Fortescue Metals Group has commissioned an EY report that finds the iron ore industry will continue driving Australia’s future economic growth.
Australia’s iron ore industry contributes relatively more to the nation’s economy than the entire accommodation and food services and information media and telecommunications sectors, according to the new modelling commissioned by Fortescue.
The EY report found that the iron ore industry contributed A$58.7 billion in Gross Value Add (GVA) to Australia in FY19, representing 32% of the total GVA of the resources industry.
Fortescue Chief Executive Officer Elizabeth Gaines said the iron ore industry was well recognised as one of the most significant contributors to the Australian economy: “Australia’s resource sector is the powerhouse of our economy, and at three per cent of GDP the iron ore sector directly contributes 68 cents to the economy per dollar of output with a further 17 cents per dollar indirectly flowing through strong linkages to other industries.
“Modelling of the flow-on employment impact shows that for each full time employee (FTE) directly employed in the industry, an additional 2.15 FTEs are employed in other sectors. Today, the iron ore industry directly employs around 37,000 people and indirectly creates nearly 80,000 additional roles.”
Addressing the Melbourne Mining Club for the first time this week, Gaines also highlighted the need for business to contribute to policy debates around Australia’s future success, both economically and socially.
“For Australia’s resources sector to continue its contributions to societal outcomes, we must focus on the economic success of our business. With more than 80% of Australia’s iron ore exports going to China, it is critical that we in business have a strong voice on the importance of Australia’s relationship with China,” she said.
“Business also needs to actively participate in the important social and policy issues to which we can make a valuable contribution.”