The sector generated A$241.9bn in value-added to the national economy in the latest financial year, representing about 12.4% of the country's economy
The minerals and mining equipment, technology and services (METS) sector provided a significant boost to the Australian economy in the latest financial year, according to a report.
The analysis by Deloitte Access Economics, which was commissioned by the Minerals Council of Australia (MCA), shows that the sector generated 241.9bn ($185.2bn) Australian dollars in value-added to the national economy in 2019-20, representing about 12.4% of the nation’s economy.
MCA CEO Tania Constable described minerals and METS as “powerhouse contributors to Australia’s ongoing prosperity”, with the country heavily reliant on the sector’s exports and the large volume of job opportunities it creates.
“Australian mining is a global leader in providing the essential elements of modern life while growing the nation’s economy and sustaining regional communities,” she added.
“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.”
Minerals and METS sector directly contributed more than $111bn to Australian economy
The report shows that the minerals and METS sector supported an estimated 1,131,450 full-time equivalent (FTE) jobs in Australia in 2019/20, representing about 10.8% of total FTE employment.
It directly contributed A$145.3bn ($111.2bn) in value-added to the Australian economy and supported 483,499 of the country’s FTE jobs.
The sector also outlaid about A$110bn ($84.2bn) in intermediate expenditures, generating an indirect economic contribution to the national economy of A$96.6bn ($73.9bn) in value-added, according to the analysis.
It highlights that 647,950 FTE jobs outside the minerals and METS sector were supported through these flow-on linkages.
“Australia cannot take mining’s contribution to jobs, investment and communities in the future for granted, because when mining is strong, Australia wins,” said Constable.
“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.”