An analysis of 56 Western Australian resources sector companies has found the State’s mining, oil and gas, energy and contractor industries contributed a direct $100 billion to Australia’s economy in 2020-21 and directly provided more than 70,000 full-time jobs.
The survey asked Chamber of Minerals and Energy of WA member companies how much they contributed and where.
CME Director of Policy and Advocacy Rob Carruthers said the data provided a telling snapshot of the day-to-day impact of the WA mining and resources sector to economies and communities across the country.
“It’s well-acknowledged that the past couple of years have involved some significant challenges for our sector – including the management of COVID-19 and ongoing skills and supply chain constraints,” Mr Carruthers said.
“CME is extremely proud of the way WA mining and resources has been able to operate both safely and effectively during the pandemic, and we’re extremely grateful for the hard work, professionalism and dedication of our workforce.
“They haven’t just got the job done, they’ve doubled down when the sector needed them most, and this economic contribution data reflects that.
“The results of this survey capture only a snapshot of our members’ direct contribution, so the ‘total’ sector-wide figure to the broader economy is likely to be significantly more than the $100 billion.”
The annual economic factsheets produced out of the data show:
- The direct contribution by the 56 CME member companies to the WA economy was more than $61 billion.
- More than $52.5 billion was spent by the companies on purchasing goods and services from more than 18,700 businesses, and financially supporting more than 1100 community organisations and 85 local governments across Australia.
- More than $12.67 billion in wages and salaries was paid to more than 70,000 full-time Australian workers. Those member companies also employed a further 13,177 full-time on-site contractors.
- More than $10.98 billion was contributed in State Government payments, with more than $24.21 billion contributed to the Federal Government.
The analysis also found supply chain spending by the 56 companies created an additional 493,852 full-time jobs and generated $78.43 billion in gross value add to the Australian economy. Some of this value add is created through the sector’s demand for construction, exploration, mining support, financial and other goods and services. It is estimated through all this activity, these companies helped contribute around eight per cent of gross regional product to Australia’s economy.
Because the data has been collected on a postcode basis, the economic contributions of these companies can also be narrowed down to regions, and most State and Federal electorates in WA.
“It’s not hyperbole to say that every community in WA has locals people living there who work in our sector, and local businesses who benefit from and supply goods and services to it,” Mr Carruthers said.
“Both the direct and indirect contributions of CME’s member companies spread far and wide throughout communities around WA and, indeed, across Australia.
“In fact, our sector supports close to one in four full-time jobs in Western Australia and at least one in 16 Western Australian businesses have resource sector companies within their customer bases.
“With more than $127 billion of projects under development in the WA resources sector pipeline, these types of contributions should continue to flow through for decades to come.
“We’re very appreciative of the significant amount of collaboration that has helped us operate safely during the pandemic, including working with government, health authorities, police, aviation and port partners.
“We look forward to continuing to work with them, as we look to tackle key shared challenges like current and future skills shortages.”
The data collected from 56 member companies covers more than 100 operational sites across the State, representing more than 70 per cent of the WA resources sector by production. To view the factsheets, visit cmewa.com.au/media/economic-contribution-factsheets
