WA IHI NORTH PROJ ECT ECONOMI C IMPACTS For New Zealand consenting purposes only. Forward looking information must not be relied on for investment purposes. 2 local and national GDP than most industries (labour productivity is around $390,000 per worker, vs economy wide average of around $115,000 and $76,000 in the Hauraki District). It is also a highly export intensive industry. It is a high value industry. o Traditional economic impact analysis also looks at indirect and induced effects – known as multiplier effects. We estimate this using an extraction method from the input-output tables – or how many jobs would be lost if the selected industry shut. We estimate 3.7 jobs rely on each mining job. So, 357 additional jobs in WNP would support 1,321 additional jobs indirectly, mainly through its purchases from suppliers and the spending and investment decisions of its highly paid staff. ▪ Multiplier analysis should be treated with caution – as the effects are indicative of how many jobs the Waihi mine support – but causality is difficult to establish except after full closure of a business. ▪ However, we observe very strong correlation between jobs across the Hauraki District and local mining jobs over the last two decades – supporting our analysis that mining activity supports a wide range of businesses and jobs in the district, far in excess of the direct employment in the mine. • Hauraki District: The economic activity that is generated in the mine, and its multiplier effects, are not all felt equally geographically. We estimate that 30% of the total economic benefits are likely to be in the Hauraki District, around 30% in the wider region of Waikato and Bay of Plenty, around 30% in the rest of the country and around 10% outside the country. Measures such as GDP are less relevant in small geographic areas, where trade across political boundaries is high, and often wages and profits will be spent or accrued outside of the political boundaries. o The data is indicative, as it is based on our analysis of past purchases by OGNZL as they are reported in its Social Impact Monitoring (which may not be the same in the future). However, our analysis of multiple years of purchasing orders suggests the geographic makeup of spending is broadly stable over time. We also observe that increased activity at the mine leads to increased business activity across a range of businesses in the local region, as well as more widely. o Our analysis of company data shows that 50% of staff live in Waihi township, 13% in Waihi Beach, 12% in Katikati, 5% in Tauranga, 2% in Paeroa, 2% in Hamilton, and the rest sprinkled around in various parts of mainly Hauraki and Western Bay of Plenty. This means that the local economic effects of those jobs are felt in a wider catchment than just the Waihi township. o The jobs are well paid for the location. The average annual salary paid was over $100,000, compared to a median personal income of $30,000 in Waihi (which includes income from non-work sources such as welfare and retirement income). Average income from work was around $55,000 in the Hauraki District in 2021, compared with a national average of $67,000. The mine creates high value jobs
RkJQdWJsaXNoZXIy MjE2NDg3