That’s fewer jobs than the size of the industry’s contribution to the economy would suggest. Across the nation we are investing in record levels of infrastructure. We recognise that exploration underpins the long-term future of Australia’s mining industry. Per Capita GDP (PPP) Australia is ranked 18th in the world (CIA World Factbook 2016). However, as with most primary products, this underestimates the impact of the mining sector. Joint media release with Assistant Minister for Northern Australia Michelle Landry. RICHARD DENNISS: There's a gulf between what the average Australian thinks the mining industry contributes to the Australian economy and what it really does. 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). 60 per cent of the world’s mining related software is written in Australia. Spam Act, Recruitment Process Outsourcing (RPO) Support, Organisation Structure & Position Description Reviews, Department of Industry expects (reported by the Australian, read with subscription), the level of foreign direct investment in Australian mining, Mineral Processing and Engineering Maintenance Recruitment, Trades, Operator and Labourer Recruitment, Employment Dispute Support/Expert Witness. Let’s take a close look at the Australian mining industry in numbers. It requires more investment to create 2 October 2018. The mining sector currently contributes around 8.5% to Australia’s GDP (total output), and employsaround 2% of the workforce (about 220,000 people). Disclaimer - In 2013–14 alone, the Foreign Investment Review Board approved over $22 billion in proposed investments in mineral exploration and development. Elizabeth is well known to many of you from her former role as Chair of Austmine and I’m sure the industry will have productive engagement with Elizabeth and the centre. And beyond our shores, Australia’s resource and energy commodities are supporting the development of nations in the Asia–Pacific region. Today, many of the big names in mining— Alumina, BHP Billiton, MMG Ltd, Newcrest Mining, OceanaGold and Orica—call Melbourne home. As commodity markets adjust, we’re preparing for a new wave of investment in exploration and mining. Australia’s world class resource base and expertise in exploration, mining and processing are a great asset for the nation. Let us know! Australia remains well placed to meet the growing global demand for many resources and energy products driven by the continuing industrialisation of these countries. I now want to turn to the role the Government can play in facilitating the sector’s ongoing success. As you will know, Australia has one of the best METS industries in the world. When the flow on impacts of this expenditure were also considered, the total value added impact rises to $9,153.2 million contributed to the national economy. I have been very impressed by the role your sector plays in a modern economy as an innovative, technology and science-based sector. Updated projections confirm Australia is on track to meet and beat its 2030 Paris target thanks to strong and practical action to reduce emissions by the Morrison Government. It also supports regional economic activity, including supporting local small businesses through sourcing supplies locally. 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 … In 2015, mining services contributed over $90 billion in gross value added to the Australian economy annually. 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. I’d like to acknowledge the representatives from nine different governments who are participating in this conference. 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. Mining is a very real part of many people’s lives: It employs 224,000 workers. We pay our respect to them and their cultures and to the elders past and present. Joint media release with Assistant Minister to the Prime Minister and Cabinet Ben Morton. Contribution of resources to the Australian economy. Australia is the world’s largest exporter of iron ore, accounting for 53 per cent of world trade in 2014. 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. In 2014, using constant exchange rates, Australia's wealth had grown by 4.4% annually on average after the financial crisis of 2007–2008, compared with a … 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. As the Minister for Resources, it is my role to work with the industry to ensure that any debate is supported by the facts. 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. Ten countries among the 20 countries where mining contributes most (highest MCI-Wr score) have moved up one or two steps in the World Bank’s country classification … Copyright © 2020 Mining People International - 1. Composition of the Australian Economy Snapshot. Why does the mining sector get so much attention? In fairness, those were not great years — with the industry having contracted by $9.4 billion on the year before, as commodity prices crashed. ... Industry Share of Output key sectors. You can see the results of some of our other recent polls below! Mining contributes about 8 per cent to Australia’s GDP and around 60 per cent of exports. 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. In job-creation terms, mining is actually on a par with the arts. 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. The industry pays $12 billion a year in taxes and royalties. 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). DSO is most abundant in particula… Up to 2014 the level of foreign direct investment in Australian mining (and related activities) was $265 billion. Mining of course also contributes to VAT and other taxes, the minister said. Output Share by State. 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. Together, these initiatives remove duplication, reduce costs and create greater certainty for investors. 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. In fact, it’s about two per cent of the national workforce. 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. Economic contribution and commodity market outlook The Australian minerals industry remains a pillar of the Australian economy. 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. 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. Australia is the world’s largest exporter of iron ore, accounting for 53 per cent of world trade in 2014. 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. The ABS also reported that coal mining companies in Australia, including Kestrel Coal, have already employed almost 40,000 people. Mining directly employs more than 200,000 people in Australia, with many more people benefiting indirectly, and is particularly important to the economic and social wellbeing of our regional and Indigenous communities. WA has enormous iron ore resources, currently estimated at 120 434 million tonnes (inclusive of reserves). Some surveys even claimed five to nine times this number. We’ll publish the results on our website next month. Table E-1. A global oversupply of key commodities is forecast to lead to subdued  prices over the medium term. Data in this snapshot are the latest available as at 3 December 2020. Home > Frydenberg > Speeches >  Mining and the Australian economy: the Australian Government's priorities for the mining sector, Introductory remarks and acknowledgements. Mining 11%, Finance 9%, Health and Education 13%, Manufacturing 6%, Construction 8%. the contribution of the resources sector to the Australian economy; the challenges and opportunities faced by the sector; and. (Read here, with subscription.). One is for the METS industry—or mining equipment, technology and services; the other is for oil, gas and energy resources. 