Latest statistics release

Minerals production was once again the dominant activity in the State's resources sector with $192 billion in sales in 2023.

This was an increase of more than $10 billion from 2022 and the second highest value on record after $192.2 billion in 2021.

Minerals accounted for 77 per cent of all resources sector sales.

Iron ore had sales valued at $139 billion, solidifying its position as the top commodity in WA’s resources sector. This was an increase from 2022, but below the historical high of $158 billion set in 2021.

US dollar iron ore prices were stable year-on-year at around US$120 per tonne, with Australian dollar prices shifting higher to $180 per tonne on a weaker currency. However, this masked considerable volatility in prices, which:

• Continued to rise through the March quarter following an easing of China’s COVID-19 related restrictions, economic stimulus including to support an ailing property sector as well as restocking by Chinese steel mills.
• Eased to the middle of the year on weaker steel demand and Chinese government intervention to scrutinise perceived unreasonable prices.
• Trended higher to the end of the year driven by signs of a turnaround in China's troubled property sector, plus new stimulus measures in China to support steel demand.

More than 860Mt of iron ore were produced during 2023 – up from 855Mt in 2022 and the second highest level for a single calendar or financial year.

During the year:

• Rio Tinto’s performance improved from implementation of the Safe Production System and ramp-up of Gudai-Darri to its nameplate capacity.
• BHP’s sales decreased due to a temporary suspension following the death of a worker in February 2023; unfavourable weather in the middle of the year; tie-in activities for its Rail Technology Programme and Port Debottlenecking project; and the ongoing ramp-up of South Flank.
• Fortescue’s shipments were affected by increased maintenance activity and lower stocks at port in the September quarter 2023 following previous strong shipments.
• Mount Gibson Iron achieved record shipments from its Koolan Island project.

The iron ore industry’s share of sales rebounded to 73 per cent of mineral sales and 56 per cent of total resources sector sales, which are around the levels established over the last decade.

Gold regained its position as the second most valuable mineral from lithium, achieving a record $20 billion in sales in 2023. Gold prices trended higher across 2023 reaching new highs of more than US$2,000 per ounce ($3,0000 per ounce) on geopolitical tensions, including war in Ukraine and the Middle East, as well as a global economic uncertainty.

There was 6.8 million ounces (211 tonnes) of gold produced in WA in 2023. This is down from 2022 but around the same level as recent years. Production was notably lower from Dacian Gold's Mt Morgans project, as it transitioned into care and maintenance, as well as at Newmont’s Boddington mine and at Spartan Resources’ Dalgaranga operations due to its suspension and transition to care and maintenance. They more than offset increased production from the Red 5's expanded King of the Hills project amid its continued ramp-up, as well as the haulage and processing of greater ore tonnes at Ramelius Resources' Penny project.

Lithium sales were down significantly to $16 billion, albeit from recent record levels, to be the State’s third most valuable mineral. The value of the industry remains high in a historical context at almost six times its value in 2021. Prices tumbled throughout 2023 to the lowest levels since late-2021, due to an ongoing supply surplus amid weakened consumer demand weakened for Electric Vehicles (EVs) and in the wake of the removal of EV subsidies and concessions. The quantity of lithium sold in Western Australia was another record of 3.3Mt. This result was supported by the ongoing optimisation and expansion of processing facilities at Pilbara Minerals’ Pilgangoora operations and Talison Lithium’s Greenbushes operation, as well as the ramp-up of expanded production capacity at Mineral Resources’ Wodgina and Mount Marion projects.

The alumina industry had $6.6 billion in sales in 2023. This was broadly the same level as in recent years and remained elevated from its 2020 and 2021 levels. The price of alumina was down slightly to an average of $514 per tonne in 2023 from $523 per tonne in 2022. It ended 2023 roughly where it started it at around $500 per tonne but was volatile across the year on the balance of regional supply concerns and construction demand. The volume of alumina production dropped to 12.8Mt, its lower level since 2011. Alcoa saw reduced shipments due to lower bauxite grades and natural gas supply issues which affected the Kwinana refinery (now scheduled to enter care and maintenance by mid-2024) early in the year, while South32’s Worsley project was affected by planned calciner maintenance and energy supply issues.

