Resource companies spend $5.49bn on goods and services in Mackay in 2020-2021

One Central Queensland town is second only to Brisbane in terms of the money resources firms dole out to the community. And more money could be on the way.

Rivers of gold are running through Mackay with the Bowen Basin services hub second only to Brisbane in direct expenditure from resources companies.

The Mackay region welcomed $5.49bn in direct spending across 2020-21, well ahead of other mining hubs across the state.

The Isaac region, home to 27 operating coal mines, welcomed $2.12bn in direct spending while Gladstone reaped $2.12bn and the Central Highlands $1.28bn.

The direct spend figure, contained within the Queensland Resources Council’s Local Content Report, is calculated from salary payments with business purchases and community and local government payments to generate an overall picture of the economic contribution of mining and energy firms.

Brisbane sits at the top of the table with a whopping $14.26bn spend.

Across Queensland, the QRC calculates its 59 members, which includes behemoths such as BMA and Bravus, procured $33.6bn in goods and services, with 82 per cent of purchases, or $27.7bn, directed to vendors located within the state.

Direct spend from resources companies across local government areas in 2020-21. Source: QRC

To gather the data, the QRC asked its members to submit annual postcode-based expenditure for goods and services, salaries, community contributions and state and local government payments. The companies also detailed interstate and other international supplier payments or purchases.

The report also suggests the rivers of gold could keep flowing.

Nearly half of QRC member CEOs said they expected to increase their expenditure with Queensland suppliers over the next 12 months, with no CEOs expecting a decrease.

QRC chief executive Ian Macfarlane said the figures illustrated how important the sector was to regional jobs and economies.

“The $27.7bn spent locally in 2020-21 means resources companies operating in Queensland are now spending a record 82 per cent of their total procurement budgets in this state, which is a great outcome,” he said.

“This means the benefits flow through to everyone, from the companies providing and servicing the big mining machinery to the local food store providing catering for functions and conferences that a resources company might host.”

Originally published as Resource companies spend $5.49bn on goods and services in Mackay in 2020-2021