Aluminium has been made in Australia for 70 years. The industry generated $18 billion in 2024 and employs thousands of Australians in regional communities, including in WA through bauxite mining and alumina refining. 

CME Acting Chief Executive Officer Adrienne LaBombard said the credit was a positive step towards safeguarding Australia’s aluminium industry but additional measures targeting other commodities were also required.   

“We hope this announcement is the first of more to come, specifically supporting the development of other green materials in WA, such as green iron and green alumina,” Ms LaBombard said. 

“Maintaining Australia’s existing upstream and downstream industry while seizing the new opportunities on offer through the energy transition will require ongoing and holistic policy support. 

“CME is continuing discussions with the Federal Government for a green iron production credit that is also stackable with other proposed incentives under the Future Made in Australia Plan, such as the $2 per kilogram hydrogen PTI.”  

A CME report released in December found large-scale production of green iron in WA had the potential to slash global CO2 emissions by 1.2 per cent, create nearly 20,000 jobs and generate $74 billion in economic value.  

However, establishing a green iron industry of that scale requires the commercialisation of new technologies and processes as well as significant public and private investment in low-emission energy and supporting infrastructure such as ports, roads and desalination plants.  

 “Our report found WA-made green iron, produced with hydrogen instead of coal, has the potential to offset nearly all of Australia’s 465Mt of domestic CO2 emissions by 2050,” Ms LaBombard said. 

“Industry is already investing to unlock the immense potential on offer but will require government support.  

“That must include an expansion of R&D funding, further tax incentives and substantial additional investment in lowering the cost of low-emissions energy and the rollout of common-user infrastructure.” 

Media contacts: 

Josh Zimmerman j.zimmerman@cmewa.com / 0404 947 719   

Natasha Mutch n.mutch@cmewa.com / 0435 383 382 

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The Kwinana Industrial Area, Rockingham Industry Zone, Latitude 32 General Industrial Area and Australian Marine Complex – collectively known as the Western Trade Coast – contribute $14.8 billion to the WA economy each year and support around 42,900 direct and indirect jobs. 

However, these important industrial areas are now heavily constrained and significant investment is required to unlock additional land, upgrade road, rail and port capacity and improve energy and water connections.  

In August last year the State Government released its own Western Trade Coast Infrastructure Strategy, which identified the priority upgrades needed to futureproof the area and set up the WA economy for the future. 

CME Acting Chief Executive Officer Adrienne LaBombard said well-located, project ready land was vital to attract investment in the value-adding industries poised for substantial growth through the net zero energy transition.  

“Access to turnkey industrial land is no longer a nice-to-have – it has become a prerequisite for major projects that have motivated suitors in countries across the globe,” Ms LaBombard said. 

“The Western Trade Coast is the heart of heavy industry in Perth but it is already full to bursting and that is without accounting for the projects in the pipeline.  

“Added to this, the State’s other identified industrial estates, from Kemerton right up to the Pilbara, are well short of project ready with limited transport infrastructure, port and rail capacity, utility connections as well as uncertainty over access to low-emission, reliable and affordable energy.” 

Five months after the release of the Western Trade Coast Infrastructure Strategy, KIC Chief Executive Officer David Harrison said none of the priority projects it identified had been funded. 

He said industry was increasingly concerned inadequate infrastructure would impact the delivery of projects of State and national significant, including AUKUS and Westport.  

“With more than $40 billion of new projects planned for the area over the coming decades, now is the time for the State Government to deliver its own infrastructure strategy for the area and support economic growth and diversification by ensuring local infrastructure, such as roads, railways and ports, are up to the task,” Mr Harrison said. 

“We have the plan, we know what is needed – now we need government to act.” 

Media contacts: 

Josh Zimmerman j.zimmerman@cmewa.com / 0404 947 719   

Natasha Mutch n.mutch@cmewa.com / 0435 383 382 

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Chamber of Minerals and Energy WA (CME) Chief Executive Officer Rebecca Tomkinson said the $9.4 billion in royalties forecast for collection in 2024-25 was enough to more than cover the salaries of every public health worker and police officer in the State.

The resources sector is also the biggest source of payroll tax, which is now expected to total $5.8 billion in 2024-25.

“Despite a challenging year for global commodity markets, the resources sector remains the driving force behind WA’s economy and our world-leading living standards,” Ms Tomkinson said.

“Mining and energy extraction supports three in 10 jobs in WA and provides an incredible 19.2 per cent of government revenue through royalties alone.

“That money helps pay for everything from nurses and police officers to train lines and desalination plants.”

The WA Government’s revised $3.1 billion surplus for 2024-25 is largely driven by royalties, which are now predicted to total $9.4 billion. That compares to a forecast of $7.8 billion in the Budget delivered in May.

