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WA’s booming resources sector has again emerged as a star performer for the Federal Government, with iron ore the undisputed jewel in the crownNet debt in turn is $92.5 billion lower, forecast to hit $631.5 billion by the middle of the year rather than the $729 billion written into last year’s Budget. If iron ore holds its current price until the end of September, Treasury estimates an additional $15 billion will be generated in tax receipts enough to fund nearly half the cost of the NDIS next year. Iron ore was also singled out as accounting for one-third of the value of all goods and services exported by Australia in 2020-21 and continues to play an outsize role in fiscal repair.

The devastating Russian invasion of Ukraine has captured global ­attention. While the world’s focus is rightly on the human toll and suffering, the crisis has highlighted the need to end reliance on Russian oil and gas. To achieve that ambition, we must be pragmatic and invest in sensible alternatives, not engage in wishful thinking about renewable energy.

Royalty collections were $464 million higher due to elevated iron ore prices and the continued operation of the mining industry throughout the pandemic. “Our strong financial position is assisting us with our transition to living with COVID-19, providing us the financial capacity to provide support where needed. “Since December, more than $350 million has been announced in support to Western Australian businesses, taking the total support provided since the beginning of the pandemic to $1.6 billion.”

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Mining is not just strong in its own right but its strength undermines the development of a more balanced economic profile because it sucks up labour with an ability to pay higher wages that might otherwise be deployed in the development of other industries.And while mining’s share of the economy is 47 per cent; the next highest are construction (5 per cent), healthcare (5 per cent), manufacturing (4 per cent) and professional services (4 per cent). No other state has a single industry with a larger gross value added share than 13 per cent (Tasmania, with healthcare and social assistance) while the other mainland states are all between 9 and 10 per cent. In short, the WA economy for all intents and purposes is the mining industry, and little else is big enough to matter.

Allowing pensioners to work will boost their retirement incomes and meet crippling labour force shortages – help us make it happen.

Unexpectedly resilient iron ore prices have WA on track to double the projected 2021-22 Budget surplus to nearly $5 billion and hand the McGowan Government a second consecutive cash bonanza. That comes after WA banked a record $5.84 billion surplus last financial year – the biggest ever by any State – which also came largely off the back of staggering iron ore prices. Every other State and Territory has pencilled in big deficits for the current financial year, headlined by NSW and Victoria at $19.5 billion each.

3rd February 2022.

If ever there was a game of two halves it was iron ore in 2021. The first half of the year was something we’ve never seen before and may never see againProfits and dividends went through the roof. Australia’s biggest five iron ore miners — BHP (ASX:BHP), Rio Tinto (ASX:RIO), Fortescue Metals Group (ASX:FMG), Roy Hill and Mineral Resources (ASX:MIN) paid out $59.5 billion for the year to June 30. Gina Rinehart, Australia’s richest person, banked $3.92 billion from Roy Hill alone, after the 60Mtpa miner delivered $5.6b to shareholders. Hancock Prospecting’s Atlas Iron business, on death’s door as a listed entity a few years ago, raked in more than $900 million profit as Hancock declared a $7.3 billion profit — a record for a private company and larger than three of the four big banks.

Minister for Resources and Water Keith Pitt said that the resources sector once again has been shown to be the bedrock of the Australian economy and would strongly support the nation’s future growth. “The resources sector has risen above the challenges of the pandemic and will continue to deliver for our nation in the years ahead,” Minister Pitt said. “In 2020–21 our resources and energy earnings passed $300 billion for the first time, reaching $310 billion, and are now forecast to top that by $69 billion in 2021–22. “These are outstanding results that will provide further jobs and opportunities in our regions and benefit all Australians.