1 billion in 2006-07, which is 39% of total NSW exports. Economic contribution and commodity market outlook The Australian minerals industry remains a pillar of the Australian economy. That’s fewer jobs than the size of the industry’s contribution to the economy would suggest. The ABS also reported that coal mining companies in Australia, including Kestrel Coal, have already employed almost 40,000 people. the importance of building on Australia’s strong international reputation as a reliable energy and commodity supplier and attractive place to invest; and. Copyright © 2020 Mining People International - They will connect firms more closely with our scientists and researchers to solve problems, innovate and facilitate access to global supply chains. Australia’s free trade agreements are also important for our resources sector. Taxes and royalties from mining are a major source of income for the national, state and territory governments, with approximately $25 billion in taxes and royalties received in the 2013-2014 financial year. Mining 11%, Finance 9%, Health and Education 13%, Manufacturing 6%, Construction 8%. From 2003 to 2014, over $400 billion of resources projects were initiated in Australia. Home > Frydenberg > Speeches >  Mining and the Australian economy: the Australian Government's priorities for the mining sector, Introductory remarks and acknowledgements. From 10 December 2020 this website will no longer work in IE11. The Australian Government welcomed the Productivity Commission’s final report on, Further NAIF reforms to free up investment options for the north, Productivity Commission backs plans to cut resources red tape, Australia and India partner on COVID-19 research, Projections confirm Australia on track to meet and beat 2030 target. Joint media release with Assistant Minister to the Prime Minister and Cabinet Ben Morton. The Oil, Gas and Energy Resources Growth Centre is also expected to be up and running by early 2016. While … Mining has long been a cornerstone of the Australian economy and the gold rushes were pivotal in the early development of the country. By comparison, manufacturing employs 889,000 people, construction employs 1.1 million people and 1.2 million work in retail. As the Minister for Resources, it is my role to work with the industry to ensure that any debate is supported by the facts. Japan remains Australia's largest destination for thermal coal exports, accounting for around 40 per cent in 2018, although its share has declined from around half … Nearly two-thirds of these resources occur as goethite- and hematite-rich direct shipping ore (DSO) having inherently high iron content (>57 per cent Fe) that was naturally beneficiated by geological processes (particularly weathering) operating on and around specific iron-rich rock units. We have established a $100 million Exploration Development Incentive to support greenfields explorations through tax offsets. Mining is a very real part of many people’s lives: It employs 224,000 workers. New Coalition Government reforms will allow the Northern Australia Infrastructure Facility (NAIF) to commit up to half a billion dollars from its total budget to equity investments that will further speed up new job and economic opportunities throughout the north.  The Australian Government welcomed the Productivity Commission’s final report on Resources Sector Regulation that makes a number of recommendations to improve approval processes by removing duplication and cutting red and green tape. Some surveys even claimed five to nine times this number. They’re also important for the development of countries in the Asia–Pacific region. In fairness, those were not great years — with the industry having contracted by $9.4 billion on the year before, as commodity prices crashed. Let’s take a close look at the Australian mining industry in numbers. Data in this snapshot are the latest available as at 3 December 2020. I’m not surprised it is already a lead sponsor of this conference. Distinguished guests, ladies and gentlemen. I look forward to meeting many of you later today. We live with the legacies of periods of great prosperity, often brought to us by the mining industry — whether it’s on the back of gold, coal or iron ore, from the Goldrush to the most recent iron ore boom. Output Share by State. With more than 6 million Australians volunteering each year (at last count) the value of volunteering to the Australian economy is huge, and growing fast; so fast that it now contributes more to the Australian economy than mining, agriculture, defence and retail industries put together. Mining contributes enormously to the Australian and NSW economy. How the $43 billion in economic activity is distributed is something the industry does not want to discuss. December 13, 2018 Food&Beverage Australia’s food and grocery manufacturing sector is in many respects the quiet workhorse of the national economy. Before I start, I wish to acknowledge the major mine incident that has unfolded in Brazil.  Our thoughts are with the victims, their families and local communities at this time.  I am pleased to see the initial efforts to help the towns and peoples affected by this tragic incident. The final expenditures generated by the thoroughbred racing industry in Australia are responsible for a direct value added impact of $3,203.5 million. After mining, the largest contribution to the Queensland economy in 2017-18 was from the construction industry, accounting for $29.0 billion (or 8.8%). Australia remains well placed to meet the growing global demand for many resources and energy products driven by the continuing industrialisation of these countries. In 2013–14 the Foreign Investment Review Board approved more than $22 billion in proposed investments in mineral exploration and development. The mining sector currently contributes around 8.5% to Australia’s GDP (total output), and employsaround 2% of the workforce (about 220,000 people). Let us know! Since being appointed Minister for Resources, Energy and Northern Australia I have: These early experiences have highlighted: I am committed to the success of our resources sector and I’m very optimistic about its long term prospects.  