Despite the upgrade, iron ore royalties, which are the biggest contributor to WA’s budget bottom line, are at their lowest in nearly two years as a result of weaker global demand and softer prices.

Other commodities such as lithium and nickel have also faced challenging market conditions that have had an impact on royalty revenue.

Lithium royalties have fallen to $216 million in the 2024-25 Mid Year Review compared with 2022-23, when they reached nearly $1 billion.

Ms Tomkinson said dramatic falls in nickel and lithium prices were a stark reminder of the cyclical nature of the resources industry.

“It’s important for governments to act when necessary to support the sector through periods of temporary market weakness, like we saw through the lithium relief package announced last month,” Ms Tomkinson said.

“Just as important is a laser-like focus on getting the basics right. That means speeding up project assessments and investing to maintain WA’s standing as a premier mining province.

“Accelerating the decarbonisation of WA’s power grids and further funding for well-located, turnkey industrial land are two of the best ways that can be achieved.”

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Media contact:

Josh Zimmerman j.zimmerman@cmewa.com / 0404 947 719

Natasha Mutch n.mutch@cmewa.com / 0435 383 382

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The approval comes after Environment Minister Reece Whitby supported amendments to a range of conditions, enabling Worsley to continue to deliver its significant economic benefits while meeting the State’s strict environmental standards. 

CME Chief Executive Officer Rebecca Tomkinson said Mr Whitby’s decision reflected the WA Government’s recently updated emissions policy for major projects. 

“The WA resources sector supports strong environmental protections but unnecessary duplication introduces delays and harms investment confidence without providing any additional benefit to the environment,” Ms Tomkinson said. 

“For projects already regulated under the Commonwealth’s Safeguard Mechanism, there is simply no need for additional State-based conditions related to emissions reduction.” 

Ms Tomkinson said alumina refining was a key step in the production of aluminium, one of the world’s most important and versatile metals. 

“The global energy transition would not be possible without the aluminium used in solar panels, wind turbines and transmission lines,” Ms Tomkinson said. 

“Aluminium is also found in everything from cars to electronics and fully recyclable cans.” 

South32’s Worsley Alumina began operations 40 years ago and is one of the world’s biggest alumina refineries, fed by bauxite mined near the town of Boddington and employing 2000 employees and contractors.    

“Worsley has a long history in the South West and has supported multiple generations of well-paid workers producing a product that the world cannot go without,” Ms Tomkinson said.  

Ms Tomkinson said efficient completion of the Commonwealth environmental assessment process was now vital. 

“Drawn out approval processes do nothing to improve environmental outcomes but act as a handbrake on development and harm investor sentiment,” Ms Tomkinson said.  

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Mining export earnings have been downgraded by $100 billion over the next four years, reflecting softening demand for Australian resources as competing jurisdictions ramp up production.  

Chamber of Minerals and Energy WA Chief Executive Officer Rebecca Tomkinson said the forecast hit to exports was expected to result in the Commonwealth receiving $8.5 billion less in corporate tax over the forward estimates.  

“When the resources sector struggles, Australia struggles,” Ms Tomkinson said. 

“The strong headwinds buffeting industry are reflected in the nation’s fiscal position. 

“These downgrades must act as a wake-up call for the Commonwealth Government to the substantial challenges confronting WA’s resources sector. 

“Harmful policy is no longer just a handbrake on the growth of industry – for some commodities it is now an existential threat.” 

CME continues to advocate for the repeal of several key aspects of recent Federal industrial relations reforms, including involuntary multi-employer bargaining, the ‘intractable bargaining regime’ and allowing unions to force bargaining without employee support.  

“Disconnecting wage rises from productivity gains and opening the door to widespread industrial action has substantially increased investment risk,” Ms Tomkinson said. 

“Uncertainty over the future of Nature Positive legislation is also hurting business confidence. 

“CME continues to support reforms that are better for the environment and better for business but the proposed Nature Positive laws as currently drafted achieve neither objective.” 

Ms Tomkinson said legislating production tax incentives for renewable hydrogen production and critical minerals processing, the key plank in the Commonwealth Government’s Future Made in Australia plan, must be prioritised if Parliament returns ahead of next year’s election. 

“The road to net zero should run through Western Australia – but it won’t without recognition that we are competing against jurisdictions that are rolling out the red carpet for downstream processing,” Ms Tomkinson said. 

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Media contacts: 

Josh Zimmerman j.zimmerman@cmewa.com / 0404 947 719   

Natasha Mutch n.mutch@cmewa.com / 0435 383 382 

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It took six years for the WA Government to complete its robust consideration of the North West Shelf Extension. The Commonwealth Government now has 30 business days to finalise its own environmental assessment. 

