As part of the Expenditure Survey, the agency surveyed 22 mining companies and found that they invested $13.6bn into the Australian state during the year, up from $12.8bn in the previous year.

During the period, the spending includes $2.9bn in wages and salaries to 21,516 employees and $9.6bn in purchases with local businesses as well as community contributions and payments to local government.

Due to tough margins and business conditions, NSW businesses in the mining supply chain have dropped by 20% to 8,202.

NSW Minerals Council CEO Stephen Galilee said: "Most people don’t realise that Sydney is a significant mining region, but the reality is that there are many suburbs of Sydney, particularly in Western Sydney, that benefit from mining.

"Lost mining jobs and fewer mining supply businesses show that when mining is hurting, the rest of the economy hurts too.

"Yet despite the tough times, our sector continues to be an essential pillar of regional economies across NSW, contributing 28% of Gross Regional Product (GRP) in the Hunter, 14.4% in the Illawarra, and 12.1% in the Central West of NSW."

According to the report, Hunter region accounted for 43% of the direct expenditure in the NSW mining sector, while Sydney accounted for 25% of the total mining investments in the state.