I understand the enormous contribution mining makes to the prosperity of Australia and many other countries around the world. However, as with most primary products, this underestimates the impact of the mining sector. The export figures are contained in an in-depth federal government report released today by Minister for Resources and Northern Australia Matt Canavan. Today, many of the big names in mining— Alumina, BHP Billiton, MMG Ltd, Newcrest Mining, OceanaGold and Orica—call Melbourne home. It is undeniable that minerals and energy resource development is a key contributor to the Australian economy, and in particular to the state of Western Australia. We are also expanding our Major Projects Approval Agency to provide a simpler, faster assessment and approval process for major projects. The biggest contributor to growth in both the December quarter and in all of 2015 in seasonally adjusted terms was household spending: Of the 0.6% GDP growth in … Since the gold rushes in the mid to late 1800s, when London and New York invested in Bendigo, here in Victoria and Coolgardie in Western Australia, Australia has welcomed foreign investment in resource projects from around the world. The recent ‘mining boom’ has been much discussed in the last 7 years or so and has brought considerable revenue to state and federal governments. But mining wages as a percentage of "contribution" to the economy is 14.2%. Mining contributes about 8 per cent to Australia’s GDP and around 60 per cent of exports. As well as being of economic benefit, mining is essential to providing the raw materials upon which modern society depends. Your industry is already at the cutting edge of innovation, but we need to keep pushing the boundaries. The Government’s priorities: supporting the resources industry. Australia is also a major exporter of aluminium, copper, gold, uranium and zinc. Contribution of resources to the Australian economy. (Read here, with subscription.). It’s great to join you in Melbourne for IMARC 2015 and I’d like to congratulate AusIMM and Austmine on another successful conference. Why does the mining sector get so much attention? Mining of course also contributes to VAT and other taxes, the minister said. The department acknowledges the traditional owners of the country throughout Australia and their continuing connection to land, sea and community. the Australian Government’s role in ensuring the sector realises its enormous potential for decades to come. According to the most recent data available from the Australian Bureau of Statistics, the mining industry was worth $118.3 billion in 2014-15. In the last financial year, export earnings from resource and energy commodities totalled $174 billion. undertaken numerous site visits across Western Australia, Queensland and the Northern Territory. Joint media release with Assistant Minister for Northern Australia Michelle Landry. The resources sector (mining, oil and gas production) contributes around 10% of GDP ($150 billion (Minerals Council of Australia)), and contributes about the same amount to export income, which amount to around 50% of exports. As at 2014, the level of foreign direct investment in Australian mining and related activities was $265 billion, representing 38 per cent of all foreign direct investment in Australia. I now want to turn to the role the Government can play in facilitating the sector’s ongoing success. As you all know, investing in the resources sector is not without challenges. A couple of years later, the Department of Industry expects (reported by the Australian, read with subscription) total resources exports (including mining, oil and gas) to be worth $204 billion in 2017. That investment has come from investors in Canada, the United Kingdom andthe United States, and increasingly from our key commodity trading partners like China, Japan, Korea and India. But such times also present an excellent opportunity for industry and Government to work together – be it supporting innovation or opening new markets for Australian resources. 2 October 2018. ... education and mining. One of the great benefits of having such a strong mining industry is the job creation it facilitates. In 2004, before the last boom, that figure was less than five per cent. GDP From Mining in Australia averaged 21117.91 AUD Million from 1974 until 2020, reaching an all time high of 50830 AUD Million in the third quarter of 2019 and a … Once the indirect economic impact is taken into account, this figure increases to US$171.6 billion. But the mining industry, which increased its inventories by easily the largest amount, remains the big dog in the economy. Australia’s mining industry is set to deliver a record $250 billion in exports to the Australian economy this year. How much does it really contribute to our economy? How can mining be worth so much but employ so few? It requires more investment to create Total industry GVA of the Mining industry increased by 21% over the period 2005–06 to 2009–10. Together, these initiatives remove duplication, reduce costs and create greater certainty for investors. So, yes, there’s a good reason we pay such close attention to the mining and resources sector — and why the coal, gold and iron ore prices are on the TV every night: It’s responsible for a lot of economic activity and a vital part of our economy. We have also lead efforts to enter into the twelve-country Trans-Pacific Partnership Agreement.  This agreement further builds on our earlier achievements – covering close to 30 per cent, or almost $47 billion, of total Australian exports of resources and energy products. 