Resources

Last Updated on Tuesday, 21 February 2012 12:06

Opportunity

With an abundance of natural minerals and resources, Western Australia has seen the development of huge resource projects and many global companies including Rio Tinto, Chevron, AngloGold Ashanti and BHP Billiton have regional headquarters in the state.

Western Australia is keen to attract exploration, development and value‐add processing in the resources and energy arena, together with the relevant supporting industries and technologies associated with some of these major resource projects.

The multiplicity of projects underway or planned also provides significant business opportunities for infrastructure companies to support the developments taking place, particularly in the areas of engineering construction, transportation and power supply. The value of engineering construction rose 8 per cent (A$2 billion) to A$25 billion in Western Australia in 2010-11, and the State had A$66 billion of engineering construction work in the pipeline at the end of 2010-11, mainly comprising the A$43 billion Gorgon LNG project.

In September 2011 there was A$138 billion of resource projects under construction or committed in WA, and a further A$169 billion under consideration. In October 2011 Western Australia had 64 per cent of Australia’s total value of resource projects under construction or committed (Bureau of Resources and Energy Economics). Figures from the Department for State Development show Western Australia produced $101 billion of minerals and petroleum in 2010-11, 39 per cent more than in 2009-10.

While the mineral and energy resources sector is the predominant focus of activity and attention, the Western Australian economy has increasingly diversified to allow it to cushion itself from fluctuations in the international commodities market.

 

ECONOMY

Western Australia is the powerhouse of the Australian economy. Only 10.4 per cent of the Australian population resides in WA, but the state accounts for 16 per cent of the national economy, and is responsible for 46 per cent  (A$121 billion) of total exports - more than the exports of New South Wales, Victoria and Queensland combined.

In 2010 all of Australia’s nickel, diamonds and garnet were produced in Western Australia, as well as 97 per cent of the nation's iron ore and salt, 87 per cent of Australia's Liquefied Natural Gas (LNG), 70 per cent of its gold, 66 per cent of its ilmenite, and 63 per cent of its alumina. Western Australia also produced 78 per cent of Australia's crude oil and condensate in 2010-11.

Western Australia is a global player in the mineral and energy commodities sectors. The state is a major gateway to Asia and exports to the markets of North Asia, in particular China and Japan. The State welcomes foreign investment and business migration as it looks to build and broaden its economic, industrial and technological base.

Western Australia’s economy was valued at A$217 billion in 2010-11. The 3.5% growth in real terms in 2010-11 was mainly driven by mining activity, business investment and household consumption. In 2010-11, the State had the highest per capita gross state product of A$93,593, which is 50 per cent higher than the national average of A$62,424.

Please visit the Department of State Development website to view the latest WA monthly economic profile, which provides details of the resources sector.

Key Facts

• Value of the mineral and petroleum production in 2010-11 increased by 39 per cent to A$101 billion.
• Value of committed mineral and petroleum projects in September 2011: A$138 billion.
• Value of mineral and petroleum projects under consideration in September 2011: A$169 billion.
• Value of iron ore production rose 62 per cent in 2010-11 to A$57.3 billion.
• Value of crude oil and condensate production rose 25 per cent in 2010-11 to A$12.4 billion.
• Value of LNG production rose 26 per cent in 2010-11 to A$8.7 billion.
• Value of gold production rose 26 per cent in 2010-11 to A$8.2 billion.

*Data courtesy of Department for State Development