Government geoscience data and analysis supports $76 billion of added value to Australian economy
A new study has identified that work undertaken by Geoscience Australia and state and territory geological surveys is leading the way for the nation to become a global renewable energy superpower – and adding significant value to the government’s coffers.
The new report by Deloitte Access Economics found that the efforts of the nation’s leading government-backed resource exploration bodies had created $76 billion of added value to the Australian economy and around 80,000 full time equivalent jobs in 2021-22 alone.
In what the report’s authors described as conservative estimates, the study found that precompetitive geoscience data and analysis production led to $71 million in added value and supported 432 full time employment (FTE) jobs.
It was also estimated that the use of precompetitive geoscience data and analysis for resource exploration had created $5.5 billion in added value and supported 24,361 FTE jobs.
Finally, the use of precompetitive geoscience data and analysis for resource extraction (including non-ferrous metal ores and oil and gas extraction) had added $70.5 billion in value to the economy and supported 55,549 FTE jobs.
The new data comes from surveys of industry use of precompetitive geoscience data, as well as analysis over the last three years.
Significant opportunities still available
Federal Minister for Resources and Northern Australia, Madeleine King, said there is still significant upside available for miners and petroleum companies.
The Minister noted that up to 80% of the country is under-explored and that the Australian Government is ready to help facilitate the discovery of materials essential for the global clean energy transition.
“Our government knows that the path to net zero runs through the resources industry. That is why providing the sector with the tools they need to make exploration and discovery as easy as possible is essential,” Minister King said.
“Locating the minerals the world needs right now to produce clean energy technologies such as wind turbines, solar panels and electric vehicle batteries has never been more urgent.”
Big odds against discovery success
However, the Minister also noted that finding the next big mine or oil field is no easy task.
“Given the odds of making a successful discovery during exploration are estimated to be around 1 in 1,000, providing better information through government funding for new data and analysis allows us to improve those odds and reduce ecological disturbances through better targeted exploration.”
“Precompetitive geoscience data and analysis has supported projects that have generated close to $3.7 billion in royalty payments for the year 2021-22 and 3.5% of Australia’s GDP.”
“That economic impact has been felt right across the country.”
Nation wide resources boost
The Deloitte Access Economics study confirmed that the resources sector has had a major economic impact across the nation,
In 2021-22, the resources sector added $40.2 billion to the Western Australia economy, followed by Queensland with $19.3 billion, in the Northern Territory $5.5 billion was added, Victoria $4.0 billion, South Australia $3.6 billion, New South Wales $3.2 billion and Tasmania $0.2 billion.
Minister King said the government is moving to ensure that the economic momentum continues.
Exploring for the future
She highlighted Geoscience Australia’s Exploring for the Future (EFTF) program as a “shining light of precompetitive geoscience data and analysis.”
“The Exploring for the Future program is Australia’s largest investment in precompetitive geoscience data and analysis and uses a wide range of methods to map Australia’s mineral, energy, and groundwater resource potential, revealing exciting opportunities to make new discoveries,” the Minister said.
“Since 2017, precompetitive geoscience has resulted in the uptake of 825 new tenements across Australia by 110 companies.”
Data has critical input
The authors of the report stated that government precompetitive geoscience data and analysis is a critical input for efficient and effective resource discovery and extraction.
Precompetitive geoscience data and analysis refers to geological, geophysical, geochemical, and other types of data collection and analysis.
The report said this data is used to identify areas with the greatest resource potential, acting as a stimulus for resource exploration activity.
The report concluded that without this data, resource exploration in Australia would be more expensive and riskier, reducing the global appeal of Australia as a resource exploration destination.