Australian Bureau of Statistics

Rate the ABS website
ABS Home > Statistics > By Release Date
1301.0 - Year Book Australia, 2006  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 20/01/2006   
   Page tools: Print Print Page RSS Feed RSS Bookmark and Share Search this Product  
Contents >> Chapter 16 - Mining >> Economic contribution of the mining industry

ECONOMIC CONTRIBUTION OF THE MINING INDUSTRY

The contribution of an industry to the overall production of goods and services in an economy is measured by gross value added (GVA). Information on the relationship between industry GVA and gross domestic product (GDP) is provided in the Industry Structure and Performance chapter.

Total production of the mining industry measured by industry GVA (in chain volume terms), that is, output adjusted for changes in prices, decreased by 3% between 2002-03 and 2003-04, but more than doubled between 1983-84 and 2003-04 (graph 16.1).

During the period 1983-84 and 2003-04, the largest annual decrease (6%) in production was in 1986-87 while the largest annual increase (18%) was in 1987-88.

Graph 16.1: MINING PRODUCTION(a), Chain volume measures(b)


Table 16.2 shows that mining's contribution to GDP was in the range 4-5% during the period 1999-2000 to 2003-04. Its contribution was the lowest in 2003-04 after falling each year from 2000-01.


Production in the services to mining industry accounts for a small proportion (less than 9%) of total mining production (table 16.2). However, the total value of services to mining may be larger than these figures indicate as some services may have been provided by businesses classified to other industries such as construction or business services.

16.2 MINING GROSS VALUE ADDED AND CONTRIBUTION TO GDP

Units
1999-2000
2000-01
2001-02
2002-03
2003-04
Percentage change from 1999-2000 to 2003-04

Industry gross value added(a)
Mining (excl. services to mining)
$m
29,943
31,894
31,757
31,270
30,313
1.2
Services to mining
$m
2,345
2,769
2,800
3,002
2,825
20.5
Mining(b)
$m
32,269
34,670
34,561
34,272
33,139
2.7
Contribution to GDP(c)
%
4.3
5.1
4.7
4.5
4.1
. .

(a) Chain volume measures, reference year is 2002-03.
(b) Chain volume measures for years other than 2002-03 and 2003-04 are not additive.
(c) In current prices.

Source: Australian System of National Accounts, 2003-04 (5204.0).


The importance of the mining industry in terms of production as measured by total factor income varies across the states and territories. Total factor income is a measure of state production. It is the total payments received by labour and owners of capital used in the production of the goods and services.


Mining production was the largest component of total 2003-04 production in Western Australia and the Northern Territory. It was the fifth largest in Queensland. In other states, manufacturing, and property and business services industries were much larger than mining, and mining was ranked twelfth or lower in terms of production.

Graph 16.3: MINING INDUSTRY CONTRIBUTION TO STATE PRODUCTION(a), Selected states


During the period 1993-94 to 2003-04, the Northern Territory experienced significant changes in the contribution of the mining industry to total state production, varying from 13% in 1998-99 to 32% in 2000-01 (graph 16.3). In 2003-04 the mining industry accounted for 20% of total production in the Northern Territory. The main mining industry is crude oil production which contributed 31% (or $715 million (m)) of the total value of production in the territory (see the Department of Primary Industry, Fisheries and Mines, Northern Territory, <
http://www.minerals.nt.gov.au>, Information and Services, Industry/Mining statistics, 2003-04 Production, table 'Northern Territory Mining Production 2003-04', last viewed 13 October 2005). The value of crude oil production in 2003-04 ($715m) was 45% lower than in 2002-03 ($1,293m).

In Western Australia, the contribution of the mining industry increased from 17% in 1993-94 to 23% in 2000-01, before falling each year to 18% in 2003-04 (graph 16.3). In the period 1993-94 to 2003-04 the contribution of the mining industry to total state production was significantly higher than the production shares of manufacturing, or property and business services industries, the next largest industries. The oil and gas industry was the main contributor to mining production. In 2003-04, the combined value of production for oil and gas accounted for 35% ($9,222m) of the total value of production ($26,351m) in the state including some manufactured and semi-manufactured products like alumina (see the Western Australia Department of Industry and Resources <http://www.doir.wa.gov.au/statistics>, publication Western Australia Mineral and Petroleum Statistics Digest, 2003-04, last viewed 5 August 2005). Most crude oil and condensate and liquefied natural gas (LNG) are produced in the Carnarvon basin where the North West Shelf Project is located. In 2003-04 Western Australia contributed 70% of the crude oil and condensate and 100% of LNG in terms of quantity produced in Australia. The state also produced 98% of the iron ore and almost all of the diamonds produced in Australia.

