Contribution of Mining in Australia
Ecoal, June 2010, Vol. 71
The Minerals Council of Australia recently released a study looking at "The Economic Contribution of the Australian Mining Sector During the Global Recession". The report highlights that the rapidly improving strength of Australia's mining sector during 2008-09 played a key role in shielding Australia from some of the worst consequences of the global financial crisis. Gross value added, industrial production, exports, employment, wages, and investment all grew more rapidly in the mining sector than the same indicators for the economy as a whole during 2008-09.
The paper shows that without the strong performance of Australia's mining sector, the economic downturn in the latter part of 2008 and early 2009 in Australia would likely have been much more severe.
Price increases for coal and iron ore over 2008-09 led to a significant increase in Australia's export income during the year, with export income for the sector totalling A$138 billion in nominal terms, or 11% of GDP. The report finds that growth in export values in the mining sector also boosted other economic indicators, particularly in the December 2008 quarter. During that quarter, the Australian economy experienced a decline of 0.9% of GDP. Data indicates that the mining sector was one of the standout sectors during this period - it was the only sector to experience positive growth.
Employment growth in the mining sector during 2008-09 was also far more rapid than in the rest of the economy. Employment in coal and iron ore mining sectors alone grew by 13% over the period, compared to just over 1% for the rest of the economy.
