Media Release: social benefit cost analysis research on mining
Published on 07 March 2025
Yarriambiack Shire to invest in social benefit cost analysis research on mining
Yarriambiack Shire Councillors have endorsed the commissioning of a social benefit cost analysis on mining within the Shire, to determine if mining will benefit or harm societal welfare.
The motion was endorsed at a Council Meeting held on 26 February and will see Council make a financial contribution to the University of Melbourne to fund a Scholarship for a Masters research student for the primary purpose of conducting a social benefit cost analysis on mining.
The commitment to this piece of work follows the adoption of a Position Statement on 29 January, outlining Council’s position on mining, renewable energy and transmission lines. A key advocacy piece of the Councillors statement included ensuring the Environmental Effects Statement (EES) process utilised the Social Benefit Cost Analysis (SBCA) model to weigh both tangible and intangible costs against the benefits.
Shire Mayor Cr Kylie Zanker stated “An SBCA is critical in accounting for non-market impacts like environmental degradation and social displacement. The failure to utilise the SBCA model ignores long-term sustainable impacts on regional industries like agriculture.”
Cr Zanker added "When considering Yarriambiack Shire Council and mining, our Shire’s footprint is covered either via an exploration, retention or mining license.”
“This information has become realised across our community in more recent times, with the announcement of the State Government Victoria’s Critical Minerals Road map. The map identifies opportunities for the Mallee and Wimmera Southern Mallee region.”
“This has created apprehension across our communities, as they grapple with what does each of the licenses mean, how does that relate to the road map, and what impact will it have on their farming practices and way of life.”
Council will invest $40,000 per annum, each year, for two years to undertake an SCBA for mining within the Shire, with the aim of making the research and results available to Shire residents once completed. This will assist Councillors in the future, in advocacy and planning, as it will provide the evidence required to assess if mining will improve or diminish the welfare of people in the Shire and region.
SBCA is the economic technique that estimates much more than the changes in economic activity that are estimated using computerized general equilibrium modelling. SBCA estimates the size of all primary and secondary benefits and costs of a private and public nature.
SBCA estimates the change in producer and consumer surplus, which, when summed, gives the net social benefit of an investment, which is the change in people’s well-being with and without the investment. It estimates the change in social welfare after counting all the benefits and costs of whatever nature, whether they have market prices on them or not.
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Cr Kylie Zanker