
Victoria’s minerals sector has made a significant contribution to the state’s economy in the 2023-24 financial year, according to a new Economic Contribution Survey commissioned by the Minerals Council of Australia (MCA).
The survey reveals that the sector injected $570 million in direct spending into the Victorian economy, highlighting its growing importance and substantial economic impact.
The breakdown of this contribution includes $181 million in wages and salaries, $347 million in purchases of goods and services from 1,700 local businesses, and $42 million in community payments and state government taxes.
This injection of funds has played a crucial role in delivering vital services to Victorians and supporting local economies across the state.
James Sorahan, Executive Director of MCA Victoria, emphasised the sector’s role in providing high-wage employment opportunities, with the average annual salary in the mining industry reaching $122,000.
The industry’s commitment to local procurement is evident, with three-quarters of all spending on goods and services going to Victorian businesses, many of which are located in regional areas.
The survey also highlighted the mining sector’s significant tax contributions.
Victorian mining companies paid over $40 million in state taxes and regulatory fees while contributing more than $200 million in taxes Australia-wide.
This makes the mining industry one of the largest tax contributors among all sectors.
Regional Victoria has been a major beneficiary of the mining sector’s economic activity. Central Victoria saw the largest economic impact, with over $214 million spent in the region in 2023-24.
Western Victoria, rich in resources, received $90 million, while Melbourne-based businesses benefitted from almost $200 million in spending.
The city of Greater Bendigo, home to two mines, experienced particularly significant benefits.
The mining sector provided direct employment to 775 full-time employees, with $96.2 million paid in wages, making it one of the largest employers in the area.
Additionally, 443 local businesses in Bendigo received direct expenditure from mining operations.
Sorahan noted that while the mining industry uses less than 0.2 per cent of Victoria’s land, it generates $1 billion in value for the state.
He also pointed out that spending has increased by $60 million since the last survey in 2021, reflecting the growth of Victorian mining and the approval of new mines, particularly in mineral sands-rich regions.
Despite these positive outcomes, Sorahan stressed the need for Victoria to improve investment timeframes and provide greater certainty in processes to fully capitalise on the state’s critical mineral and gold resources.
He concluded by highlighting that a larger mining industry and a more diverse regional economy are essential for Victoria’s continued economic growth and the funding of essential services for its residents.