The Relationship Between Mining and Socio-Economic Well-Being in AustraliaÆs Regions

This paper examines the statistical relationship between quality of life indicators and the gross value of mineral production from Australian regions. We used quality of life indicators, aggregated for 673 local government areas, of household income, housing affordability, access to communication services, educational attainment, life expectancy and unemployment. We find no evidence of systematic negative associations between quality of life and the gross value of minerals production. Instead, mining activity has a positive impact on incomes, housing affordability and communication access across regional and remote Australia. Whilst we do not establish causality between mining activity and quality of life, our analysis prompts a rethink of the æresource curseÆ as it applies within a single country. Nevertheless, our findings are tempered by extensive anecdotal and empirical evidence of the negative social impacts of mining on specific demographic sectors, localities, families of fly-in, fly-out mining operations and individuals. This contrast may be a scale issue, with the regional benefits of mineral wealth masking highly-localised inequalities and disadvantage. We suggest that there is a need to better understand these impacts and, more importantly, the types of policy mechanisms government and industry can adopt to mitigate or avoid them.