The state's ranking as the nation's riskiest territory for mining investment comes as "no surprise", the Chamber of Minerals and Energy said.
In a survey by publication RESOURCESTOCKS, Western Australia was ranked behind other states and territories, with companies increasingly frustrated by issues such as land access, green and red tape, land claims and labour relations.
WA was ranked 12, while South Australia came in second place and the Northern Territory was ranked number 5.
New South Wales came in at sixth, Tasmania ranked seventh, Queensland came in at 10 and Victoria was 11.
The rankings are out of 74 countries and regions.
CME chief executive Reg Howard Smith said while WA's ranking comes as no surprise, it reinforced the need for "deep approvals reform" in the state.
"This is an opportunity for the new State Government to demonstrate strong leadership and prioritise the deep approvals reforms needed to streamline exploration and development approvals."CME chief executive Reg Howard Smith said.
He added that the CME continues to advocate for a risk-based approach, reducing duplication of approvals at state and national level and ensuring state government agencies are well resourced to manage these issues.
"This approvals reform is necessary to underpin future investment in exploration and development that will guarantee the future prosperity of the State," he said.
