Western Australia has more than $8 trillion in known resources – the task is to realise the opportunity, according to the Chamber of Minerals and Energy WA.
The state has enough gold to make 1.3 billion wedding rings, enough iron ore to build 476,000 Sydney Harbour bridges and enough copper for 24.8 billion solar panels, the Unearthing Potential report released this week found.
It would generate $1.1 trillion in total wages, $476 billion in royalties for WA and $855 billion in Commonwealth company tax revenue, under the central scenario that analysed 27 commodities and modelled developing 80% of already identified resources out to 2100.
The report also said WA had enough uranium to power New York City for 70 years, noting future development would depend on technology, market conditions, project viability and policy settings.
The current state government won’t allow new uranium mining proposals but will honour the four projects already granted ministerial approval.
The EY-Parthenon was commissioned by the CME and released as the chamber marked its 125th anniversary, with CEO Aaron Morey saying the mining sector that had long powered the country’s prosperity had generations of life ahead of it.
“The Western Australian story is inseparable from its mining story – and we remain closer to the first chapter of that story than the last,” he said.
“That is exciting for every Australian. With the right policy settings, we can unlock decades of jobs, decades of royalties, decades of taxes and decades of the world knocking on Western Australia’s door for the minerals and energy every modern economy needs.
“For example, $476 billion in royalty payments is enough to fund Westport, pay off WA’s entire debt, build 20 new hospitals and 200 new schools – and still leave more than $380 billion in the bank.”
The report said the scale of development would be shaped by investment conditions, enabling infrastructure, workforce capability, competitiveness, and policy and approvals certainty.
The state government was quick to point out its support for the sector, saying it was working to provide clear and timely regulatory processes, supporting exploration and maintaining WA’s strong jobs market and investment environment.
Recently appointed mines minister Daniel Pastorelli acknowledged resources in the ground only become jobs and economic opportunities when there is confidence to explore, invest and develop them.
“That’s why our government is focused on maintaining Western Australia as a stable and attractive place to invest, while ensuring projects are appropriately assessed and our regulatory system remains clear and efficient,” he said.
Meanwhile the sector will no doubt be keeping a keen eye on Canada’s big push to attract investors. Prime minister Mark Carney this week announced incentives including the “Productivity Mega Deduction” that will cut the effective tax rate on new business investment from about 13% to 6.4% – less than half the rate in the United States.
Canada’s move comes amid a trade war with the US and as Australia’s federal government has been criticised for excluding junior mineral explorers from capital gains tax protections.
