Resources future beyond the boom

With up to $17 trillion of resources investment likely to be needed globally by 2030, Western Australia has an opportunity to capitalise on its strengths as a resources sector hub, according to a report from the International Mining for Development Centre.

The centre says that half of global known resources reserves are in emerging economies that need skills, services and capital to develop projects.

Director of the University of Western Australia’s Energy and Minerals Institute, Tim Shanahan, said there was a need to recalibrate awareness around WA’s position as a global hotspot.

“Perth is the jumping off point of capital … but it’s not just about capital, it’s about skill,” Mr Shanahan said.

Education is Australia’s third largest export, he said, which gave WA a comparative advantage in mining education.

Mr Shanahan said UWA had focused on delivering a strong resources theme across many disciplines, including biodiversity, social impact, law and commerce.

In conjunction with the University of Queensland and with federal government funding, UWA has established the International Mining for Development Centre to provide training to representatives from developing nations on how to best use their mineral resources.

The report highlights Africa, where 220 ASX-listed companies are involved in 1,101 projects, making the ASX the most popular place for listing of Africa-focused miners.

Nearly 170 of these companies are based in WA.

Those 220 companies produced almost a quarter of Australia’s resources discovery and definition globally from 2008 to 2013, valued at $687 billion out of nearly $2.6 trillion.

More than 30 of the 95 Australian projects producing in Africa were gold mining operations, with coal, copper and aluminium also popular – a statistic that is mirrored by companies in the exploration stage.

Similarly, mining equipment, technology and services exports were worth more than $27 billion in 2013, with 27 per cent of METS companies picking Africa as their top export destination, according to an Austmine survey.

WA again has a strong connection to Africa, with 44 per cent of WA METS companies identifying the continent as their top export destination.

Potential growth in Africa and other developing nations gives an opportunity to think about the future of the resources industry beyond just digging up and shipping out our own endowment, according to Mr Shanahan.

“We need to highlight that there is an opportunity there,” he said.