Western Australia: A place to invest
Western Australia takes up about one third of Australia, covering 1 million square miles, (2.5 million square kilometres). It has around 10 per cent of Australia’s population is and responsible for more than 44 per cent of the value of Australia’s total exports.
The State is one of the world’s most resource-rich jurisdictions and continues to experience substantial growth in mining and energy investment. It accounts for about 22 per cent of the world’s iron ore production, 23 per cent of alumina, 13 per cent of nickel and nine per cent of Liquefied Natural Gas (LNG). With the figure for LGN predicted to increase dramatically in the near future. It also has significant global market shares in gold, mineral sands, lithium and tantalum and amongst the world’s largest uranium reserves.
Shifts in corporate influence towards Western Australia, as evidenced by the number of companies making Western Australia their base, have been driven by Perth’s strategic location and access to natural resources.
Western Australia is currently powering the growth of the Australian economy and remains buoyant due to its coupling to Asia’s massive industrialisation processes.
Business investment in Western Australia grew at an annual average of over 16.7 per cent in the five years to December 2010.
While this slowed to 2.8 per cent growth in the year to June 2009 when the world was in recession, and further dampened in the September quarter 2009. Further rapid escalation is anticipated with the recent decision by the joint venture partners to progress the Gorgon LNG project. This project, at a cost of A$43 billion (£25 billion), is Australia’s largest ever natural resource project investment. Resources Minister, The Hon Martin Ferguson AM MP, described the north-west shelf of Western Australia as ‘one of the nation’s most prized assets’ which ‘can secure Australia as a global energy superpower’, with Australia’s proportion of the world’s LNG production being set to more than double in coming years. In terms of world export rankings for LNG, Australia is forecast to move from sixth to second after Qatar.
Opportunities
Specific investment and business development potential exists in the oil, gas and mining service support sector, fabrication, repair and maintenance of oil, gas and mining plant and equipment.
The State also offers significant opportunities for companies seeking to undertake exploration, both onshore and offshore, in minerals, oil and gas including tight gas as well as geothermal.
As is the case with minerals and energy, Western Australia has a thriving agricultural sector, with significant commodity exports to Asia. New initiatives, such as the proposed doubling of the Ord River irrigation project in the State’s north, will expand the State’s role as a food supplier. Exports from the State include cereals, pulses, meat and livestock, wool, dairy and horticulture. Quality is well represented by premium wine (4 per cent of the nation’s wine but more than 20 per cent of its premium wines), rock lobsters and even black truffles.
Western Australia is expanding its infrastructure with record investments in the State. Various project developments under consideration, from hospitals, port terminals, railways, through to water and energy supply projects, offer potential for investment and innovation.
In emerging technologies there are many areas of close collaboration with the UK and Europe as well as excellent and innovative research. This includes the fields of medical and genetic research, including the work of Western Australian Nobel Prize winner Clinical Professor Barry Marshall AC on helicobacter pylori. In renewable energy, Western Australia is at the forefront of research in solar, micro-algal, geothermal and wave energies. In radio astronomy Western Australia (and extending across Australia to New Zealand) is one of two sites short-listed for the proposed Square Kilometre Array Radio Telescope, potentially the most significant international science project for the next 20 years. To assist this project and others, researchers in the State will get a data-crunching boost in the form of an A$80 million (£44 million) high-performance computing facility to be built in Perth.
Perth as a base to service the Asian and Indian Ocean markets
Western Australia shares time zone parity with 60 per cent of the world’s population, including China, Singapore and Hong Kong. In addition to its own strong growth, the State is both a springboard and conduit to the dynamic markets of Asia. A number of UK and European companies have chosen Western Australia’s capital city, Perth (ranked the fifth most liveable city in the world), as a hub from which to enter the Asian market. This is because of the ease of doing business and the safety and security of investment.
Fact sheets
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| Western Australia: Background | Western Australia: A place to invest |