The value of nickel sales was $4.7 billion, down almost one-quarter from some of the highest levels in the last 15-years. The price of nickel trended down across 2023 amid low cost and plentiful supply from Indonesia and China, as well as weak Chinese demand, ending the year at around US$16,000 per tonne or 40 per cent lower than it began. Sales volumes were 149 thousand tonnes (kt), a five-year low and among the lowest levels in the last 20 years. Local production decreased for several major operations, including:

• Glencore’s Murrin Murrin operations due to schedule maintenance and phasing of the subsequent ramp-up.
• IGO’s Nova project due to power supply issues associated with the temporary power station installed following a fire in December 2022, as well as various operational issues.
• IGO’s Forrestania project due to seismic issues at the Spotted Quoll mine, as well as the transition to campaign milling as the Flying Fox mine wound-down and eventually reached its end of life.

Copper sales were valued at $1.2 billion in 2023, continuing a downward trend in recent years. Sales volumes fell to 104kt, the lowest level in nearly 20 years as the DeGrussa project wound down and transitioned to care and maintenance. The US dollar price of copper was down though a weaker currency meant Australian dollar prices increased slightly. Prices were overall affected by US interest rate rises and concerns about global economic growth, as well as a weak demand from the construction sector in China. At the end of the year, there were signs of support due to supply concerns.

The remaining significant other mineral sales for 2023 included:

• Mineral sands – $1.3 billion (around the same level as recent years)
• Salt – $790 million (the highest on record)
• Coal – $456 million (the highest on record)
• Manganese – $298 million
• Cobalt – $258 million (around half the level in 2022)
• Construction Materials – $222 million (a decade high)

The petroleum sector, comprising LNG, condensate, crude oil, domestic gas and Liquified Petroleum Gas (LPG), achieved sales of $56 billion.

This is the third highest value since records began, but down considerably from more than $70 billion in sales in 2022-23 and 2022.

The sector’s share of total mineral and petroleum sales was 23 per cent, lower than in 2022 but around the 10-year average.

LNG was the most valuable petroleum product produced in WA at $42 billion (76 per cent of petroleum sales), followed by condensate at $7.8 billion (14 per cent), domestic gas at $2.8 billion (five per cent), crude oil at $2.5 billion (four per cent) and LPG at $591 million (one per cent).

The value of sales was down for all products (apart from domestic gas, which achieved a new record value on higher prices) primarily because of weaker market conditions across 2023 relative to previous highs:

• Oil prices were down on increased supplies from major producers and stifled demand associated with global economic malaise.
• LNG prices fell on muted demand and solid inventories in major importing nations through the first half of the year, though the fall was partially offset by increased demand ahead of the northern winter in the second half.

WA produced 48 million tonnes of LNG in 2023, down from previous highs and bringing its record run to an end. The fall reflected lower output from the North West Shelf due to planned maintenance at the Karratha gas plant and industrial issues in the second half of the year, as well as major maintenance of onshore and offshore facilities for Pluto in the June quarter. Gorgon was also impacted in the June quarter by the tie-in of new wells to maintain supply volumes. Wheatstone continued to outperform, while production from Prelude also increased off the back of a strong first half and despite a protracted maintenance program in the second half of the year.

Condensate production was 11.2 gigalitres (GL), which is around its recent levels. It was supported by record production from the Ichthys floating, production, storage, and offloading (FPSO) facility, as well as an increase in Prelude’s output with the project enjoying some of its highest levels of production since commissioning during the first half of 2023. On the other hand, condensate production from the North West Shelf was down due to maintenance (described above).

Oil production was 3.2GL, which is among its lowest annual levels since the mid-1990s. The result was most impacted by activities related to Woodside Energy’s Enfield/Vincent project with its Ngujima-Yin FPSO departing for Singapore in the March quarter and production only resuming in July. This did, however, drive an increase in the quantity of sales across the remainder of 2023.

Domestic gas sales were at the highest level on record as prices continued to trend higher, reportedly on the impending closure of the State’s coal-fired power plants and increased demand for gas-fired generations, as well as supply issues.

Production was down on account of a significant outage early in the year due to a leak in the export trunkline connecting the John Brookes platform to Varanus Island, as well as reduced output from Santos’ Reindeer/Devil Creek with intermittent operations (to manage water levels at the Devil Creek processing facility) as it approaches the end of its life (expected in the first half of 2024).

However, new supply came online from Walyering while several projects increased production including the North West Shelf, Gorgon, and Wheatstone.

For an overview of the overall performance of the resources sector against key indicators, please see the mineral and petroleum economic indicators 2023.