CME Chief Executive Officer Rebecca Tomkinson said protracted approvals processes were costly and delays could significantly impact investment confidence and urged the Commonwealth to now conduct its own review as efficiently as possible. 

“This a vital project for WA’s ongoing prosperity, as well as energy security both here at home and abroad,” Ms Tomkinson said.  

“CME calls on the Commonwealth to swiftly complete its own assessment and provide some much-needed certainty for the future of the North West Shelf.  

“The North West Shelf Project has generated over $40 billion in taxes and royalties since 1984 and supports hundreds of direct jobs.” 

Gas accounted for one third of all generation in the South West Interconnected System (SWIS) – WA’s primary power grid – in the year to December, and will become increasingly important as WA Government-operated coal-fired generation is phased out by 2030.  

A recent CME report found existing gas generation capacity in the SWIS needed to double by 2030 to enable renewable generation to reach 75 per cent by the end of the decade. 

“As we add more renewable generation into our power grids the need for a reliable form of fast-dispatching and affordable electricity becomes more and more important,” Ms Tomkinson said. 

“Gas is ideally suited to that role – especially in WA, where we have abundant reserves available to match demand with supply and a domestic reservation policy that ensures homes and industry maintain access to affordable energy.  

“The reality is that without gas firming our power grids, Australia will be forced to drastically slow down the rollout of wind and solar generation.” 

Gas is also displacing more emissions-intensive coal in the power stations of our regional trade partners, including Japan, South Korea and China.  

“Neighbouring countries with fewer renewable options are reliant on WA gas to help cut their own emissions,” Ms Tomkinson said.  

“The race to net zero is a global one and WA has a duty to help its trade partners meet their own climate targets through the continued supply of gas.” 

The North West Shelf Project is a joint venture involving five partners: BP, Chevron, Shell, Woodside Energy and a 50:50 joint venture between Mitsubishi and Mitsui & Co. 

Woodside operates the Karratha Gas Plant, which processes gas extracted by the project offshore. 

Media contacts: 

Josh Zimmerman j.zimmerman@cmewa.com / 0404 947 719   

Natasha Mutch n.mutch@cmewa.com / 0435 383 382 

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That is the key takeaway from a new report released today by the Chamber of Minerals and Energy WA (CME) that examines the State’s potential to play a leading role decarbonising the emissions-intensive steelmaking process.

CME Chief Executive Officer Rebecca Tomkinson said WA boasted a long history as the world’s largest iron ore exporter and had a unique opportunity to advance down the value chain if the State can begin refining green iron.

“Steelmaking accounts for between 6 to 9 per cent of global emissions, with ironmaking alone generating up to 90 per cent of that CO2,” Ms Tomkinson said.

“WA’s major iron ore producers are already exploring several new pathways to drastically reduce those emissions with promising early results.”

The report, which relies on analysis by Mandala Partners, identifies both the opportunities and actions required to capitalise on WA’s green iron potential.

Transformational reductions in ironmaking emissions will require plentiful and affordable low emission energy and the commercialisation of new technologies and processes. These are cutting edge technologies that will need to be proven for WA ores.

Under a prospective hydrogen-based ironmaking process examined in the report, investment of $37.5 billion is required by 2030 to produce an initial 4.5Mt of green iron.

The combined public and private investment would be spent on new energy infrastructure, green hydrogen and green iron production facilities, desalination plants and upgraded ports and roads.

“There are massive rewards on offer if we can get this right,” Ms Tomkinson said.

“Not only would it create tens of thousands of jobs and safeguard the future of our world-leading iron ore industry, producing green iron at scale would remove hundreds of millions of tonnes of global emissions.

“The impact is so large that if WA supplied 218Mt of green iron by 2050 – using about 40 per cent of the iron ore we produce today – global emissions would fall by 1.2 per cent.

“That would mean offsetting nearly every single tonne of Australia’s current 465Mt of domestic CO2 emissions.

In the nearer term, producing higher-grade iron ores like magnetite can reduce net steelmaking emissions today, with some products capable of reducing lifecycle emissions by around 10 per cent via existing production pathways.

“Ensuring the right policy and regulatory settings to unlock WA’s magnetite reserves is another key part of the decarbonisation puzzle,” Ms Tomkinson said.

The report’s 2030 Action Plan outlines three key priority areas for Government.

They include expanding R&D support, tax incentives and grants to fast-track Australian green iron technology and commercialisation, boosting government investment in lowering the cost of low-emissions energy and developing common-user infrastructure.

Fortescue Executive Chairman Dr Andrew Forrest:

“The world needs green iron. It will help ensure we can avert the most catastrophic, irreversible impacts of climate change.

