Mining companies injected $790 million into the Maitland economy last financial year, new figures from the NSW Minerals Council show.
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The finding represents a $124 million increase from the previous financial year and represents about a 48 per cent share of the local government area’s gross regional product for 2015-16.
The peak body for the mining sector will release its latest expenditure survey in the coming weeks, which will outline economic activity for the period.
In a statement sent out last week, the Minerals Council partly attributed the “significant boost” to an increase in mining spending and a rise in the number of direct jobs in the sector.
The statement also said the survey looked at the sector before a “dramatic recovery” in coal prices that has since led to increased activity and confidence in mining.
“It’s great to see this big increase in local mining spending in Maitland result in more local jobs and an increase in spending with local businesses in the supply chain,” NSW Minerals Council CEO Stephen Galilee said.
“These survey results are tangible evidence of the positive contribution that responsible mining can make to local communities.”
The survey also showed an extra 168 Hunter mining jobs had been created in 2015-16 compared with the previous financial year, with 1915 full-time employees on record.
The sector paid $266 million in wages and spent $524 million across 472 Hunter businesses.
Maitland Business Chamber president Craig McGregor said the news was “a great boost” for the local economy at a time of transition for the Hunter as the region looked to future industries of which to take advantage.
“We are still reliant on that industry and you could tell the year before that the economy was slowed and confidence was slowed,” he said.
“You can really feel it now in all sectors – retail, professional services and other sectors that flow-on occurs. When the mining industry is buoyant and there is money being spent then that flows through to the other sectors. For us, that’s a great result.”
Fairfax Media reported last week that the mining sector directly injected $591 million into the Cessnock economy in the 2015-16 financial year.
Nick Bielby
Nick Bielby is a crime reporter who has been with the Newcastle Herald since 2017.
Nick Bielby is a crime reporter who has been with the Newcastle Herald since 2017.
