Special Report: Major projects

The boom in resources and infrastructure projects in WA has hit a new record despite severe cost pressures and skilled labour shortages.

The iron ore sector has been at the forefront of Western Australia’s resources boom and, while industry heavyweights Rio Tinto and BHP Billiton still dominate, new producers are gradually emerging.

The petroleum and iron ore sectors have grown to dominate Western Australia’s resources industry but there is still plenty of growth happening in other sectors as diverse as molybdenum, vanadium, nickel, gold, copper and zircon.

More than 850 megawatts of additional generation capacity for the South West Interconnected System is expected to come online by October 2008, with 3 major private energy projects currently under construction scheduled for completion within the next year.

The state government has copped a lot of flak over cost increases and construction delays on its metropolitan railway expansion project, but its problems are modest compared with some of the largest resource projects being built in Western Australia.

The state’s two proposed biofuels projects, both slated for the Kwinana-Rockingham industrial area, are well into their advanced stages, with one due to commence construction later this year.

The oil and gas sector is set to make an increased contribution to WA's strong economy with eight major expansion projects under way, including the state’s single most expensive development, Woodside Petroleum’s $12 billion Pluto gas project.

The state government and iron ore miners in the Mid-West are facing crunch time over the development of new railway and port infrastructure, which is needed if planned mines are to proceed.

While Western Australia is witnessing a boom in mining and resources projects, several major non-mining projects, with a combined value of almost $2 billion, are also in the pipeline.