Mining

Information on this page:INVEST-Mining

Industry Overview

Industry Profile

Trends & Opportunities

 

Industry Overview

The Central West has a strong mining industry which is an important contributor to the regional economy in terms of GRP and employment. Future prospects for the sector are bright given excellent prospective geology, quality infrastructure, a highly skilled local workforce and anticipated increased future demand for minerals.

Gold and Copper Mining

Cadia Valley Operations (CVO), is one of Australia’s largest gold mining operations, located near Orange. The site contains 3 mines producing predominantly gold and copper. CVO is wholly owned and operated by Newcrest Mining Limited. The majority of production from CVO mines is transported by rail to Port Kembla for shipment to smelters in the East Asia region, primarily Japan and South Korea. For further information visit: http://www.newcrest.com.au/our-business/operations/cadia-nsw/

The Northparkes mine is located 27 kilometres north west of Parkes and is a joint venture between China Molybdenum Co., Ltd (CMOC) (80%) and the Sumitomo Groups (20%). Northparkes high-grade copper concentrate is transported by road train and rail to Port Kembla where it is primarily shipped to Japan, China and India.  For further information visit: http://www.northparkes.com/about.aspx

The McPhillamys Gold Project, located near Blayney is owned by Regis Resources Ltd, an Australian gold production and exploration company. This project is currently awaiting a final investment decision for the construction phase. For further information visit: http://www.regisresources.com.au/General/about-regis-test.html

Coal production

The majority of coal mining is situated in the Lithgow LGA with a significant presence  from Centennial Coal and other major producers including Coalpac, Xstrata and Energy Australia. Japan is the largest export destination for coal from the Lithgow region, followed by China, Korea and Taiwan.

Source: NSW Central West Region Export/Import Contribution Study, 2014

 

Industry Profile

Mining is an important sector within the Central West, providing many jobs and stimulus for new investment.

The Mining sector’s Gross Regional Product Contribution is $2.1 billion, accounting for 21.9% of the region’s GRP, significantly higher than the State average (3.1%).

The Mining sector employed approximately 3,620 residents in 2011 representing 4.9% of the total workforce.

Download the Mining Industry Profile 2015

 

Industry Gross Regional Product Contribution

GRP Icon$2.1 billion

The Mining sector accounted for 21.9% of the region’s GRP, significantly higher than the State (3.1%) average.

 

Import Value

Import Icon$282 million

The import value of the Mining  sector represented 6.7% of total imports.

Specific Mining SectorValue of sector Imports
2009 -10 $m
% of Total Imports
Exploration and Mining Support Services$2826.7%

 

Export Value

Export Icon$2.6 billion

The export value of the Mining  sector represented 38.8% of total exports.

 

Businesses

Business Icon78

Business entities are actively trading in the Mining sector.

 

Employees

Employees Icon3,620

People are employed in the Mining Sector.

Sources: ABS, NIEIR, A.P. SHEERE CONSULTING, NSW Central West Region Export/Import Contribution Study, 2014.

 

Trends & Opportunities

Industry trends suggest continued growth in the Mining sector although this will depend on commodity prices and global conditions. Potential Mining sector opportunities within the Central West include:

  • Exploration and mining support services is the second most prominent import in the report and a prime candidate for import replacement.
  • Strengthening of the local supply chain will help to reduce imports.
  • Export growth opportunities exist as Asian economies expand and the demand for mining and energy resources increases.

Source: NSW Central West Region Export/Import Contribution Study, 2014