26 Between 2006 and 2015, the mining services sector grew at an annual rate of 6.5 per cent, creating 150,000 new jobs. Up to 2014 the level of foreign direct investment in Australian mining (and related activities) was $265 billion. Regardless, it is beyond question that the industry has given many families a good source of income, which in return, made their lives much better. In fairness, those were not great years — with the industry having contracted by $9.4 billion on the year before, as commodity prices crashed. However, this is not without cost. It remains the Government’s priority that Australia continue to have an investment-friendly environment that facilitates business and your industry’s success. You can see the results of some of our other recent polls below! There’s been a lot of discussion about taxes – but fo… The country was ranked second in the United Nations 2016 Human Development Index and sixth in The Economist worldwide quality-of-life index 2005. Only by genuinely working together can we address misperceptions about the sector and respond to concerted campaigns that seek to erode the industry’s license to operate. Over 50 per cent of companies in Australia’s $90 billion METS sector export their goods and services, with current exports exceeding $27 billion or approximately 30 per cent of the sector’s revenues. Australia’s world class resource base and expertise in exploration, mining and processing are a great asset for the nation. Table 18.2 shows the industry GVA of the Mining industry and its contribution to Australia's GDP in the period 2005–06 to 2009–10. And we need to remember that despite the current challenging market conditions, the outlook for the industry is positive and the benefits of the production phase of the resources boom will continue well into the future. It is part of a suite of energy initiatives being delivered through an integrated national energy policy, which is set out in the Government’s Energy White Paper. We recognise that exploration underpins the long-term future of Australia’s mining industry. However, with new innovations in the global economy, such as the growth in the electric car market, and developments in the renewable energy industry, Australian miners have moved to exploit the country’s vast deposits of minerals like lithium and uranium. In 2015, mining services contributed over $90 billion in gross value added to the Australian economy annually. In the last financial year, export earnings from resource and energy commodities totalled $174 billion. Australia’s largest manufacturing sector comprises companies that typically take produce from the farm and transform it into food and the consumer goods that every Australian needs every day. Table E-1. The secto… While I am talking about challenges and opportunities, let me also say that no-one is more aware than I am that the sector’s social license to operate is increasingly being challenged. We are establishing industry think tanks—known as Industry Growth Centres—which target the growth sectors of the Australian economy. Site map - Research by Deloitte Access Economics reveals that Australian mining companies paid $18.6 billion in company tax in 2017-18, the highest since the mining investment boom in 2011-12. Australia is presently in the midst of yet another minerals boom—exhibited by both high prices for, and record export volumes of mineral commodities, especially iron ore and coal. They help us deliver infrastructure and services to our communities, including roads, schools and hospitals. 27 In addition, the mining services sector exported $15 billion of products and services, and exports represent a significant growth opportunity for the sector. A quadrupling in the value of the mining industry’s physical capital in recent times means it now accounts for about seven per cent of our GDP (our total production of goods and services, or Gross Domestic Product). Economic Contribution of U.S. Mining, 2015 Item Direct Indirect and Induced Total Employment 565,548 1,122,816 1,688,364 Labor Income (billions of dollars) $39.8 $63.9 $103.7 Contribution to GDP (billions of dollars) $100.4 $120.0 $220.4 Taxes Paid (billions of … We have a strong history of welcoming foreign investment in the resources sector and the Australian Government is committed to maintaining an investment policy regime that is transparent, predictable and non-discriminatory. We continue to work to remove duplication between the Australian Government and the state and territory governments with a one-stop shop for environmental assessment and approvals. $204 billion The industry pays $12 billion a year in taxes and royalties. According to the most recent data available from the Australian Bureau of Statistics, the mining industry was worth $118.3 billion in 2014-15. And beyond our shores, Australia’s resource and energy commodities are supporting the development of nations in the Asia–Pacific region. A global oversupply of key commodities is forecast to lead to subdued  prices over the medium term. As of May last year, the average yearly wage for those in mining was $124,176, the highest of any industry in Australia. Uranium mining is one of the most capital-intensive industrial activities currently undertaken in Australia. 28 Australia's per-capita GDP is higher than that of the UK, Canada, Germany and France in terms of purchasing power parity. As you will know, Australia has one of the best METS industries in the world. Australia has also experienced considerable investment from countries such as Switzerland, Brazil and South Africa. Responding to this challenge requires industry and government to work together to ensure the community is well informed, not just at the local level concerning individual projects, but also more widely. the contribution of the resources sector to the Australian economy; the challenges and opportunities faced by the sector; and. With the messy year that was 2020 drawing to a close, we want to know what people in mining think 2021 holds for our industry. Privacy Policy - A $5 billion concessional loan facility will support private sector investment in economic infrastructure in Australia’s north, where much of our resources wealth is based. It’s an industry we hear a lot about, just as part of our daily lives, in ways that people living elsewhere in the world do not. We are committed to cutting red-tape to reduce project delays and costs through a streamlining of approval processes for major resource projects. It’s fitting that IMARC has brought together the global mining community here in my home state of Victoria, the birthplace of Australia’s mining industry. Much like the rest of the economy, the mining industry has had its share of ups and downs over the decades. Both sectors support 1.1 million jobs nationwide – around 10 per cent of overall employment. Our focus is on creating a business environment that facilitates investment and improves productivity. At 5.8 per cent of GDP, the mining industry is one of the largest in Australia, responsible for almost half of the country’s exports and over 242,000 domestic jobs. 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