Resources sales up despite iron ore drop

Sales from Western Australia’s minerals and petroleum industries totalled $114 billion in 2014, up $200 million from 2013, according to the latest industry snapshot from the Department of Mines and Petroleum.

Sales in iron ore, which has lost more than half of its value in the past 12 months, dropped $3 billion, but still made up 75 per cent of the state’s total sales of resources.

Iron ore production rose from 556 million tonnes in 2013 to 696mt in 2014.

Mines and Petroleum Minister Bill Marmion said although falls in some commodity prices had caused companies to re-evaluate their investment positions, the resources sector continued to play a dominant role in the state’s economy.

He said WA remained the nation’s top mining investment destination, snaring more than half of the country’s resources sector expenditure.

“We’ve removed barriers to investment and prioritised safety, environmental and approvals reforms,” Mr Marmion said in a statement.

The comments come after last week’s announcement the state would not change its royalties scheme, which is designed to capture 10 per cent of the mine-head value of a mineral.

This decision, while welcomed by the mining industry, will have a negative impact on the state’s ailing finances.

The department’s latest figures also revealed the value of WA’s petroleum sector increased by almost 12 per cent in 2014, compared with 2013.

Sales of crude oil, condensate, liquefied natural gas, butane and propane were valued at $27.6 billion in 2014.