Governments at the local, state and national levels derive significant revenues from the minerals industry. These revenues come from a number of sources including royalties, company income tax, income tax paid by those employed in the mining industry, payroll tax, local council rates, fringe benefits tax, rail access charges and port charges.
The NSW minerals industry in 2004-05 will contribute around $1.2 billion directly to government through this suite of payments. That’s more money for schools, hospitals, roads and other services we use every day.
Major developments such as mines are required under NSW planning laws to provide funding to local councils for the impact they may have on local roads and other infrastructure. These contributions can be quite substantial and may add significantly to the overall costs of developing a mining project.
Flow-on employment and investment: The NSW minerals industry generates a significant flow-on effect in other sectors of our economy. For every job created in mining in NSW, another three to four jobs are created elsewhere in the economy. The supply of affordable resources is essential for a number of industries in our economy. They are located in NSW as a direct result of the NSW minerals industry.
Electricity generation: the coal industry underpins our electricity industry, providing the energy source for over 90 per cent of the State’s power. Its low cost enables the electricity industry to provide power to consumers and business at world competitive rates.
Steel: the steel industry in Wollongong is located to draw on the region’s high quality coking coal. That coal combines with iron ore drawn from interstate to produce up to five million tonnes of steel annually. Blue Steel’s Wollongong plant employs around 5,000 people. Many other industries in the Illawarra region owe their existence to the steel industry.
Cement: cement is made from limestone mined around Kandos (north west of Lithgow), in the Southern Highlands and in the Tamworth area. The process for turning limestone into cement requires a significant amount of heat and coal is typically used for this purpose.
Aluminium: NSW has a large aluminium smelting industry which converts alumina into aluminium metal. A major reason for the location of this industry in NSW has been the availability of competitive electricity supplies.