STAWELL Gold Mines has estimated the output from its proposed Big Hill Enhanced Development Project will generate $38 million in net benefit, welfare, gain for Stawell's economy.
General manager Troy Cole said preliminary economic findings indicated the Stawell and district community would be $38 million better off during the life of the project based on things such as direct wages, indirect wages and flow-on effects.
He said the economic impact assessment findings had been presented to council and Stawell's business community.
"Stawell's economy will have an estimated 4.9 per cent increase in gross regional product in the investment phase of the project," he said.
The economic impact assessment is required as part of the environmental effects statement process being worked through by the mine.
The assessment determines the potential for significant effects on the economy as well as key industry sectors.
Mr Cole said it measured relevant changes to the economic effects, including gross regional product, income levels, employment, aggregate investment, household consumption and property rental prices.
"These effects are measured relative to a base case scenario whereby the existing gold mine in Stawell closes," he said.
The assessment was by Aither, an independent economic policy advisory firm specialising in water, natural resources, climate change, agriculture and the environment.
The preliminary economic results showed: at its peak, the Big Hill Enhanced Development Project would support 286 jobs, consisting of 181 direct and indirect jobs in the Stawell region, 38 jobs in south-western Victoria and 67 jobs in the rest of Victoria; a net benefit, welfare, gain of $38 million over the life of the project; Stawell's economy would benefit by 4.9 per cent in gross regional product in the investment phase of the project.
Mr Cole said the Big Hill Enhanced Development Project would effectively extend the duration of gold mining in Stawell.
He said without the project, the existing mine would close in 2014 and the region's economies would need to adjust accordingly.
Mr Cole said the project would buy time for those affected including businesses, suppliers and employees to transition accordingly.
He said the impacts were estimates from a computable generalised equilibrium model developed by Monash University, which uses production and expenditure data from the project to calculate net benefits to the economy.
He said the comprehensive model was capable of simulating the dynamic impacts of major infrastructure projects or mining investments at a disaggregated regional level by using economic statistical data collated by Monash University over many years.
He said people could visit www.crocgold.com/bighill, email SGM.firstname.lastname@example.org, visit facebook.com/bighilldevelopment or Twitter via Stawell Gold Mines @bighillproject for more information.