Mining and resource development analysis and policy
Supporting decision-making and public planning approvals
Deloitte Access Economics provides policy advice and support to industry using the latest and best-practice methods for economic assessment as required for planning approvals.
Deloitte Access Economics helps our clients to understand the impacts of mining on regional and national economies through:
- Economic impact assessment and cost benefit analysis for proposed mining developments
- Local, regional and social impact evaluation
- Policy analysis and reform
- Economic analysis guidelines for government decision-making.
Deloitte Access Economics has extensive experience in completing economic impact analysis of proposed mining and resource developments. Our work in this area has been facilitated by our comprehensive understanding of the minerals sector, in-house modelling capabilities and proficiency in applying the latest guidelines for economic assessment and associated environmental planning requirements. Our approach provides reliable, high-quality economic analysis to support transparency in decision-making and provide clarity around the benefits and impacts on local and the regional communities.
Economic impact analysis for use in Environmental Impact Statements
Economic impact analysis is a core component of the Environmental Impact Statements (EIS) required for approval of new mining developments. Requirements for EIS vary by jurisdiction and place emphasis on different areas. Our approach and methodology is flexible and applicable to mineral and resource developments in all states and territories. For example, our work in New South Wales applies a combination of cost benefit analysis (CBA), local effects analysis and CGE modelling.
CBA is a systematic process for comparing the costs and benefits of a proposed development. Our CBA model has been used to compare alternative development options within a consistent, reliable framework. The results allow decision-makers to consider the net benefits of a development for Australia, as well as the distributional impacts among different regions and groups in the community.
Our approach to local effects analysis draws on a range of methodologies, including computable general equilibrium (CGE) modelling, to understand the localised impacts of mine development on nearby communities. These include, for example, direct and flow-on effects on workers and suppliers in the locality, as well as the effect of social and environmental impacts borne by local residents.
Our in-house CGE model can be used to evaluate market-based, economy-wide impacts of proposed resource developments. We apply this model to consider impacts on GDP, employment and wages at a regional, state and national level. Compared to input-output modelling, CGE modelling is regarded as more robust and realistic, particularly for larger projects.
Recent projects have included the Mount Owen Continued Operations Project, the Revised Bulga Optimisation Project, the Rocky Hill Coal Project and the Wilpinjong Extension Project.