Minerals, petroleum growth to $58.6bn

THE value of the state's mineral and petroleum industry increased by 9 per cent on last year, with the industry generating $58.6 billion in revenue for 2007-08.

While most commodities experienced a drop in production volumes, the increase in value was fuelled by strong overseas demand and high commodity prices.

However, rising commodity prices were to a large extent offset by the appreciation of the Australian dollar.

According to the Department of Industry and Resources, iron ore output increased by 13 per cent, with 291 million tonnes sold for a record value of $20.5 billion.

Crude oil, the state's second largest resources industry, experienced a 9 per cent drop in output for the year to 80.3 million barrels, while condensate output increased by 6 per cent to reach 37.6 million barrels.

Third placed nickel experienced a 2 per cent drop in sales volumes, and affected by a strong Australian dollar and 24 per cent drop in US dollar nickel price, generated $5.3 billion in sales revenue.

Output of the state's fourth most valuable commodity, LNG, was also slightly down, by 0.5 per cent, but the high oil price drove the value of sales up 13 per cent to $5.1 billion.

Alumina had a 3 per cent output increase for the year, with a record 12.3mt shipped, with the strengthening Australian dollar reducing sales revenue by 7 per cent to $4.5 billion.

Gold output also fell, by 14 per cent, to 4.5 million ounces due in part to producers processing lower grades, generating sales of $4.1 billion.

The average price for gold for the year was $US817 per ounce, reaching a new high of $US1,033 per ounce in March 2008.