In 2023-24, Victoria's minerals sector injected $570 million in direct spending into the Victorian economy comprising $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 to deliver vital services to Victorians.
The new MCA commissioned Economic Contribution Survey of Victorian mining companies shows that Victoria's mining industry is growing and making a significant contribution in high wages, support for local businesses and taxes.
The survey highlights the facts on mining.
Mining is a high wage regional industry with an average wage of $122,000 per annum in Victoria.
Mining buys local and supports Victorian businesses, many in regional areas, with three quarters of all spending on goods and services with Victorian businesses.
Mining contributes more than any other industry in Australian taxes with over $40 million in Victorian state taxes and regulatory fees. Victorian mining pays more than $200 million in Australia wide taxes.
More than $2 million was spent on community contributions across community programs in regional Victoria.
Spending increased significantly by $60 million since the last survey in 2021 as Victorian mining grows and new mines are approved to spread the benefits of mining to mineral sands rich regions.
Mining uses less than 0.2 per cent of Victoria's land but generates $1 billion in value to the state directly injecting $330 million in regional communities in wages, local business support and community grants.
Most spending is in regional communities in wages, local business support and community grants.
Central Victoria enjoyed the biggest economic impact from the minerals sector with over $214 million spent in the region in 2023-24, $90 million in resources rich Western Victoria and benefits were spread to Melbourne businesses with almost $200 million spend in Melbourne.
Regions with a mine benefit the most. Greater Bendigo hosts two mines and had the largest amount of direct expenditure with 443 local businesses, and $96.2 million in wages to 775 direct fulltime employees making mining one of the largest employers in Bendigo.
There are few businesses that can bring the jobs, local business support and taxes that a mine can in a regional area, but Victoria needs to improve investment timeframes and certainty of process to fully benefit from Victoria's critical mineral and gold resources.
The report is a reminder that Victoria needs a bigger mining industry and more diverse regional economy to grow the economy and fund essential services for Victorians.
