Mining and Heavy Industries

Mining sector 15% of GDP: Report

A report from Deloitte Access Economics has indicated the total economic contribution of Australia’s mining and services sector was $236.8 billion in 2015/16, or roughly 15% of GDP.

The report, Mining and METS: engines of economic growth and prosperity for Australians, considers the mining, and mining equipment, technology and services (METS) sectors.

It was commissioned by the Minerals Council of Australia.

MCA boss Brendan Pearson said the report was evidence the government should do more to support the sectors.

“Deloitte Access Economics further points out that Australia’s comparative advantage in mining and METS not only hinges on innovation; it also depends on policies that strengthen competition, support the accumulation of skills and capital, and enable firms to respond flexibly to changing market conditions,” Pearson said.

“Supportive and flexible policy settings helped to establish the most recent mining boom; yet there is now the potential for adverse policy settings to compromise a major source of Australia’s national prosperity and future economic growth.”

Pearson said governments need to facilitate a competitive and fair tax system, flexible workplaces, openness to foreign investment, affordable and reliable energy, efficient approaches to regulation, and support for collaboration between the mining and METS sector and research organisations.

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