3 Reasons the NSW Minerals Council is Vital to the Mining Industry in Australia
The NSW Minerals Council is the leading industry association representing the minerals industry in New South Wales, providing a united voice for its members. Here are three reasons why the association is so important to the mining industry in Australia.
1. They have the resources to make a difference
Mining has and will continue to be a key economic driver for the state. That’s why the NSW Minerals Council works closely with government, industry groups and business and community leaders to foster a sustainable mining industry in NSW.
The NSW Minerals Council supports the development of a strong and diverse state economy and an effective regulatory framework in which the industry can operate profitably and make a meaningful contribution to the state and the people of NSW.
2. Their members include some of the largest mining companies in NSW
Every year the NSW Minerals Council surveys its members to determine the economic benefits of mining to NSW. The results for 2013-14 will be released in November.
In 2012-13 the survey found that 26 NSW Minerals Council member companies directly spent around $12.8 billion on wages, goods, services and community contributions in NSW. This direct spending included $3.1 billion spent on the wages and salaries of over 23,000 mining workers, and over $9.7 billion in spending on goods and services with over 10,500 local businesses across the state.
When broken down by ABS region, the survey found that direct and indirect mining industry spending contributed around 36 percent of the Gross Regional Product (GRP) of the Hunter, 19 percent of the GRP in the Central West, 30 percent of the GRP of the Far West of NSW, 17 percent of the GRP in the Illawarra and 4 percent of the GRP in Northern NSW.
3. They understand the economic benefits of NSW mining
Mining is an integral part of the economic and social fabric of NSW, particularly rural NSW. Mining has been part of our state for more than 200 years, providing jobs, independence and wealth. No state has played a more prominent role in the history of Australian mining than NSW. Coal mining in Australia began near Nobbys Head in Newcastle in the 1790s, with the first coal shipment leaving Newcastle in 1799.
“It’s true, NSW mining has had a tough 18 months, with a fall in commodity prices, a stubbornly high Australian dollar and uncertainty with regard the NSW planning approvals regime. However, mining does have a bright future in our state and will continue to deliver jobs and economic stability to regional communities across the state,” NSW Minerals Council CEO Stephen Galilee said.
“Our state has some of the best quality coal and minerals in the world. We have an experienced and highly accomplished mining workforce, and the world’s largest coal export port. So while mining in NSW is experiencing short-term challenges, the long term prospects are good, provided we can continue to meet the future demand,” Mr Galilee said.
Copper production from top ten companies to increase by 3.8%
Copper production from the world’s top companies is set to increase by up to 3.8% this year, following a fall of 0.2% in 2020, GlobalData analysis reveals. Last year’s marginal slump saw production drop to 11.76 million tonnes (Mt).
The initial impact of the COVID-19 pandemic on mining operations was immense, however, six of the ten largest copper producers succeeded in increasing output last year. In 2021, copper production from the top ten copper companies is expected to bounce back, rising by up to 3.8%, to reach 12.2Mt, according to GlobalData, a leading data and analytics company.
The highest increase in copper production was by Canada’s First Quantum, which, despite all the challenges, reported 10.4% growth in 2020. The company’s Sentinel mine in Zambia and Cobre Panama were key contributors to this growth. While the latter remained under care and maintenance between April and August 2020, it delivered record production levels during the subsequent months.
Codelco, the world’s largest producer of the red metal used in electric vehicles, also bucked the trend.
Vinneth Bajaj, Associate Project Manager at GlobalData, commented: “Despite Codelco reporting over 3,400 active cases during July 2020, the company achieved 1.2% growth in its production in 2020. The company implemented a four-phase plan, as part of the COVID-19 measures, to ensure the health and safety of its employees, while also avoiding any significant impact to its copper output.”
Although the overall impact was minimal, declines in production were observed from Glencore (8.2%), Antofagasta (4.7%), BHP (3.9%) and Freeport McMoRan (1.3%). Reduced operational workforces due to COVID-19 measures, lower ore grades and production halts due to maintenance were the key disruptors to output during 2020.
The move towards electric vehicles and clean energy from renewables sources such as solar panels and wind turbines has driven the copper price to all-time highs. Copper has been among the best performers over the last month where metals ranging from aluminum to iron ore have surged to their highest prices in years. The rally is being fueled by stimulus measures, near-zero interest rates and signs that economies are recovering from the global pandemic.