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 now have free trade agreements with the US, Japan and South Korea, and will soon complete all actions so the China FTA will come into force from 1 January next year. But what does that mean in terms of importance? Site map - Once the indirect economic impact is taken into account, this figure increases to US$171.6 billion. 26 Between 2006 and 2015, the mining services sector grew at an annual rate of 6.5 per cent, creating 150,000 new jobs. 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. Uranium mining is one of the most capital-intensive industrial activities currently undertaken in Australia. The final expenditures generated by the thoroughbred racing industry in Australia are responsible for a direct value added impact of $3,203.5 million. The report, which was commissioned by the Minerals Council of Australia, found the mining and METS sector contributed $236.8 billion in 2015-16. 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. While … ), And, finally, the mining industry is also a significant contributor to the Government’s coffers, too. 27 In addition, the mining services sector exported $15 billion of products and services, and exports represent a significant growth opportunity for the sector. 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. In the last financial year, export earnings from resource and energy commodities totalled $174 billion. 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. As well as being of economic benefit, mining is essential to providing the raw materials upon which modern society depends. There’s been a lot of discussion about taxes – but fo… 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. In 2004, before the last boom, that figure was less than five per cent. That represented 38 per cent of all foreign direct investment in Australia. Your industry is already at the cutting edge of innovation, but we need to keep pushing the boundaries. By comparison, manufacturing employs 889,000 people, construction employs 1.1 million people and 1.2 million work in retail. The METS Growth Centre, METS Ignited, was launched last month to help improve the competitiveness of the resources industry. We have abolished the mining tax and carbon tax. But just how great is the mining industry’s contribution to Australia? Downstream processing sometimes means that production is not counted as mining output, and is instead counted as manufacturing. 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. The export figures are contained in an in-depth federal government report released today by Minister for Resources and Northern Australia Matt Canavan. Elizabeth Lewis-Gray, who was a part of the panel discussion before my speech, is the Chair of METS Ignited. 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. The secto… 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. 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. 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. The country’s economic welfare is very much tied to global growth and can therefore be exposed to the whims of the economic cycle. Mining contributes enormously to the Australian and NSW economy. We are also expanding our Major Projects Approval Agency to provide a simpler, faster assessment and approval process for major projects. How the $43 billion in economic activity is distributed is something the industry does not want to discuss. One of the great benefits of having such a strong mining industry is the job creation it facilitates. But 7 per cent ain't all that much, and if you measure mining by how much of our workforce it employs, it's even less: 2 per cent. We recognise the importance of infrastructure in improving productivity at existing mines and opening up new mining provinces. We are also the second largest exporter of coal, our leading energy export. The Government’s priorities: supporting the resources industry. Australia’s ‘five strong pillar economy’: agriculture April 26, 2015 3.31pm EDT. 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. 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 … They help us deliver infrastructure and services to our communities, including roads, schools and hospitals. Mining booms and busts seem to define Australia’s economic story. The Oil, Gas and Energy Resources Growth Centre is also expected to be up and running by early 2016. 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. It’s because it’s an industry that uses a lot of expensive equipment but doesn’t need that many humans to actually operate them. The country was ranked second in the United Nations 2016 Human Development Index and sixth in The Economist worldwide quality-of-life index 2005. 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. As of May last year, the average yearly wage for those in mining was $124,176, the highest of any industry in Australia. Australia’s free trade agreements are also important for our resources sector. 28 the importance of building on Australia’s strong international reputation as a reliable energy and commodity supplier and attractive place to invest; and. undertaken numerous site visits across Western Australia, Queensland and the Northern Territory. Through these agreements, we are looking to increase trade and investment opportunities in our energy and mining sectors, which will also contribute to sustainable economic growth and energy security in our region. They’re also important for the development of countries in the Asia–Pacific region. From 2003 to 2014, over $400 billion of resources projects were initiated in Australia. We are establishing industry think tanks—known as Industry Growth Centres—which target the growth sectors of the Australian economy. They will connect firms more closely with our scientists and researchers to solve problems, innovate and facilitate access to global supply chains. 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. Simply having abundant resources does not of itself guarantee this prosperity.  Attracting private investment is crucial. But mining wages as a percentage of "contribution" to the economy is 14.2%.  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. Australia's per-capita GDP is higher than that of the UK, Canada, Germany and France in terms of purchasing power parity. Our focus is on creating a business environment that facilitates investment and improves productivity. Australia's coal export destinations have evolved over the past decade as market demand has shifted. Australia’s mining industry is set to deliver a record $250 billion in exports to the Australian economy this year. In addition to creating much–needed high skilled and high paid jobs for regional Australians, it helps build careers and ensures more young people stay in regional communities. I look forward to meeting many of you later today. ... education and mining. The social and economic impacts of gold mining report builds on previous research, including studies by the World Gold Council, to provide an understanding of the socio-economic impacts of the commercial gold mining industry at both a global, national and host community level. But the mining industry, which increased its inventories by easily the largest amount, remains the big dog in the economy. (Although mining projects do employ a lot more people during the construction phase. 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. From 10 December 2020 this website will no longer work in IE11. Distinguished guests, ladies and gentlemen. 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%). Total industry GVA of the Mining industry increased by 21% over the period 2005–06 to 2009–10. the Australian Government’s role in ensuring the sector realises its enormous potential for decades to come. 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. 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