Australia’s mining companies and mining equipment, technology and services (METS) sector have contributed 12.4 per cent of the Australian economy’s value, according to a report from Deloitte Access Economics.
The report, which was commissioned by the Minerals Council of Australia (MCA), found that the mining and METS sector effected $241.9 billion for the Australian economy during the 2019-20 financial year, both directly and indirectly.
Directly, the mining and METS sector provided $145.3 billion in value during the period.
“Australian mining is a global leader in providing the essential elements of modern life while growing the nation’s economy and sustaining regional communities,” MCA chief executive officer Tania Constable said.
“The industry is committed to contributing to the sustained growth and prosperity of current and future generations through the integration of economic progress, responsible social development and effective environmental management.”
An estimated 1.13 million full time jobs were supported by the mining and METS sector during 2019-20, which is equal to 10.8 per cent of total full-time employment.
The mining and METS sector directly supported 483,499 jobs.
Constable said reforms to tax and royalty rates for miners are needed.
“Australia cannot take mining’s contribution to jobs, investment and communities in the future for granted, because when mining is strong, Australia wins,” she said.
“Urgent reforms are needed to deliver internationally competitive tax and royalty rates, faster project approvals and more efficient regulation to attract more job-creating investment in Australia’s mining industry.”
While the report didn’t explicitly outline the contribution of the national quarrying and extractive industries sector, it did acknowledge the breadth of the METS sector which in many instances would encompass both mines and quarries.
“As there is no widely accepted definition of the METS sector, and the scope of industries that supply specialised inputs to the mining sector is wide, a principles-based approach was used to define industries that are heavily focused on supplying the mining industries,” the report stated.
The report was released during the MCA’s Minerals Week, which is its annual opportunity to engage with decision-makers in Canberra.