Mining and mining related businesses make up 20 per cent of the national economy and the sector is much larger than many people think, a Minerals Council of Australia report says.
The report, commissioned by the Minerals Council and written by economist Ed Shann, said Reserve Bank and Treasury estimates of the size of the mining industry and mining-related sectors were “clearly too low”.
RBA estimates said the mining and mining-related sectors made up 14.75 per cent of GDP in 2010-11, while Treasury estimates said the mining sector would account for 12.3 per cent of total Australian output in 2011-12.
Dr Shann's report said the RBA does not take into account mining services exports and investment or domestic mining output, distorting its figures.
“Because these firms are not identified as a sector by the Australian Bureau of Statistics or the ASX, their importance and rapid growth is often overlooked,” Dr Shann said in the report.
“They represent a cluster of internationally competitive Australian firms in construction, engineering, drilling, manufacturing, logistics and services that produce often high technology products and high value services.”
The report, titled "Maximising growth in a boom", said the mining services sector was growing rapidly, at 15 to 20 per cent per year, with Treasury estimates showing it will expand from 6.7 per cent of the economy in 2010-11 to 9.4 per cent in 2012-13.
Taking into account the mining services sector, mining-related businesses made up 19.5 per cent of GDP in 2010-11, with output tipped to rise to 22 per cent of GDP in 2011-12.
