1. A statistical overview of
The Minerals and Energy Industry in Western Australia
Photo courtesy of BHP Billiton Iron Ore

2. Map of Mineral Mines and Petroleum Fields
Browse
Basin
Carnarvon
Basin
Teacher Notes:
There are 5 main mining regions in WA and an array of over 40 commodities that are mined in those regions
The main mineral and petroleum regions in WA are; - The Pilbara, which is principally iron ore,
- The Mid-west, mining iron ore, domestic gas, mineral sands,
- The South-west, principally bauxite, mineral sands and coal for domestic use,
- The Goldfields, principally gold, nickel and with uranium exploration; and
- The Kimberley, principally diamonds.
In addition to these regions are the offshore oil and gas provinces – these are mostly in Commonwealth waters and therefore subject to Commonwealth taxes but administered by WA. They are;
- The Offshore Carnarvon Basin, containing domestic gas, LNG and oil – home to the North West Shelf project and shortly, Gorgon and Pluto LNG projects; and
- The Offshore Browse Basin, containing LNG (under development with Inpex’s offshore gas fields delivering gas to a Darwin LNG plant and Woodside – operated Browse gas fields bringing gas ashore to a planned LNG plant north of Broome)
32% of all mineral and petroleum employment is in the iron ore sector (in the Pilbara region) and a further 19% in the gold sector (in the goldfields region).

3. Key Statistics $70.9 billion in production value
89% of the State’s merchandise export income
$2.8 billion in State royalties
85,000 people directly employed in mining + petroleum
Mining component of WA GSP: 27% ( )
Teacher Background Notes:
Department Minerals and Petroleum data indicates
In 2010, WA’s sector achieved $70.9 billion in production value. The industry has recorded growth of 14 per cent per annum over the last decade.
State royalties $2.8 billion in 2009/10. DTF forecast over $4 billion in 2010/11
Almost 1 in 4 jobs in the WA economy are either directly or indirectly attributable to resources.
Pie graph -
Iron ore is the State’s largest sector in terms of value accounting for $33.7 billion or 48% of total sales.
Petroleum (includes crude oil, condensate, LNG, natural gas, LPG, is WA’s second biggest sector accounting for $19 billion or 27% of total sales for 2009/10.
Gold accounts for 9% of overall minerals and petroleum industry sales, generating a record $6.6 billion – up by 26%. This result was driven by a strong gold price which averaged above US$1091 per ounce – an increase of 25% from
Nickel contributed $4.1 billion to the total value of the State’s resources production. Although nickel production remained almost static from the previous financial year, a 45% increase in the $US nickel price meant the value of nickel sales increased by 36%.
Copper recorded a 17% increase in output which totalled 149,000 tonnes in Copper prices increased by 36% in US dollar terms from the previous financial year, meaning sales increased by 74% to $1.1 billion.
Source: Department of Mines and Petroleum Value of WA’s Minerals and Petroleum Industry , WA Department of Treasury and Finance, State
Budget 2009/10, ABS Labour Force September 2010

4. WA Projects Cossack/Wanaea Oil&Gas - $1.8b Browse LNG Precinct - $30b
North Rankin LNG - $5b
Pluto LNG - $12b
Brockman Syncline 4 Iron Ore - $2b
Gorgon LNG - $43b
Rapid Growth 5 Iron Ore - $5.3b
Various Pilbara Iron Ore Projects - $14.5b
Wheatstone LNG - $3b
Sino/Citic Iron Ore - $5.2b
Spinifex Ridge Molybolenum/Copper - $1b
Macedon Oil & Gas - $1b
Mesa A/Warramboo Iron Ore - $1.2b
Mid-West Iron Ore Projects - $2.26b
Karara Iron Ore - $1.8b
Yeelirrie Uranium $TBA
Teacher Background Notes:
This map indicates areas of resource extraction where approvals have been attained. (Green).
There is considerable activity in the LNG sector, in the north of Western Australia –the largest being the Gorgon project on Barrow Island. An iron ore province in the Mid-West is also emerging e.g. the Karara Iron Ore Project.
Other projects are under consideration (Blue)
The most significant in value terms is the proposed $30b Browse LNG precinct, at James Price Point, near Broome.
The precinct, identified by the WA government, will be capable of accommodating LNG processing and shipping facilities for multiple users. The approach is designed to minimise the environmental footprint of gas processing in the region, while maximising benefits for local businesses and people, with relative proximity to population centres.
The total value of Pilbara iron ore projects under consideration - $14.5b.
The total value of Mid-West Iron Ore Projects under consideration - $2.26b
BHP is looking at the potential of the State’s first uranium mine at Yeelirrie in the north-eastern Goldfields. If approved, mining could start as early as It would create 700 construction jobs, and 300 ongoing positions.
Nearby is Anglogold Ashanti and Independence Group’s $700 million Tropicana Project which secured approval in November Expected to produce 3.4 million ounces of gold over 10 years. It is estimated production will begin by Construction jobs – 700; operational jobs – 400.
Oakajee Port and Rail - $4b
Key:
Tropicana Gold - $700m
Under Consideration
Committed
Worsley Alumina - $2.5b
Coal to Urea Fertiliser Plant - $3.5b
Southdown Magnetite - $1.6b
29/12/2018 4