The mining industry's share of Queensland total production varied between 5-8% in the period from 1993-94 to 2003-04 (graph 16.3). This was two to six percentage points lower than manufacturing industry's share of state production. In 2003-04, the mining industry's contribution to state production was 7%. Industries with a greater share of state production than mining in this year included manufacturing (10%), property and business services (9%), construction (8%) and retail trade (7%). Figures released by the Queensland Department of Natural Resources and Mines indicate that the value of production of fuel minerals was $7,068m in 2003-04 with black coal accounting for 91% ($6,454m) of this value (see <http://www.nrm.qld.gov.au/mines>, table 'Quantity and Value of Minerals Produced in Queensland 2003-04', last viewed 8 August 2005). Queensland is the largest producer of black coal in the country. In 2003-04, it also produced copper, lead and zinc valued at $4,118m.

EXPORTS

Table 16.4 shows the proportion of exports contributed by the mining industry based on exports by industry of origin.

Between 1994-95 and 2004-05 the value of exports from the mining industry has more than doubled. By comparison, the value of exports from the manufacturing industry has grown by 54%. As a consequence, mining's contribution to total goods exported from Australia increased from 22% in 1994-95 to 32% in 2004-05, while manufacturing's share fell from 65% to 53%.

16.4 VALUE OF EXPORTS(a), By industry of origin

Share of total exports

Mining
Manufacturing
All industries
Mining
Manufacturing
$m
$m
$m
%
%

1994-95
14,922
43,795
67,052
22.3
65.3
1995-96
16,476
48,787
76,005
21.7
64.2
1996-97
17,937
48,494
78,932
22.7
61.4
1997-98
21,458
53,301
87,768
24.4
60.7
1998-99
20,171
52,073
85,991
23.5
60.6
1999-2000
23,578
57,982
97,286
24.2
59.6
2000-01
31,912
69,128
119,539
26.7
57.8
2001-02
32,507
69,111
121,108
26.8
57.1
2002-03
31,261
65,810
115,479
27.1
57.0
2003-04
28,565
62,442
109,049
26.2
57.3
2004-05
40,824
67,475
126,483
32.3
53.3

(a) On a 'free-on-board' basis.

Source: ABS data available on request, International trade.


NATURAL RESOURCE ROYALTIES

Natural resource royalties paid by mining businesses are collected by state and Northern Territory governments for mining onshore and up to three nautical miles offshore, and by the Australian Government outside that area. The basis of the mineral royalties varies between states. Some royalties are based on the value of production at mine site, others on sales value, gross proceeds or profit. The rates imposed also vary between commodities.

Onshore and within coastal waters royalties are levied on mineral and petroleum production. State petroleum royalties and Commonwealth crude oil excise apply onshore and in coastal waters. Petroleum produced in offshore areas of Australia (but not including the North West Shelf) is generally subject to an offshore Petroleum Resource Rent Tax levied by the Australian Government. Petroleum royalties and crude oil excise apply to production from the North West Shelf project.

Natural resource royalties expenses include payments under mineral lease arrangements, and resource rent taxes and royalties. In 2002-03 businesses in the oil and gas extraction industry paid a considerably higher proportion of natural resource royalties to sales and service income (15%) compared with those in the coal (6%) or metal ore mining (4%) industries. Natural resource royalties expenses for the oil and gas extraction industry were $2,651m, and for the coal mining and the metal ore mining industry were $1,026m and $722m respectively.

Previous PageNext Page

Bookmark and Share. Opens in a new window


Commonwealth of Australia 2014

Unless otherwise noted, content on this website is licensed under a Creative Commons Attribution 2.5 Australia Licence together with any terms, conditions and exclusions as set out in the website Copyright notice. For permission to do anything beyond the scope of this licence and copyright terms contact us.