Mining Industry Holds Largest Slice of Australian Economy
November 3, 2020 - Australia’s mining industry has delivered a 10.4 percent share of the Australian economy in 2019-20, making it the largest economic contributor with a $202 billion GDP, according to The Australian Bureau of Statistics.
The ABS saw 4.9 percent growth in 2019-20, which was attributed to iron ore’s strong year of demand due to international supply issues and increased demand from China. Higher capacity oil and gas extraction facilities also boosted the mining industry.
Mining operating surplus also saw a 7.7 percent rise in 2019-20 due to higher iron ore prices.
The gross value added (GVA) for mining was 11.1 percent in 2019-20, compared to 4.6 percent in 1999-00.
“The Australian minerals industry is a major contributor to investment, high-wage jobs, exports and government revenues in Australia,” Minerals Councill of Australia chief executive officer Tania Constable said.
“There are 240,000 people directly employed by the resources sector and a total of 1.1 million direct and indirect jobs in the mining and mining equipment, technology and services (METS) sectors.
“Growth in mining industry GDP has allowed it to hire new workers while adhering to strict health and safety protocols that have protected people in their workplaces and communities around Australia.”
Constable described the mining industry as a “pillar of stability” in Australia during COVID-19.
“In a year where the nation has been affected by the COVID-19 pandemic, the mining industry has been a pillar of stability,” she said.
“To ensure mining continues to drive Australia’s post-COVID economic recovery governments should support the industry with faster project approvals, competitive tax rates, co-investment in modern skills programs and more flexible workplaces.”