Mining companies directly injected $6.2 billion into the Hunter economy last financial year, supporting over 13,000 Hunter mining jobs and over 3400 local mining supplier businesses, the NSW Minerals Council's latest annual member expenditure survey shows.
The council's chief executive Stephen Galilee said while the number of mining jobs supported by its 28 member companies was around the same as the previous year, the $6.2 billion in direct spending in the Hunter represented an increase of around $800 million.
In addition, the 3400 mining supplier businesses in the last financial year represented an increase of 126 businesses compared to the previous year.
"These survey results show that despite the COVID-19 pandemic, mining's contribution to the Hunter economy last year remained strong, with jobs relatively stable, more direct mining spending and an increase in the number of Hunter mining supplier businesses," Mr Galilee said.
The results confirm the Hunter's ongoing status as the biggest mining region in NSW.
Member companies directly spent $15 billion in total in NSW in 2019-20.
The $6.2 billion in direct spending in the Hunter was the largest of any region. It is is estimated to have contributed around 28 percent of the gross regional product of the Hunter economy in 2019-20. The figure is up from 23 percent the previous year.
"The overall improvement in the economic boost for the Hunter provided by our member companies highlights the resilience of our industry during these tough times, keeping our mines operating while maintaining the safety of our miners, their families and our mining communities across NSW," Mr Galilee said.
In an opinion piece in Thursday's Newcastle Herald, Mr Galilee argued that the Hunter's economy was well placed to strengthen and diversify.
"For decades there's been agreement on the need to strengthen and diversify the Hunter economy," he said.
"All communities and economies diversify over time. It's a direct result of progress, and most successful when it happens gradually and organically, driven by local innovators and entrepreneurs responding to new and emerging opportunities.
"New opportunities are emerging all the time, and there's a critical mass of innovators and entrepreneurs willing to take risks and seek new opportunities. The Hunter is also fortunate to have a base of well-established and stable local industries with natural advantages that continue to deliver jobs and economic benefits, including the local mining sector."
