The Victorian mining industry had an economic output of $1 billion in 2020-21, sustaining more than 4700 full-time jobs, according to a report commissioned by the Minerals Council of Australia (MCA).
By analysing the expenditure patterns of five major resource companies, the report from Lawrence Consulting determined $510.1 million had been directly spent by Victoria’s mining sector while the remainder was created indirectly.
Promisingly for the Victorian economy, the survey found that 58 per cent of the spending on goods and services stayed in Victoria.
“Central Victorian businesses were supported by $50.6 million in purchases of goods and services from 520 local businesses, almost $90 million in wages and $2.3 million in voluntary contributions to 38 community organisations,” MCA Victoria executive director James Sorahan said.
The region to benefit most from direct spending was the Greater Bendigo local government area, ($130.2 million), followed by Melbourne ($86.6 million) and the Northern Grampians ($73.7 million).
Sorahan said the report provided good reason to continue the sector’s expansion.
“The impact of a mine on a local economy is overwhelmingly positive by creating high wage regional jobs and spending on local suppliers,” he said.
“The contribution to regional economies demonstrated by this survey can be replicated across regional Victoria as the industry grows and more mines are opened.
“Victoria should aim to have multiple new mines by the end of the decade to make the most of Victoria’s rich resources of gold, mineral sands and base metals to support regional development, diversify Victoria’s economy and supply the critical inputs to modern technology Victorians use every day.”
To read more from the survey, click here.