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Coal and mining still carrying Aussie economy

MINING production remains a significant contributor to Australia's economic growth, according to ...

Lou Caruana
Coal and mining still carrying Aussie economy

The ABS said exports (which grew by 4.4%) were the major driver of the March quarter growth rate of 1.1%, contributing 1.0 percentage point to growth.

Increasing exports were driven by mining, which contributed 0.5 percentage points to GDP growth in the March quarter 2016.

Mining production rose by 6.2% from the December quarter 2015 and 11.2% in the year to March 2016.

Minerals Council of Australia CEO Brendan Pearson said the data demonstrate that the mining sector is making efficient use of the large capital stock built up during the investment phase of the mining boom.

“These figures are also a timely reminder that all members of parliament have a responsibility to support sound policy settings – whether on tax and spending, workplace relations or regulatory reform – that encourage investment and improve productivity,” he said.

The University of Wollongong study – which was commissioned by the NSW Minerals Council – found that 23 participating mining companies directly injected $11.3 billion into the NSW economy in 2014/15, including $2.7 billion on wages and salaries to 21,265 full-time employees, and $7.3 billion on purchases of goods and services with 7,694 local NSW businesses.

Mining contributed to Sydney’s $5.3 billion in additional supply chain goods and services purchases and $1.9 billion in wages and salaries.

The Hunter remains the beating heart of the state’s mining sector, accounting for $4.8 billion or 42% of this direct expenditure by mining in NSW.

The ABS also notes that Australia’s largest export industry, iron ore, enjoyed its fifteenth consecutive quarter of production growth. Iron ore mining increased 7.6% in the March quarter and 14.9% in the year to March 2016.

According to the latest Resources and Energy Quarterly from the Department of Industry, Innovation and Science, Australia’s iron ore and gold exports are forecast to increase 8 and 9% respectively in 2015-16, supported by a rapid increase in production in these commodities.

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