New South Minerals Council chief executive Stephen Galilee admits there has been “extremely difficult market conditions” facing the mining industry over the past 18 months.
In his preface to the 2013/14 NSW Mining Industry Economic Impact Assessment that was released earlier this month, Mr Galilee said about 2000 jobs across the state were lost during the year and the losses “are a heavy burden for mining communities and mining families.
About 2000 businesses also fell out of the state’s mining supply chain between 2013 and 2014 as “margins tighten and business conditions get tougher.”
The Central West has not been immune to these losses.
Mr Galilee believes further job losses “resulting from recent poor NSW Government planning decisions will add to this burden.”
“Lost mining jobs and fewer mining supply businesses show that when mining is hurting, the rest of the economy hurts too,” he said.
On the bright side, business spending across the mining industry is up on 2012-13. It is helping mining’s economic contribution remain strong in proportion to other industries.
Of 22 mining companies surveyed for the NSW Minerals Council 2-13-14 study, their contributions totalled $13.6 billion in direct spending – including $9.6 billion purchasing good and services. This is up on the past two year’s figures.
“Our sector continues to be an essential pillar of regional economies across NSW, contributing 28 per cent of Gross Regional Product (GRP) in the Hunter, 14.4 per cent in the Illawarra, and 12.1 per cent in the Central West,” Mr Galilee said.
Among the recent report, Lithgow ($478.8 million), Orange ($464.3 million) and Mid-Western Regional Councils ($588.1 million) all featured in the Top 20 Local Government Areas by value added from the mining industry. In a sign of the times, Lithgow appeared to be the only Central West town to increase its value added total during the past year.
The NSW mining industry accounted for about $800 million in direct spending throughout the Central West in 2013-14. This included employing more than 4000 people directly.
Author: Darren Snyder
Source: Mudgee Guardian on 19th Jan 2015
