Article courtesy of the Advertiser.
THE resources sector contributed more than $10.7bn in direct and indirect spending into the local economy last financial year, equivalent to more than 8 per cent of gross state product, the South Australian Chamber of Mines and Energy says.
SACOME on Wednesday released its latest Economic Contribution Analysis which shows that 15 resources companies employed 7825 people directly in 2021-22, and supported the employment of another 42,832 people.
The announcement comes as iron ore developer Magnetite Mines released a report by BDO EconSearch which predicts its Razorback iron ore project near Yunta would contribute $31bn to the state economy over 30 years. That project, which is currently being proved up by the company, would create 400 permanent jobs and aims to export five million tonnes of iron ore per year for three decades.
Magnetite Mines chief executive Tim Dobson said it was “hard to overstate’’ the impact it would have on the economy.
“Razorback is a massive project, as quantified by this BDO economic assessment, and we see it as the door opener not only to further projects in the Braemar (region), but to an entire new green iron industry for the state,’’ he said.
The SACOME report, which measures the impact on the economy of operations owned by companies including BHP, Santos, Beach Energy and Hillgrove Resources, says $431m was paid to the State Government in royalties and other taxes in the last financial year, and more than $1bn in wages were paid, for an average salary of $113,672.
“The 2021-22 data represents an 81 per cent uplift from the last economic analysis conducted in 2019-20, which recorded $5.9bn in direct and indirect spending and 5.3 per cent gross state product,’’ SACOME said.
The most recent analysis shows the resources sector accounted for 8.3 per cent of GSP, or $1 in every $12 spent.
SACOME chief executive Rebecca Knol said: “The results are testament to the resilience of the sector which has safely operated throughout the Covid-19 pandemic; helping to maintain the economic health of the state despite navigating travel restrictions, lockdowns, absenteeism and supply-chain impacts,’’ Ms Knol said. “Importantly, the data shows the resource sectors contribution to not only regional communities but also inner-Adelaide, with eight of the top ten electorates benefiting from the resource sector located in the metropolitan area.”