Article by Joe Spagnolo, courtesy of The West Australian
25.05.2025
Premier Roger Cook has given Anthony Albanese another not-so-subtle message that WA’s multibillion-dollar mining and resource industry isn’t just good for his State, but driving the nation — just days out from a long-awaited decision on whether the North West Shelf project extension gets Federal approval.
New figures have laid bare the crucial role WA’s mining and resource industry plays for the State and Australia, with mineral and petroleum sales last year alone totalling a staggering $223 billion.
With whingeing States on the east coast continually attacking WA’s new GST deal and turning green with envy over the west’s strong financial position, WA Premier Roger Cook has made it clear to Mr Albanese that without WA’s mineral and petroleum industry Australia would not have the lifestyle it has.
It follows Mr Cook’s letter to Mr Albanese just days after the Federal election, where he listed 10 priorities for the State driving the Australian economy — making sure WA wasn’t dudded out of its fair share of Commonwealth funding.
“Western Australia is the engine room of the national economy, and these figures serve as a reminder to Canberra of the importance of the mining industry in underpinning the quality of life we all enjoy,” Mr Cook said.
And with a decision expected to be announced this week on Woodside’s application for a 45-year extension to its North West Shelf project, Mr Cook used $36 billion in liquified natural gas sales in 2024 to also send this message to new Environment Minister Murray Watt.
“The $36 billion in LNG sales last year alone shows the critical importance of projects like Woodside’s North West Shelf project to our economy,” Mr Cook said.
Mr Watt was in Perth this week to discuss the Woodside extension with Mr Cook, with the Premier asking for a quick decision on the issue.
The path now appears clear for the Federal Environment Minister to announce a decision after the concerns of environment groups were this week rejected.
The environmental approval for Woodside’s gas facility expires in 2030. The company’s request to extend the life of the North West Shelf project out to 2070 has been under assessment since 2018.
Mr Cook has argued that gas from the project was set to play a critical role “in decarbonising WA”, which involves decommissioning coal-fired power stations and transitioning to renewable energy — including rooftop solar and onshore wind.
WA is not just still important, it’s more important than ever given the changes in the economy and the opportunity that is here in WA.
He says thousands will lose their jobs if the North West Shelf project extension is not granted.
“My government firmly believes the extension of the project can be achieved in a way that manages potential risks to the environment, without leaving jobs hanging in the balance,” Mr Cook said.
The 2024 figures, compiled by the Department of Energy, Mines, Industry Regulation and Safety, show iron ore has led the way with $128 billion in sales — the third-highest result on record — driven by strong prices and near-record volumes.
Gold hit a record $24 billion in sales amid global uncertainty, despite a slight dip in production, while alumina recorded $7.4 billion in sales, the highest value since 2018-19.
Lithium sales totalled $5 billion, while nickel sales were just over $3 billion.
More than $32 billion was also invested in WA’s resources sector in 2024.
The DEMIRS figures also reveal the importance of the WA’s mining and resources industry to keeping West Australians in work.
There are now 147,826 onsite full-time positions in WA’s mining and resources industry.
Nearly 136,000 of those positions are on WA mines, marking eight consecutive years of employment growth.
Separately there are 4263 onsite FTE positions in the exploration sector and a further 7870 onsite FTE positions in the State’s petroleum industry.
Iron ore, gold, lithium, nickel and alumina-bauxite remain major contributors to the jobs boom.
“The Cook Government is focused on creating jobs, so it’s pleasing to see continued employment growth in the WA resources sector,” Mr Cook said.
“The record jobs growth in the mining sector show there is no better place in the world to get a quality job, with iron ore, gold, LNG and alumina are all big contributors to the State’s jobs boom.”
Mines and Petroleum Minister David Michael said WA’s resources sector was well placed to “support the energy transition, critical minerals development, and ongoing exploration”.
“More than 135,000 people are now employed in our resources sector — the highest on record — showing the industry’s vital role in creating jobs for Western Australians,” Mr Michael said.
During the Federal election campaign, Mr Albanese lauded WA’s contribution to the national economy. The Prime Minister said an uncertain world made WA even more important to the prosperity of the nation.
“WA is really important,” Mr Albanese said.
“WA is not just still important, it’s more important than ever given the changes in the economy and the opportunity that is here in WA.”
Even so, Mr Cook recently wrote to the Prime Minister with a list of 10 priorities to ensure WA continued to get its fair share of the Commonwealth funding pie for infrastructure and other services.
With the State Government expected to deliver yet another multibillion-dollar surplus for this financial year — and projected surpluses in the out years — the importance of mineral and petroleum royalties to the WA bottom line is also evident in the DEMIRS figures.
Royalty and revenue receipts from the industry since 2020 have totalled $58 billion, including $11.9b in 2024.
The Federal Government also receives billions in company taxes from the WA resources sector.
In 2022-23, the Australian resources sector paid $54.7 billion in company tax to the Federal Government, with WA featuring prominently on the list of Australia’s highest corporate taxpayers.
Mr Cook said while the resources industry was vital to WA’s prosperity, diversifying WA’s economy was a key goal.
There is a firm belief that WA can’t just be an exporter of raw materials — that it has to actually manufacture things here in WA and progress downstream processing.
In recent years, the WA Government has also turned to tourism as another stream of growing income for the State.
Major sporting and entertainment events had been held in WA, attracting thousands of interstate and overseas visitors.
“We will continue to back our resources industry, diversify our economy into the future and make more things here,” Mr Cook said.