June 26, 2024
MEU members working in coal mining delivered more than $2.3 million each in additional value for the Australian economy in the 2022-23 financial year, according to a new statistical release from the Australian Bureau of Statistics.
This extraordinary figure reflects a recent period of record high coal prices, which reached peaks above US$450 per tonne for thermal coal in the latter half of 2022. While this delivered windfall profits for employers (with the industry-wide profit margin at 48%!), it is worth keeping in mind that the true wealth-creators of the coal industry are the workers operating and maintaining mines over long shifts and in challenging environments.
The data also serves as a timely reminder of the role of the coal industry in Australia’s economy, with the industry adding almost $100 billion value to the Australian economy over the period.
Meanwhile, a slight retreat in profitability compared to the previous year barely dented the outsized role of iron ore exports in the economy. The iron ore industry added $103 billion in value, for a contribution per worker of $2 million.
The mining industry is the first to congratulate itself on its tax and royalty contributions to state and federal government coffers, while simultaneously arguing against the royalty rates and industrial relations policies that would see more of this wealth shared with workers and their communities.
But we know that the real source of mining wealth in this country comes off the back of ordinary MEU members and chronically under-resourced mining communities, not the boardrooms of ASX companies.