Record iron-ore production in the September quarter was the major highlight in the December 2013 edition of the WA Resources and Economics Report.
Produced by the Chamber of Energy and Minerals of Western Australia (CME) in conjunction with KPMG, the report confirms the significant impact the resources sector plays in the national economy.
“This quarter we observed modest growth nationally, with increases in GDP at 0.6 per cent, with mining production (including oil and gas) increasing 2.7 per cent, while non-mining sectors of the economy grew only 0.2 per cent,” said CME Chief Executive Reg Howard-Smith.
“The report is a timely reminder to all, that the health of the national economy remains reliant on the continued growth of the resources sector,” said Mr Howard-Smith.
Despite this, over the September 2013 quarter, Western Australia saw a 6.2 per cent fall in total resources (mineral and petroleum) exploration spending.
“Unlike previous quarters the decline in expenditure was driven by a decrease in petroleum exploration, which fell by 10.6 per cent,” said Mr Howard-Smith.
Other key highlights from this quarter:
- The State accounts showed that Western Australia’s output growth moderated to 5.1 per cent from the previous quarter and were 7.3 per cent higher than this time last year.
- Total iron ore production again surpassed the highest quarterly production level on record, rising by 3.8 per cent to 152 million tonnes.
- The Bureau of Resources and Energy Economics (BREE) have projected that Australian export revenues will grow at an annual average rate of 11 per cent to $294 billion in 2017-18.
The report takes a spotlight look at regulatory reform in the Western Australian resources sector and the importance of ensuring that our approvals system is effective and efficient to maintain our international competitiveness.
The commodity analysis for this edition focuses on nickel and the challenges facing producers.
“Given the Indonesian Government’s recent announcement of a ban on the export of all unprocessed minerals, an examination of the nickel market will be of interest to readers,” said Mr Howard-Smith.
The report also features an interview with Paul Harvey, the Asset President at BHP Billiton Nickel West. Paul discusses the outlook for the Western Australian resources sector, the prospects for the global nickel industry and BHP Billiton’s community engagement.
The December 2013 WA Resources and Economics Report is available here or by visiting www.cmewa.com
