Article by Adrian Lowe courtesy of the West Australian.
WA’s resources sector has smashed two key records, with the number of people working in the industry and sales hitting an all-time high, new figures show.
Employment hit 157,704 and resource sales reached $231 billion in the 2022 financial year, the latest Department of Mines, Industry Regulation and Safety statistics digest, to be released on Monday, shows.
Royalties paid to the State Government hit a record $12.8b thanks to higher iron ore prices but despite this, the industry’s share of total royalty revenue fell to 85 per cent from 89 per cent thanks to higher royalties from lithium producers and an increase in grants from the North West Shelf.
Iron ore retains its commanding position, employing 50 per cent of the sector, with gold at 22.9 per cent. Alumina, bauxite and exploration rounded out the top five.
Sales of iron ore were again strong, at $137b, the statistics show, while gold sales topped $17b. Lithium the sixth-largest employer by category was third in sales, at a record $6.8b with expectations its dizzying growth pace will continue for the next few years as demand increases.
Spending on mineral exploration also hit a record high of $2.5b, particularly concentrated on gold, nickel, copper, rare earths and lithium.
The department reported more than $24b in investment for the mining and petroleum sectors during the financial year, the highest ever for a single calendar or financial year since 2016 but still only half of that recorded during the investment boom between 2011 and 2015.
“The McGowan Government is committed to growing and diversifying our resources industry to boost our global reputation as one of the world’s most advanced and successful resources sectors,” acting Mines Minister Sue Ellery said.
“With strong investment and multiple projects in the pipeline, I am confident WA’s mining and petroleum industries will continue to support decades of economic growth.” WA was responsible for 34 per cent of the world’s iron ore output, the figures show, and 99 per cent of Australia’s production.
WA’s biggest iron ore customer was again China, at 82 per cent, with Japan, South Korea, Taiwan and Vietnam rounding out the top five.
Petroleum exploration increased slightly from 2020-21 to $567 million, but was still weaker compared to previous years that topped $3 billion.
I am confident WA’s mining and petroleum industries will continue to support decades of economic growth.