Mining injects $32bn into QLD economy

A new study has shown mining generated $32 billion for Queensland’s economy, and $7.8 billion for the Brisbane region alone.

The Queensland Resources Council’s sixth annual economic contribution report, compiled independently by Lawrence Consulting, outlined how spending on wages and salaries, and good and services by resources companies was spread amongst the state, divided by federal electorates.

“Resources companies purchased goods and services from over 24,000 Queensland businesses, creating an estimated total value-add worth $64.8 billion and 366,000 full-time direct and indirect jobs around the state while only using 0.1 per cent of Queensland’s land mass,” the QRC stated.

According to the report, despite the mining market slump, Queensland’s resources industry is still responsible – both directly and indirectly – for one in every five dollars in the state economy and one in six jobs.

“This may come as a surprise to some people around Queensland but the money trail in the analysis of federal electorates can’t be denied with direct spending from resources in the electorate of Brisbane greater than that of any other Queensland federal electorate by a significant margin,” QRC chief Michael Roche said.

“Independent economic analysis has calculated that spending from resources directly created 1,809 full time jobs in the Brisbane electorate.

“Despite a slump in commodity prices and the ‘disrupt and delay’ tactics of activist groups, the Queensland resources sector continues to be the lynchpin of the state economy as a generator of jobs, exports, spending and government revenues.”

The resources industry paid approximately $333 million in wages to Brisbane workers alone.

All thirty of Queensland’s federal electorates received expenditure from the mining and energy industry, ranging from $50 million to $7.7 billion.

While Brisbane received the most money from resources, the electorate of Dawson had the highest number of local businesses – with 4535 directly supplying the resources sector – whilst Capricornia has the highest number of resources employees living in the region, with almost 6422 workers living locally.

“Across the state, resources companies paid $2.1 billion in royalties to the Queensland government in 2014-15 – revenue used to pay for essential services such as schools, hospitals and roads,” Roche said.

“But the broader contribution that resources made to jobs and economic activity across the state is still a pivotal part of the economy despite moving out of a record period of spending on capital expenditure on construction into a more normal phase where operational expenditure dominates.”

To see how your region benefits economically from mining, click here to drill down by your electorate.

 

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