Mining essential to economy

Chris Fraser, Executive Director, Victoria of the Minerals Council of Australia commented on a Latrobe University report released on February 22 on the economic impact of the Bendigo Mining project in the Australian state of Victoria. He said it left no doubt that the mining boom had direct economic benefits for regional Victoria. “This report shows there will be significant economic growth for regional Victoria with huge direct benefits and flow-on benefits. With our State’s mineral endowment developed in conformity with Enduring Value1, as at Bendigo, long-term prosperity for regional Victoria is assured through socially and environmentally responsible mining projects.

The Bendigo Goldfield is centred on the urban area of Bendigo, with a population of 90,000, in Central Victoria 130 km northwest of Melbourne. It has the second largest historical production for a goldfield in Australia (after Kalgoorlie’s Golden Mile) with a total production of 22 Moz of gold. Bendigo Mining’s (www.bmnl.com.au) goal is “to build a great gold mining business at Bendigo for the benefit of all involved.”

Bendigo aims to optimally develop the world class Bendigo Goldfield by

• Commencing gold production by June 2006 at a rate of 120,000 oz/y
• Progressively increase production to exceed 500,000 oz/y by 2012 at a cash operating cost of A$200/oz.

“As the global minerals industry is experiencing a super cycle, now is the time to make sure that Victoria’s mining industry is able to make the greatest possible contribution to the economic, social and environmental well-being of our regional communities,” Fraser said. He said the report estimated that as the Bendigo Mining project ramps up over the next six years annual revenue will grow to an anticipated $330 million per year and the flow-on spending in the region would expand the regional economy by more than $600 million per annum.

It also estimated that the project would deliver around 2100 jobs with 580 employed directly by Bendigo Mining and increase the Bendigo region’s Gross Regional Product by 9%. By 2012 Bendigo Mining plans to be in full production with an estimated output of 600,000 oz/y making it one of the largest gold projects in Australia.

The economic impact assessment was undertaken by the Economic Research Unit of Latrobe University using its REMPLAN model.

1. Minerals Council of Australia, Enduring Value, The Australian Minerals Industry Framework for Sustainable Development, 2004.