Lessons from the Social and Economic Impacts of the Mining Boom in the Bowen Basin 2004-2006

TLDR

The Bowen Basin coal boom has spurred significant economic and social gains, such as higher employment, income, and spending, driven by a surge in global demand that triggered numerous new mines, expansions, exploration, and supporting infrastructure. However, the benefits have been uneven, with smaller communities constrained by non‑resident labor, Dutch Disease effects, and housing and infrastructure shortages, prompting a call for better housing, labor, information, approval, and planning coordination.

Abstract

The coal industry boom in Central Queensland's Bowen Basin has generated a number of positive economic and social impacts including increased employment, income and expenditure levels. The spike in international demand for coal since 2003 has resulted in an overlapping occurrence of an unprecedented number of new mine developments, expansion of existing mines, exploration activity and the construction of infrastructure to service the mining industry. However, positive economic impacts on smaller communities servicing the region have been limited by the use of non-resident workers, the impacts of 'Dutch Disease' on other industries and resources, and shortages in housing and infrastructure. The concerns are that local communities may be shouldering many of the costs of accommodating new developments while the benefits flow more broadly to regional and state centres. Lessons from the resource boom suggest that greater attention needs to be paid to housing supply, labour supply, information flows, project approvals, and the integration and interdependence of planning issues.