Study on economic potential of mining released

The potential value of mining to the New Zealand economy has again been reinforced following the release of a report by the Minerals Council of Australia this week.

The report – The Economic Contribution of the Australian Mining Sector During the Global Recession – says the rapidly improving strength of Australia’s mining sector during 2009-09 played “a key role in shielding Australia from some of the worst consequences of the global financial crisis”.

The report shows gross value added, industrial production, exports, employment, wages and investment all grew more rapidly in the mining sector than the same indicators for the wider economy during the period.

Acting Straterra chief executive Chris Baker says the report is a timely reminder of the huge economic potential mining offers the New Zealand economy as the Government sifts through the thousands of Schedule 4 submissions it has received.

“It’s all here in black and white – mining can and does provide an important economic platform for growth. The Schedule 4 proposal is aimed at gaining a better understanding of the potential for mining in New Zealand to make a bigger contribution to our economy.”

Mr Baker said mining in Australia remains carefully controlled and that existing New Zealand legislation, including the Resource Management Act, provided the necessary safeguards being demanded by mining opponents.

“The appropriate checks and balances already exist. Ours is a responsible and carefully regulated sector. Handled correctly this opportunity can be a win-win situation for mining and our wider economy.”

About Straterra
Straterra, which was launched in September 2008, aims to provide a united voice for companies working in the oil, gas, aggregates, minerals, metals and coal industries. The sector has annual revenues exceeding four billion dollars and exports of around two billion dollars. Independent studies demonstrate the potential to double these revenues and provide much needed employment in the New Zealand economy.

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