Mining and resources contributes $1.33 billion to Peel economy

A survey of 56 Western Australian resources sector companies has found the State’s mining, oil and gas, energy and contractor industries contributed $1.33 billion to the Peel economy in 2020-21 and directly provided nearly 6200 full-time jobs for residents of the region.

The survey asked Chamber of Minerals and Energy of WA member companies how much they contributed and where.

CME Chief Executive Rob Carruthers said the results showed the extent to which the WA mining and resources sector underpinned economies and communities around the State, and also across Australia.

“It’s well-acknowledged the past couple of years have involved some significant challenges for our sector – including the management of COVID-19 and ongoing skills and supply chain constraints,” Mr Carruthers said.

“CME is extremely proud of the way WA mining and resources has been able to operate both safely and effectively during the pandemic, and we’re extremely grateful for the hard work, professionalism and dedication of our workforce.

“The CME member companies involved in this survey employed 6198 people who lived in the Peel area, and either worked locally or at operations in other parts of the State. These workers were paid wages totalling $1.03 billion. The companies surveyed directly support one in 10 full-time jobs in this region.

“Those companies spent an additional $299.42 million supporting 367 Peel businesses, 93 community organisations in the region, and all five local governments.

“The analysis also found supply chain spending by those companies created an additional 6826 jobs in the Peel region and generated more than $834.68 million in indirect gross value add for local economies. It is estimated all this spend has helped contribute 21 per cent of gross regional product to the Peel economy and supported one in five full-time jobs.
 
“The results of this survey capture only a snapshot of our members’ direct contribution to the Peel economy, so the ‘total’ sector-wide figure is likely to be significantly more than the $1.33 billion.”

Mr Carruthers said the economic benefits generated by Peel operations spread beyond the region.

“There are workers in Perth, Great Southern and the South West who would travel to Peel sites to work,” Mr Carruthers said.

“There are also many businesses headquartered in other parts of the State but which are vital elements of the supply and services chain for operators in the Peel region."

The data collected from 56 member companies covers more than 100 operational sites across the State, representing more than 70 per cent of the WA resources sector by production.