Engineering news
A report published by Mineral Products Association (MPA) has highlighted how critical the UK mineral extraction industry, particularly the non-energy sector, is to the economy.
The report, which was produced on behalf of the CBI Minerals Group and entitled The UK Mineral Extraction Industry, has discovered that mineral extraction contributes to the UK economy by underpinning £235 billion in value added, representing 16% of the total UK economy.
By looking at historical and current production patterns the report illustrates that minerals are essential, providing the foundations for every sector of the economy by supplying vital raw materials at the heart of UK growth.
The report finds that UK Minerals extraction generates a turnover of £15 billion, and £5 billion in Gross Value Added (GVA). Including products manufacture and direct markets, UK minerals generate a GVA of £235 billion, 16% of the total UK economy.
Nigel Jackson, chairman of CBI Minerals Group, said: “The mineral extraction industry is vital to the economy and our way of life. Minerals are essential, representing the largest material flow in the economy and should not be taken for granted. Indeed it is hoped that by developing a national strategy, their role and contribution will finally be recognised and valued by government and all stakeholders, and that the industry can influence a shift to a more positive perception of what it does.”
Excluding oil and gas, mineral extraction employs 34,000 people and is 2.5 times more productive than the UK average. It also contributes directly as a key input to other highly productive sectors further down the supply chain, such as real estate activities via its contribution to construction activities and the manufacturing sector.
The minerals industry as a whole, defined as the extraction of non-energy minerals, coal, and the manufacture of mineral products, emerges as one of the most productive industries in the economy - every worker produced over £62,000 in gross value added in 2013.