This report by Deloitte Access Economics, engaged by Geoscience Australia, measures the economic contribution of geoscience data and analysis in 2021–22, based on the economic activity that is known to be supported by this data.
Precompetitive geoscience data and analysis (geological, geophysical, geochemical, and other types of data collection) is created and maintained in Australia through coordinated federal, state, and territory government geological surveys. The data and analysis is made freely available to all as a public good and supports decision making by government and industry. Geoscience Australia is the largest provider of this information.
Government precompetitive geoscience data and analysis is critical for efficient and effective resource discovery and extraction. The data is used to identify areas with the greatest resource potential prior to resource exploration activity. Without the use of this data, resource exploration would be more expensive and riskier, severely reducing the long term output of the resources industry which is the highest value adding industry in Australia.
Economic contribution is measured through value added, which is a measure of contribution to gross domestic product (GDP), and employment supported in full time equivalent (FTE) terms. The report finds that precompetitive geoscience data and analysis supported AUS 76 billion of value added in the Australian economy, equivalent to 3.5% of GDP and around 80,000 full time equivalent jobs in 2021–22.
The final part of the report discusses the important role precompetitive geoscience data and analysis will play in positioning Australia to capitalise on the energy transition minerals boom in support of net zero transition.
The report highlights that the benefits of current precompetitive geoscience data and analysis data production are yet to be fully realised. Due to its availability and quality, precompetitive geoscience data and analysis is well recognised as a key competitive advantage for Australia’s exploration. However, the time lag between the dissemination of that data and analysis and associated exploration costs and discoveries means its role can often be overlooked.
The authors also underscore that the future rapid deployment of clean energy technologies will dramatically increase the demand for energy transition materials (e.g., aluminium, cobalt, copper and lithium). Precompetitive geoscience data and analysis will play an essential role in identifying new opportunities for mineral supply to meet the demand. Energy transition minerals offer the opportunity for sustained, long-term resource industry activity in Australia and for the country to be a global leader in their supply. This will support future jobs and create benefits for all Australians.
In 2021-22, across the value chain, precompetitive geoscience data and analysis supported AUD 76 billion of value added in the Australian economy, equivalent to 3.5 per cent of GDP. This direct economic contribution includes:
The report emphasises that the estimates are conservative. Not all resource industries – particularly iron ore and coal – were considered in the analysis due to data limitations but are understood to be very likely to use precompetitive geoscience data and analysis products.