Mining companies generated $1 billion in value to the Victorian economy in 2020-21 while supporting thousands of jobs and businesses across the state.
Victoria's mines directly injected $510 million into the state economy in 2020-21 by supporting high wage regional jobs and buying more than half their supplies from local business through:
- $152 million spent in wages and salaries;
- $307 million spent on purchases of goods and services from over 1,700 Victorian businesses; and
- Almost $50 million in state government payments.
The Victorian Minerals Industry Economic Contribution Study is the first detailed study of Victoria's growing mining industry to estimate mining's support for the state's economy and specific regions. It is based on a survey of Victoria's five gold mines in Stawell, Ballarat, Bendigo and Woods Point.
Most mining spending stays in Victoria, and particularly in regional communities with operating mines in Central and Western Victoria. The survey finds that 58 per cent of spending on goods and services stays 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.
Greater Bendigo enjoyed the largest amount of direct expenditure amongst all local government areas.
Western Victoria was supported by $42.4 million in wages and salaries and $89.3 million in purchases of goods and services from 445 local businesses.
Victoria's mines are committed to local procurement and tap into Victoria's world class Mining Equipment, Technology and Services sector providing manufacturing, services and high tech mining services globally from metropolitan Melbourne and regional cities such as Bendigo and Ballarat.
The results highlight the economic opportunities a strong mining sector offers Victoria.
The impact of a mine on a local economy is overwhelmingly positive by creating high wage regional jobs and spending on local suppliers.
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.
It is time for Victoria to rediscover mining and make it a priority industry for regional development.
The full report is available here.
