... education and mining. The country was ranked second in the United Nations 2016 Human Development Index and sixth in The Economist worldwide quality-of-life index 2005. That represented 38 per cent of all foreign direct investment in Australia. 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 countryâs vast deposits of minerals like lithium and uranium. 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. While â¦ The final expenditures generated by the thoroughbred racing industry in Australia are responsible for a direct value added impact of $3,203.5 million. But what does that mean in terms of importance? We are also expanding our Major Projects Approval Agency to provide a simpler, faster assessment and approval process for major projects. In addition to creating muchâneeded high skilled and high paid jobs for regional Australians, it helps build careers and ensures more young people stay in regional communities. You can see the results of some of our other recent polls below! met with many of my international counterparts at the G20 Energy Ministersâ meeting in Turkey and also at the APEC Energy ministersâ meeting in the Philippines; travelled to Japan to hold discussions with government Ministers, officials and senior business leaders with significant investments in Australia; and. That’s fewer jobs than the size of the industry’s contribution to the economy would suggest. In fact, it’s about two per cent of the national workforce. HomeÂ >Â FrydenbergÂ >Â SpeechesÂ >Â Mining and the Australian economy: the Australian Government's priorities for the mining sector, Introductory remarks and acknowledgements. 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 â around 10 per cent of overall employment. Disclaimer - Mining contributes enormously to the Australian and NSW economy. Site map - The report, which was commissioned by the Minerals Council of Australia, found the mining and METS sector contributed $236.8 billion in 2015-16. undertaken numerous site visits across Western Australia, Queensland and the Northern Territory. The Mining industryâs contribution â¦ 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. 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 â¦ 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. In 2013–14 the Foreign Investment Review Board approved more than $22 billion in proposed investments in mineral exploration and development. Weâll publish the results on our website next month. 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. I have been very impressed by the role your sector plays in a modern economy as an innovative, technology and science-based sector. Thanks so much for taking part in this Mining People Polling/Media Centre poll. Together, these initiatives remove duplication, reduce costs and create greater certainty for investors. 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 Iâm very optimistic about its long term prospects.Â I understand the enormous contribution mining makes to the prosperity of Australia and many other countries around the world. (Read here, with subscription.). Composition of the Australian Economy Snapshot. Mining has long been a cornerstone of the Australian economy and the gold rushes were pivotal in the early development of the country. Your industry is already at the cutting edge of innovation, but we need to keep pushing the boundaries. Economic contribution and commodity market outlook The Australian minerals industry remains a pillar of the Australian economy. Iâm not surprised it is already a lead sponsor of this conference. The countryâs economic welfare is very much tied to global growth and can therefore be exposed to the whims of the economic cycle. We have established a $100 million Exploration Development Incentive to support greenfields explorations through tax offsets. 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. We recommend updating to a modern browser. Australia has also experienced considerable investment from countries such as Switzerland, Brazil and South Africa. 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). 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. One of the great benefits of having such a strong mining industry is the job creation it facilitates. It also supports regional economic activity, including supporting local small businesses through sourcing supplies locally. Our focus is on creating a business environment that facilitates investment and improves productivity. According to the most recent data available from the Australian Bureau of Statistics, the mining industry was worth $118.3 billion in 2014-15. The industry pays $12 billion a year in taxes and royalties. the wonderful optimism and resilience of people working in the sector âparticularly those living in regional mining communities. 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 â¦ It is a key large employer in regional areas, the largest source of export revenue and continues to be a world leader in driving productivity-enhancing innovation in mining â¦ Fundamentally, the essentials of life. 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. In fairness, those were not great years â with the industry having contracted by $9.4 billion on the year before, as commodity prices crashed. the importance of building on Australiaâs strong international reputation as a reliable energy and commodity supplier and attractive place to invest; and. Contribution of resources to the Australian economy. Mining booms and busts seem to define Australia’s economic story. Australia's per-capita GDP is higher than that of the UK, Canada, Germany and France in terms of purchasing power parity. A $5 billion concessional loan facility will support private sector investment in economic infrastructure in Australiaâs north, where much of our resources wealth is based. But just how great is the mining industry’s contribution to Australia? Mining contributes about 8 per cent to Australiaâs GDP and around 60 per cent of exports. The recent âmining boomâ has been much discussed in the last 7 years or so and has brought considerable revenue to state and federal governments. The Governmentâs priorities: supporting the resources industry. In the last financial year, export earnings from resource and energy commodities totalled $174 billion. But mining wages as a percentage of "contribution" to the economy is 14.2%. 1. 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. 27 In addition, the mining services sector exported $15 billion of products and services, and exports represent a significant growth opportunity for the sector. Data in this snapshot are the latest available as at 3 December 2020. Two of these centres are dedicated to the resources sector. We pay our respect to them and their cultures and to the elders past and present. How can mining be worth so much but employ so few? I now want to turn to the role the Government can play in facilitating the sectorâs ongoing success. (Although mining projects do employ a lot more people during the construction phase. While I am talking about challenges and opportunities, let me also say that no-one is more aware than I am that the sectorâs social license to operate is increasingly being challenged. 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. 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. The construction sector is also the Stateâs third largest employer, employing 236,100 workers in 2018-19. 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. Theyâre also important for the development of countries in the AsiaâPacific region. Copyright © 2020 Mining People International - As you all know, investing in the resources sector is not without challenges. By comparison, manufacturing employs 889,000 people, construction employs 1.1 million people and 1.2 million work in retail. Mining companies also paid $12 billion in royalties in 2017-18, providing total revenue to Commonwealth and State Governments of nearly $31 billion. 