WA Resources Boom Shows No Signs Of Slowing

WA Resources Boom Shows No Signs Of Slowing

Western Australia Minister for Mines and Petroleum Norman Moore

Western Australia’s Resources Industry Earnings Soar Past $90 Billion

Victor P Taffa

The State’s Resources Industry has surged almost 50 % in value since 2009 reaching a record $91.6 Billion in 2010.

Figures recently compiled by the Department of Mines and Petroleum revealed iron ore remained Western Australia’s most valuable resource, accounting for $48.5 Billion or 53 % of all mineral and petroleum sales in 2010.

Mines and Petroleum Minister Norman Moore said strong demand, especially from China, underpinned the sector’s continued record levels of iron ore shipments.

“Recently completed iron ore projects and expansions to existing mines helped boost the State’s iron ore output by 10 % to 391 Million tonnes.” Mr. Moore said.

“The Petroleum sector, which includes crude oil, condensate, LNG, natural gas, LPG butane and propane, also performed strongly throughout last year.”

 

“As WA’s second biggest resource sector, petroleum accounted for 25 % or $22.9 Billion of total sales, representing a 36 % increase in value compared to 2009.”

The Minister said the gold sector had also demonstrated an impressive increase of 35 % over the previous year reaching $7.8 Billion.

This positive result was attributed to the strength of the gold price which averaged US$1,224 per ounce, an increase of 26 % from 2009.

In response to higher prices, the output of gold increased by 25 % to 5.9 Million ounces.

“Iron ore, petroleum, and gold continue to drive strong economic growth in WA and together account for 87 % or $79 Billion of all mineral and petroleum sales in 2010.” Mr. Moore said.

“Continued growth in demand from major trading partners including China, Japan and the Republic of Korea pushed export earnings from the State’s resources sector to record levels despite a strong appreciation in the Australian dollar.”

As a result of increased volumes and higher commodity prices, 2010 mineral and petroleum exports accounted for 91 % of the State’s total merchandise export earnings.

“Due to our State’s rapidly expanding resources sector, export earnings reached an impressive $100 Billion for the first time.”

The Minister said that WA led the nation in mining investment expenditure accounting for $24.5 Billion in 2010.

“WA’s resources industry is expected to grow strongly in 2011 and beyond with more than $250 Billion earmarked for development and expansions in major mining and petroleum projects.”

“Strong economic growth in developing economies, including China and India, will underpin steady demand for the mineral and petroleum products in coming years.” Mr. Moore said.

Mr. Moore said WA was well positioned to build on its strengths as a reliable supplier of quality resources at world cost-competitive prices.