5. Exploration Expenditure
Teacher Notes
The graphs indicate nationally, minerals exploration expenditure rose to $2.2 billion - 57% of which was spent in WA (& 20% in Qld).
National exploration expenditure in petroleum rose to $3.5 billion – 71% of which was in WA (& 14% in Qld).
Iron ore dominated the State’s exploration expenditure (accounting for 40% or $497m), gold next (28% and $348m) then nickel (16% and $195m).
Source: Department of Mines and Petroleum Statistics Digest

6. Source: Department of Mines and Petroleum – Statistic Digest 2009/10
Royalties Paid by WA Resource Projects
Teacher Notes:
Royalties are a very important source of revenue for the Western Australian state government, representing approximately $2.8 billion in
In addition to royalties, income tax, payroll tax and a range of other fees and charges are paid by the industry to government.
Iron ore and petroleum are the major royalty payers in WA.
2009/2010 Royalties = $2.8B Royalties for Regions = $357m
Projections for 2010/2011 Royalties = $4.0B Royalties for Regions = $993m
Projections for 2011/2012 Royalties = $4.4B Royalties for Regions = $1.1B
Projections for 2012/2013 Royalties = $4.5B Royalties for Regions = $1.2B
Source: Department of Mines and Petroleum – Statistic Digest 2009/10

7. Western Australian Resources - National Context
In 2008/09 the WA resources sector accounted for:
46% of Australia’s total value of mineral and petroleum sales
66% of Australia’s oil and condensate production
71% of Australia’s gas production
38% of Australia’s total merchandise exports
54% of Australia’s mineral exploration expenditure
73% of Australia’s petroleum exploration expenditure
64% of total national mining investment
Source: Department of Minerals and Petroleum website; October 2009
Teacher Notes:
Western Australia represents 10% of the Australian population, the contribution therefore that the WA resources sector makes to the national accounts is considerable.
The Western Australian economy has expanded at a considerably faster pace than that of the nation.
The statistics on this slide demonstrate that Western Australia is a leading contributor to the national economy, with 38% of Australian merchandise exports originating in Western Australia and 64% of all mining industry investment, spent in Western Australia in 2009.

8. Labour Demand www.cmewa.com Teacher Background Notes:
Survey results included in this Growth Outlook suggest that State-wide demand for labour from the minerals and energy sector would grow significantly between and projected to grow by an annual average of 7 per cent to 27,000 by 2014.
In addition, minerals and energy sector activity was forecast to stimulate an additional 50,000 indirect jobs by 2012.

9. Occupations in Demand Engineers (all disciplines) Geologists
Drillers and drillers assistants
Metal Trades
Electricians
Electrical and Instrumentation Trades and Technicians
Plant Mechanics
Process Plant Operators
Background Teacher Notes:
The many major projects underway or under consideration in WA will require different skill sets, pending on the stage of development – hence the diversity of skills required.
A project workforce will peak during construction, and drop substantially when in production phase – particularly in oil & gas projects.
The sector has the challenge of a skill shortage, not a labour shortage. People are needed with the right skills at the right time and in the right location.

10. www.cmewa.com Background Teacher Notes:
Neither WA nor Australia has a stranglehold on any commodity in terms of world trade: not iron ore, alumina, nickel, LNG or mineral sands. These commodities are available elsewhere.