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. 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. We recognise the importance of infrastructure in improving productivity at existing mines and opening up new mining provinces. As commodity markets adjust, weâre preparing for a new wave of investment in exploration and mining. They will connect firms more closely with our scientists and researchers to solve problems, innovate and facilitate access to global supply chains. We are establishing industry think tanksâknown as Industry Growth Centresâwhich target the growth sectors of the Australian economy. Once the indirect economic impact is taken into account, this figure increases to US$171.6 billion. We are also the second largest exporter of coal, our leading energy export. 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. Only by genuinely working together can we address misperceptions about the sector and respond to concerted campaigns that seek to erode the industryâs license to operate. At 5.8 per cent of GDP, the mining industry is one of the largest in Australia, responsible for almost half of the countryâs exports and over 242,000 domestic jobs. Well, the Minerals Council of Australia says the sector has contributed 14 per cent of Australia’s economic growth over the past decade. How the $43 billion in economic activity is distributed is something the industry does not want to discuss. Australiaâs mining industry is set to deliver a record $250 billion in exports to the Australian economy this year. Australiaâs 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. However, this is not without cost. This sector understands better than almost any other that markets move in cycles -the decade-long commodity price surge has ended and investment in new resource projects is winding back to more normalised levels. Joint media release with Assistant Minister to the Prime Minister and CabinetÂ Ben Morton. But the mining industry, which increased its inventories by easily the largest amount, remains the big dog in the economy. 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 â¦ Today, many of the big names in miningâ Alumina, BHP Billiton, MMG Ltd, Newcrest Mining, OceanaGold and Oricaâcall Melbourne home. We have also lead efforts to enter into the twelve-country Trans-Pacific Partnership Agreement.Â This agreement further builds on our earlier achievements â covering close to 30 per cent, or almost $47 billion, of total Australian exports of resources and energy products. Simply having abundant resources does not of itself guarantee this prosperity.Â Attracting private investment is crucial. $204 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. Australia is presently in the midst of yet another minerals boomâexhibited by both high prices for, and record export volumes of mineral commodities, especially iron ore and coal. Let us know! 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. The Oil, Gas and Energy Resources Growth Centre is also expected to be up and running by early 2016. As well as being of economic benefit, mining is essential to providing the raw materials upon which modern society depends. 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. The minerals industry is NSWâs largest export industry, accounting for export revenue of $11.1 billion in 2006-07, which is 39% of total NSW exports. Elizabeth Lewis-Gray, who was a part of the panel discussion before my speech, is the Chair of METS Ignited. 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). Mining 11%, Finance 9%, Health and Education 13%, Manufacturing 6%, Construction 8%. Mining is a very real part of many people’s lives: It employs 224,000 workers. One is for the METS industryâor mining equipment, technology and services; the other is for oil, gas and energy resources. Output Share by State. Per Capita GDP (PPP) Australia is ranked 18th in the world (CIA World Factbook 2016). Mining of course also contributes to VAT and other taxes, the minister said. As of May last year, the average yearly wage for those in mining was $124,176, the highest of any industry in Australia. In 2015, mining services contributed over $90 billion in gross value added to the Australian economy annually. Â The Australian Government welcomed the Productivity Commissionâs 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. In job-creation terms, mining is actually on a par with the arts. The department acknowledges the traditional owners of the country throughout Australia and their continuing connection to land, sea and community. As the Minister for Resources, it is my role to work with the industry to ensure that any debate is supported by the facts. 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. Mining contributes about 8 per cent to Australiaâs GDP and around 60 per cent of exports. 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. We are committed to cutting red-tape to reduce project delays and costs through a streamlining of approval processes for major resource projects. It is part of a suite of energy initiatives being delivered through an integrated national energy policy, which is set out in the Governmentâs Energy White Paper. Uranium mining is one of the most capital-intensive industrial activities currently undertaken in Australia. DSO is most abundant in particulaâ¦ Australia is also a major exporter of aluminium, copper, gold, uranium and zinc. Distinguished guests, ladies and gentlemen. Australia remains well placed to meet the growing global demand for many resources and energy products driven by the continuing industrialisation of these countries. 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. 28 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%). Joint media release with Minister for Resources, Water and Northern Australia Keith Pitt. The export figures are contained in an in-depth federal government report released today by Minister for Resources and Northern Australia Matt Canavan. Downstream processing sometimes means that production is not counted as mining output, and is instead counted as manufacturing. Itâs great to join you in Melbourne for IMARC 2015 and Iâd like to congratulate AusIMM and Austmine on another successful conference. The fact is, in the absence of this investment, Australian resources would remain under-developed â with employment, national income and tax revenues lower as a consequence. the contribution of the resources sector to the Australian economy; the challenges and opportunities faced by the sector; and. Australia's coal export destinations have evolved over the past decade as market demand has shifted. Itâs fitting that IMARC has brought together the global mining community here in my home state of Victoria, the birthplace of Australiaâs mining industry. 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. It remains the Governmentâs priority that Australia continue to have an investment-friendly environment that facilitates business and your industryâs success. 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. Table 18.2 shows the industry GVA of the Mining industry and its contribution to Australia's GDP in the period 2005â06 to 2009â10. 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. But such times also present an excellent opportunity for industry and Government to work together â be it supporting innovation or opening new markets for Australian resources. 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