AN annual $130 million injection of wages from Cadia Valley Operations into the Orange economy has ensured the city is getting its share of the mining boom, a forum heard yesterday.
The Central West Economic Update forum heard that while a grim picture was painted for much of the global economy, Orange is in a good position overall.
Cadia Valley Operations (CVO) general manager Tony McPaul said the disposable income of almost 2000 miners was helping to boost many of Orange’s other businesses.
Mr McPaul said a recent survey of miners revealed they spend 79 per cent of their combined annual income of $165 million in the Orange area.
“We pay them well but they don’t mind spending it,” Mr McPaul told the forum.
Bankwest Limited senior economic analyst Tim Crawford told the forum there were many economic challenges facing the global and local community.
He said a lack of consumer confidence had led to household savings growing to around 12 per cent, bringing it to the same levels as during the global financial crisis.
However, overall he said there had been a rise in exports and investment, especially in mining.
“It’s providing a real boost to the overall economy,” Mr Crawford said.
“Orange is relatively well placed to manage what we’re seeing on an international or local level.”
Mr McPaul agreed and said CVO operations had created more than 1889 direct and indirect jobs with many employees still needed in the booming industry.
The planned Cadia East operations will become the largest underground mine in Australia, set to develop into a 27 million tonne a year production.
“$1.95 billion will be spent to develop Cadia East,” he said.
He said the company had approval to mine up to 2031, but the ore body would last around 35 to 50 years.
Mr Crawford said many businesses were now concerned with interest rates and the economy, however he believes good news is on the horizon.
“If international conditions continue to be as volatile as they are we’ll be likely to see another interest rate cut early next year,” he said.