Mining’s economic injection
Anew study into the impact of mining activities across the state has revealed companies have provided $42.4-million in wages to 390 direct full-time resident employees in western Victoria.
It has also shown $89.3-million in the purchase of goods and services from 445 ‘local’ businesses across a region spanning Yarriambiack, Hindmarsh, West Wimmera, Northern Grampians, Southern Grampians, Ballarat, Ararat, Pyrenees, Hepburn, Moorabool and Golden Plains shires.
The figure represents 25.8 percent of the Victorian spend on the industry.
The Victorian Minerals Industry Economic Contribution Study also revealed that Ballarat, Northern Grampians and Ararat attracted the third, fourth and sixth largest amounts of direct spending of all Victorian municipalities respectively in the state.
It comes as planning for major sandmining operations and extensive exploration
for precious metals are well underway in the Wimmera.
Lawrence Consulting prepared the study for Minerals Council of Australia – Victoria division.
MCA Victoria executive director James Sorahan said the report showed mining companies generated $1-billion for the Victorian economy in 2020-21 while supporting thousands of jobs and businesses.
“Victoria’s mines directly injected $510-million into the state economy in 2020-21 by supporting high-wage regional jobs and buying more than half their supplies from local business through: $152-million spent in wages and salaries; $307-million on purchases of goods and services from over 1700 Victorian businesses; and almost $50-million in State Government payments,” he said.
“This is the first detailed study of Victoria’s growing mining industry to estimate mining’s support for the state’s economy and specific regions.
“It is based on surveys of Victoria’s five gold mines in Stawell, Ballarat, Bendigo and Woods Point.
“Most mining spending stays in Victoria, and particularly in regional communities with operating mines in central and western Victoria.
“The survey finds that 58 percent of spending on goods and services stays in Victoria.
“Central Victorian businesses were supported by $50.6-million in purchases of goods and services from 520 local businesses, almost $90-million in wages and $2.3-million in voluntary contributions to 38 community organisations.
“Greater Bendigo enjoyed the largest amount of direct expenditure among all local government areas.”
Mr Sorahan said the report also showed how Victorian mines were supporting Melbourne businesses.
“Victoria’s mines are committed to local procurement and tap into Victoria’s world-class mining equipment, technology and services sector, providing manufacturing, services and high-tech mining services globally from metropolitan Melbourne and regional cities such as Bendigo and Ballarat,” he said.
“The results highlight the economic opportunities a strong mining sector offers Victoria.
“The impact of a mine on a local economy is overwhelmingly positive by creating high-wage regional jobs and spending with local suppliers
“The contribution to regional economies demonstrated by this survey can be replicated across regional Victoria as the industry grows and more mines are opened.”
Mr Sorahan said Victoria should aim to have multiple new mines by the end of the decade to make the most of Victoria’s rich resources of gold, mineral sands and base metals to ‘support regional development, diversify Victoria’s economy and supply the critical inputs to modern technology Victorians use every day’.
The study shows that in terms of total state economic benefit, western Victoria, with $245.8-million, experienced the third-largest economic growth from the sector behind Melbourne and Central Victoria-loddon Murray.