Resources sales up, investment down in WA

The state’s resources industry achieved higher sales in the 2017 financial year at $105 billion, but investment in the sector has fallen to $22 billion according to new data.

The mining and petroleum industry combined reported a 19 per cent increase in sales for the 12 months to June, with iron sales up 31 per cent, liquefied natural gas sales up 18 per cent and gold sales up 7 per cent.

Iron ore sales volumes also increased 6 per cent to a record 790 million tonnes, while gold sales broke the 200 tonne mark for the first time since 2000-01 with 205 tonnes (or 6.6 million ounces) sold.

The volume of LNG produced also reached a record of 28.7 million tonnes, on the back of Chevron’s Gorgon facility coming online coupled with record production out of the neighbouring North West Shelf and Pluto LNG operations.

However, only $22 billion was invested in Western Australia’s mining industry during the period, which, while accounting for about 57 per cent of national expenditure, was down from about $35 billion in FY16.

Mining investment in WA has now fallen by 54 per cent over the past four years.

“Despite the lack of new investment in traditional iron ore and LNG project, interest and investment in new sectors, such as lithium, are rising,” the Department of Mines, Industry Regulation and Safety said in its review of the industry.

“While not mega-investment projects seen during the peak of the commodity cycle, these investments will lead to future production, employment and royalties in Western Australia.”