So if there was any doubt surrounding mining’s significance to the Australian economy, new data released by the ABS will clear up any confusion.
According to the ABS, the mining sector is an integral cog in the Australian economy both now and into the future.
Mining’s share of total Australian industry output has grown from about 4.5 per cent in 2004 financial year to more than 10 per cent in the 2012 financial year.
Compare this growth to manufacturing and its magnitude becomes even clearer.
Manufacturing has fallen from about the 12 per cent mark to below 8 per cent.
In the mid 90s Manufacturing was our largest component in terms of total industry output at around 15 per cent.
Meanwhile, mining’s share of business investment has also increased from less than 13 per cent to more than 40 per cent over the same eight year period.
To put this in context, when manufacturing held the title of Australia’s largest share of business investment, the sector peaked at just over 20 per cent.
Mining now accounts for such a large portion of business investment, its successes and failures are felt around the country, rippling onto a multitude of smaller businesses, from cafés and hotels, to construction companies, and service firms, the majority rely on a healthy mining sector in some way, shape or form.