WA still the place for resources investment

Continuing investment in major resources projects nearing completion contributed $35 billion to the Western Australian economy in 2015-16, around two thirds of Australia’s resources investment spend in the year, according to the Department of Mines and Petroleum.

About $100 billion of resources projects are in the construction phase across the state, although the majority of that figure is already spent and many are winding down.

An additional $46 billion of projects are still possible, according to the department.

A large share of the assets under construction would be LNG-related megaprojects, such as Chevron-led Wheatstone, which is expected to produce first gas next year.

The value of the resources sector was $87.9 billion in the 2015-16 financial year, according to Mines and Petroleum Minister Sean L'Estrange, a fall of about 12 per cent on the previous corresponding period.

That included an increase in the value of gold produced to $10 billion on the back of a higher gold price.

But iron ore was the biggest contributor, with sales of $48.4 billion, followed by LNG at $10.8 billion.

Alumina production was $4.9 billion.

“The resources industry’s current value is more than twice what it was 10 years ago,” Mr L’Estrange said.

“The Liberal-National government remains committed to fostering a strong and sustainable resources industry through policies which support mining exploration and development.

“We are the world’s largest exporter of iron ore and currently produce 757 million tonnes per annum.”

WA was also well represented in mineral exploration spending.

Out of $1.4 billion of expenditure on exploration in 2015-16 nationwide, more than 62 per cent was destined for WA.