Mining and METS deliver $241.9bn to Australian economy

critical minerals

Australia’s mining companies and mining equipment, technology and services (METS) sector have contributed 12.4 per cent of the Australian economy’s value, according to a report from Deloitte Access Economics.

The report, which was commissioned by the Minerals Council of Australia (MCA), found that the mining and METS sector effected $241.9 billion for the Australian economy during the 2019-20 financial year, both directly and indirectly.

Directly, the mining and METS sector provided $145.3 billion in value during the period.

“Australian mining is a global leader in providing the essential elements of modern life while growing the nation’s economy and sustaining regional communities,” MCA chief executive officer Tania Constable said.

“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.”

An estimated 1.13 million full time jobs were supported by the mining and METS sector during 2019-20, which is equal to 10.8 per cent of total full-time employment.

The mining and METS sector directly supported 483,499 jobs.

Constable said reforms to tax and royalty rates for miners are needed.

“Australia cannot take mining’s contribution to jobs, investment and communities in the future for granted, because when mining is strong, Australia wins,” she said.

“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.”

The report was released during the MCA’s Minerals Week, which is its annual opportunity to engage with decision makers in Canberra.

Hays’ salary guide for the 2021-22 financial year found that a rift between mining employees and employers has emerged in response to salary increases.

Hays found that 57 per cent of mining employees will have increased salaries in their next review.

A total of 57 per cent of mining employees will have increased salaries in their next review, however 42 per cent are slated to have an increase of up to 3 per cent only.

“The value of salary increases is driving a wedge between employers and employees,” Hays Mining regional director Chris Kent said.

“On the one hand, we have over half of mining employers intending to increase salaries in the year ahead, which is a remarkable sign of the confidence employers exhibit today. On the other, professionals say the value of these increases is far less than they deserve.

“This is creating a gap between what employers will offer and employees say they are worth. This divide must be managed sensitively if employers are to retain staff and attract new talent in short supply.”

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.