$5 billion boost for mining sector

The Hunter economy has continued to prosper on the back of investment in our region by the mining resources sector. A quick glance at the projects underway in the coal chain – including the planned expansion by coal companies, the coal loaders and Australian Rail Track Corporation (ARTC) – totals more than $5 billion.

The importance of our coal sector cannot be understated. It directly supports the employment of 15,000 people and indirectly another 50,000 with one in five workers in the Hunter associated with the coal industry. These highly paid people
support the Upper Hunter towns, and their industry supports many of their manufacturing suppliers in the industrial estates at Tomago, Beresfield, Singleton, Muswellbrook and Rutherford.

The coal industry provided $10 billion annually to our export income, $1 billion in royalties to the NSW Government that is returned to the region as roads, schools and hospitals, and contributes several billion dollars per year directly to the
Hunter economy. Community trusts set up by the coal companies support the activities of many community groups that otherwise wouldn’t happen.

Given that more than 80% of Australia’s power comes from coal powered generators we will continue to depend for some decades on coal as our primary source of energy. This, and recent agreement for the execution of long term coal contracts by the ACCC, offers confidence to the Hunter’s mining industry to invest in the Hunter. The community has expectations of the mining sector to meet environmental responsibilities. The Chamber, along with industry and lobby groups, actively campaigned for fair treatment of the mining sector in the Federal Government’s Carbon Pollution Reduction Scheme. Keeping jobs for Australians in mining, while working with government and other groups to develop new technologies to reduce emissions from mining and the generation of coal-fired electricity, is the most useful thing we can do for a global solution to climate change.

The mining industry provides security of employment to the Hunter community. It allows workers to make commitments that provide stability to their families, and businesses to invest and create more job opportunities for Hunter people. It is a vital component of our economy and few families in this region are not connected.

In 2010 it is the backbone of the Hunter economy.

By Peter Shinnick, CEO, Hunter Business Chamber

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