The release of the Western Australian Government’s mid-year budget review has demonstrated that the WA resources sector is the primary driver of the State’s economy, accounting for about one-third of general revenue.
Chamber of Minerals and Energy of WA (CME) CEO Rebecca Tomkinson said the WA Government’s $3.7 billion operating surplus is largely attributed to royalties from the WA resources sector, with iron ore generating an additional $3.2 billion. However, Tomkinson warned that the good times may not last if the industry continues to suffer from regulatory inefficiency.
“WA’s economy is the healthiest of any state and territory in Australia and the resources sector is the blood in the veins that keeps the State Budget in such a robust condition,” Tomkinson stated.
According to her, the latest figures surpass May Budget projections, but if the government binds the resources sector in bureaucratic tape, the financial statements will soon be unveiled.
“There are currently $12.6 billion worth of projects in progress in WA, and another $118.4 billion in early stage development looking to advance over the next couple of years. If projects in the pipeline stall for entirely preventable reasons such as regulatory inefficiency, then naturally there’s a knock-on impact,” she noted.
Tomkinson said the WA Government must prioritise an effective regulatory approvals system and policy framework to ensure timely implementation of initiatives in police, health, housing, transport, and renewables, thereby ensuring ongoing investment in these sectors.
“The energy transition is going to require more mining activity to deliver the critical minerals and technology required to achieve the world’s decarbonisation ambitions. This is a generational pivot point in how we approach our energy future,” she stated.
CME has previously welcomed the government’s environmental approval overhauls and funding announcements, including $708 million for transmission upgrades in the South West Interconnected System (SWIS) and $160 million in lease incentives to attract industrial proponents. CME will continue advocating for the recommendations in its WA Pre-Budget Submission.
“The resources sector is a part of WA’s DNA and has long been part of our community as a significant contributor to our local economy and jobs,” Tomkinson added.
