Western Australia’s resource sector was valued at a record $28.4 billion in 2004, according to a recent report from the Chamber of Minerals and Energy of Western Australia.
Western Australia’s resource sector was valued at a record $28.4 billion in 2004, according to a recent report from the Chamber of Minerals and Energy of Western Australia.
Our Resource Regions 2005-06 highlights the North West, the Mid-West, the Gold-fields-Esperance and the South West regions and their ability to produce wealth and employment through the resources sector.
CME chief executive Tim Shanahan said the resources sector was worth more than $28.4 billion in 2004, generating more than $1.14 billion in royalties.
“This unprecedented level of activity is providing tremendous benefits for the regions of Western Australia,” he said.
According to the report, the North West received more than $17 billion in commodity sales in 2004 (60 per cent of the WA total) with petroleum and iron ore posting a sales value of close to $10 billion and $6 billion respectively in 2004.
The proposed $11 billion Gorgon gas project made up close to 50 per cent of the $22.3 billion in gas projects in the region, while expansions by BHP Billiton and Pilbara Iron made up a considerable part of the $9 billion in iron ore projects.
The $3.5 billion in petrochemical projects included Burrup Fertilisers’ ammonia plant.
A key fact outlined by the report was that one in two jobs in the Pilbara and one in 10 jobs in the Kimberley depended on the resources sector.
Nickel is the key commodity in the Goldfield-Esperance region, worth a record $2.9 billion in 2004.
Gold ranked second with a value of more $2.2 billion, with six of the state’s seven largest gold mines located in this region, the Super Pit on its own producing 28 tonnes of gold.
One in three jobs depend on the resources sector in this region.
The report said alumina was valued at close to $3.2 billion and made up 82 per cent of commodity sales in the South West in 2004.
Key prospects in the South West included the $2.8 billion expansion of the alumina refinery capacity by Alcoa and Worsley, and the $750 million Boddington gold project development.
The Mid-West’s resource production value was $1.9 million in 2004, with the report suggesting the region remained highly prospective. Gold and nickel made up a considerable chunk of the total sales, with $607 million and $500 million respectively.
Gold resources of more than $100 million were contained within 22 gold projects in the region, with heavy mineral sands making $318 million in sales in 2004.
Improved export opportunities were identified in the Mid-West region with the $100 million enhancement of the Geraldton Port and an $88 million southern transport corridor.
The regional spread of resources projects may well be marked, but from a national perspective, WA is definitely taking the lion’s share of the action.
According to the December quarterly commodities update by the Australian Bureau of Agriculture and Resource Economics, at October WA had $13 billion worth of committed projects, 44 per cent of the nation’s total. This included 19 mining projects worth $8.51 billion, two minerals processing projects worth $750 million and six energy projects worth $3.86 billion.
Only Queensland competed in this area, pipping WA in energy with 17 projects worth $4.85 billion, mainly in coal.
In the less-advanced project list, WA has 68 lined up as a possibility, including 15 iron ore projects worth a combined $11.92 billion.
