Record $121.6 billion value of resources in 2013-14

Nearly 20 per cent increase on previous year
Date: Friday, 19 September 2014

Figures released today by DMP show the value of the State’s mineral and petroleum industry in 2013-14 set a new record of $121.6 billion, an increase of nearly 20 per cent compared to the previous financial year. 

Figures released today by the Department of Mines and Petroleum (DMP) show the value of Western Australia’s mineral and petroleum industry in 2013-14 set a new record of $121.6 billion, an increase of nearly 20 per cent compared to the previous financial year.

DMP’s latest resources statistics show that iron ore remained the State’s highest value commodity, with a record $73.7 billion in sales.

Project expansions and continuing strong demand led by China resulted in exports of 631 million tonnes, an increase of 23 per cent on 2012–13, along with a 31 per cent increase in value compared to the previous financial year.

Growth in other parts of the State’s mining and petroleum industry also helped support the value of the State’s resource industry.

In 2013 14 there was increased output of gold, copper, lead, salt and diamonds and a significant rise in the value of petroleum sales, with LNG sales alone increasing by more than $1.9 billion to $14.4 billion.

Gold was the second most valuable mineral sector, with total sales of $8.8 billion, followed by alumina at $4.2 billion, then nickel at $3.5 billion.

The new record was primarily the result of a weaker Australian dollar, which was an average 10.5 per cent lower compared to the previous year, aided by an increase in the value of iron ore produced.

Western Australia also remained the nation’s leading mining investment destination, attracting 52 per cent of total national capital spending valued at $90 billion.

Fuelled by strong demand for resource commodities from Asia, new capital expenditure by the State’s mining industry has grown at an annual rate of 15 per cent during the five years to 2013–14.

As at September 2014, Western Australia had an estimated $160 billion worth of resource projects under construction or in the committed stage of development.

A further $108 billion has been identified as being allocated to planned or possible projects in coming years.

The figures also show that the total value of royalties received by the State Government from the resources sector increased by 33 per cent from the 2012–13 financial year to reach a record $6.98 billion.

The petroleum sector, which includes crude oil, condensate, LNG, natural gas and LPG (butane and propane), was valued at $26.5 billion, an increase of nine per cent on the previous year. This increase was largely attributed to LNG and to a lesser extent natural gas.

Mineral and petroleum exports comprised around 90 per cent of the State’s total merchandise exports, representing the major contribution to Western Australia’s 48 per cent share of the nation’s total merchandise exports.

China remains WA’s major trading partner, taking 54 per cent of merchandise exports and is followed by Japan at 18 per cent, then South Korea at eight per cent.

The dominance of the resources sector in the nation’s economy is expected to continue given the number of projects which have been expanded or developed, in particular iron ore and LNG.

Further information on the latest resources statistics for 2013-14 is available from here.