STAWELL - Stawell Gold Mines general manager, Troy Cole, has released findings that indicate output from the Big Hill Enhanced Development Project will generate millions of dollars into the economy.
Mr Cole said output from the Big Hill Enhanced Development Project would generate $38 million in net benefit (welfare) gain for the local economy, according to the preliminary economic findings.
"This means the regional community will be $38 million better off during the life of the project based on such things as direct wages, indirect wages and flow on effects to the local economy," Mr Cole said.
"These preliminary economic findings were presented to council in mid-July following questions raised on project benefits for the Stawell community," Mr Cole said.
The Economic Impact Assessment was undertaken by Aither, an independent economic policy advisory firm specialising in water, natural resources, climate change, agriculture and the environment.
Mr Cole said the preliminary findings highlight the economic impacts the Big Hill Enhanced Development Project will have on jobs and the local economy.
"The results have been presented to council and the Stawell business community and showed that the project supported 286 jobs and a net benefit (welfare) gain of $38 million," Mr Cole said.
"In addition, Stawell's economy will have an estimated 4.9 percent increase in Gross Regional Product in the investment phase of the project."
As part of the Environment Effects Statement, an Economic Impact Assessment is required which determines the potential for significant effects on the economy as well as for key industry sectors.
It measures any relevant changes to the economic effects including Gross Regional Product (GRP), income levels, employment, aggregate investment, household consumption and property rental prices. These effects are measured relative to a base case scenario whereby the existing gold mine in Stawell closes.
In summary, the preliminary economic results showed:
* At its peak, the Big Hill Enhanced Development Project will support 286 jobs, consisting of 181 direct and indirect jobs in the Stawell region, 38 jobs in South Western Victoria and 67 jobs in the rest of Victoria.
* A net benefit (welfare) gain of $38 million over the life of the project.
* Stawell's economy will benefit by 4.9% in GRP in the investment phase of the project.
The Big Hill Enhanced Development Project effectively extends the duration of gold mining in Stawell. Without the project, the existing mine will close in 2014 and local economies will need to adjust accordingly. This project will buy time for those affected - such as businesses, suppliers and employees - to transition accordingly.
The impacts are estimates are from a Computable Generalised Equilibrium (CGE) model developed by Monash
University, which uses production and expenditure data from the project to calculate net benefits to the economy.
The comprehensive model selected for the application is capable of simulating the dynamic impacts of major infrastructure projects or mining investments at a disaggregated regional level by using economic statistical data collated by Monash University over many years.
For further information on the project visit www.crocgold.com/bighill or email SGM.firstname.lastname@example.org or facebook.com/bighilldevelopment and Twitter via Stawell Gold Mines @bighillproject