A new report shows how critical the UK mineral extraction industry, particularly the non-energy sector, is to the economy, despite the decline of the domestic coal industry. Prepared by Mineral Products Association Ltd (MPA) on behalf of the CBI Minerals Group, The UK Mineral Extraction Industry found 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 this 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. New findings in this report reveal 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
• Minerals extraction directly employs 34,000 people, and supports 4.3 million jobs through its supply chain

The report states: “Whilst this estimate already points to a significant contribution of minerals to the overall economic activity, it also remains significantly underestimated as it only includes the value added created by the production of raw minerals, the manufacture of “enabling” mineral products, and the production of finished goods that use minerals and minerals products as first use. For example, it would include the production of industrial sand, which is then used to manufacture glass, and then inputs to the manufacture of cars and computers. However, our GVA estimate does not include the value added generated by industries that rely entirely on cars and/or computers, such as services.”

The report can be viewed at http://news.cbi.org.uk/news/minerals-critical-to-the-uk-economy/cbi-report-the-uk-mineral-extraction-industry