Economic assessment for Queensland mine project

Background

NineSquared was engaged by Epic Environmental to prepare an economic assessment for a Queensland mine as part of a federal environmental approval process.

Epic Environmental is a specialist environmental consulting firm who assist clients with environmental strategies and approvals in a range of sectors including resources.  As part of a major project’s environmental approval process, the State and/or Federal Government is required to assess the social and economic impacts of the development of the project.  Accordingly, NineSquared’s economic report covered the broad benefits and adverse impacts to the community associated with the proposed development and provided a detailed economic assessment of impact of the project.  This assessment included the expected contribution to overall revenue generated to the economy, and the number of full-time equivalent (FTE) positions created by the project. It also quantified the impact on the local communities in terms of the impact on schools, education and health facilities.

Our role

NineSquared’s assessment involved gathering details of how the mine would be developed and operated and quantifying its impact across a wide range of areas including of jobs, population growth, expenditure on goods and services by both the mine and its employees and housing requirements. These impacts were assessed both in aggregate and relative to existing expenditure in the region. The analysis showed that the development of the project in the nominated region will have a range of positive benefits as well as social costs.  Some of the potential adverse impacts include increased burden on the health and education systems arising from increases in local population, as well as housing availability and commercial business and property.  However, consultation with the local community indicated that through appropriate mitigation measures then overall the benefits of development will outweigh the potential costs.  Social benefits included increased jobs both in mining, related industries and in the community as a whole, and increased expenditure on services in the community (such as retail, food and beverages, entertainment). Overall, the project was found to have a net benefit and the report was included in Epic’s environmental assessment of the project and that was submitted to the government for approval. As a result of the assessment a mining lease was granted to develop the bauxite deposit and initial development of the site began. Subsequently the price of bauxite declined the development was put on hold.

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