“For Australia, it presents a once in a generation economic opportunity to build what could be our largest ever single industry, generating billions of dollars annually and creating thousands of highly paid jobs for generations of West Australians.

“Right now, there are other forward-thinking countries lining up to seize our green metals advantage. It is therefore imperative that Government joins industry in seizing this opportunity.”

“This report, in our view, provides a very conservative perspective on the economic opportunity for Western Australia. Our recent discussions in China make us feel confident that the opportunities are in fact much greater. With the right vision and support from government, we could be producing very significant quantities of green iron before 2030, securing Western Australia’s prosperity for generations to come.”

Rio Tinto Iron Ore Chief Executive Simon Trott:

“Rio Tinto is working on a range of projects with our customers and suppliers to reduce the carbon intensity of steelmaking, which contributes 8% of the world’s carbon emissions.

“We also recognise the task requires a collaborative effort, so we’re working with industry to find better ways to develop technology to produce less carbon intensive steel.”

BHP Asset President WA Iron Ore Tim Day:

“It’s fantastic to see the CME’s Green Iron Report shine a light on some of the work we’ve been doing in the lab and with our partners for several years now.

“It will take a united front to help fast-track near-zero emission-intensity pathways for steelmakers using Pilbara ores, but we think the potential outcomes could be game-changing.

“If we get it right, it could be a major step forward in setting up WA, Australia, and the world for a low greenhouse gas emission future.”

CITIC Pacific Mining Chairman and CEO Chen Zeng:

“Apart from identifying the pathway to achieve long-term green iron ambitions, this report’s recommendations recognise the contribution WA’s emerging magnetite sector is already making to decarbonisation of the steel industry.

“Right here and right now, investment in iron ore value-adding in this State is helping deliver lower emissions across the steel cycle – from the local mine pit to final overseas product.

“Emissions don’t stop at national boundaries. It’s critical we have policy settings which encourage the high-grading of WA’s very significant endowment of magnetite ore, in support of the energy transition.”

BACKGROUND

For the purposes of this report, and in line with the proposed definition for green steel under the International Energy Agency’s Breakthrough Agenda Report, green iron refers to iron produced in a near-zero emissions manner.

Media contacts: 

Josh Zimmerman j.zimmerman@cmewa.com / 0404 947 719   

Natasha Mutch n.mutch@cmewa.com / 0435 383 382 

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CME Chief Executive Officer Rebecca Tomkinson said it was now clear lithium prices were likely to be lower for longer but that the long-term prospects of the commodity remained strong.  

“Falling lithium prices have forced a growing number of lithium operations to suspend or cease operations over the past 18 months,” Ms Tomkinson said.  

“However, we know lithium remains a key commodity for the global energy transition and WA is well-placed to play a major role both mining and processing the crucial battery input.  

“CME has long advocated for State Government assistance to help lithium facilities through this difficult period and ensure they are well placed to quickly ramp up production when commodity prices improve.  

“Today’s announcement is welcome recognition of the commercial reality facing key players in WA’s resources sector. 

The support package for lithium miners in the ramp-up phase of production, as well as downstream processing facilities, includes temporarily waiving fees associated with Government Trading Enterprises such as Synergy and Water Corporation for up to 24 months. 

Port charges and mining tenement fees will also be waived for up to two years, while a $50 million loan facility will give miners that can demonstrate their long-term viability access to interest-free loans to sustain their operations.  

Ms Tomkinson said lithium was critical to global decarbonisation goals and WA had world-class supply at its fingerprints.  

“It’s important for governments to act when necessary to support the sector through periods of temporary market weakness and keep WA’s skin in the game for when the market recovers,” she said. 

Media contacts: 

Josh Zimmerman j.zimmerman@cmewa.com / 0404 947 719   

Natasha Mutch n.mutch@cmewa.com / 0435 383 382 

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CME Chief Executive Officer Rebecca Tomkinson said the proposed legislation failed to deliver meaningful improvements to environmental protections and would add to the considerable regulatory barriers already facing new resources projects.

“Poorly designed environmental policy risks derailing Australia’s entire net zero energy transition,” Ms Tomkinson said.

“CME supports Nature Positive reforms that are better for the environment and better for business.

“This legislation does not reach that threshold. It is bad for WA, bad for industry and will further harm a resources sector that is already confronting rapidly rising costs and falling commodity prices.

“A fully autonomous Federal EPA duplicates the rigorous project assessment process already in place in WA and opens the door for decisions on nationally significant projects to be made independent of our elected officials.

“It will lead to delays and push up the cost of doing business in WA, posing a serious threat to efforts to attract investment in critical minerals and low-emission energy.”

Media contacts:

Josh Zimmerman j.zimmerman@cmewa.com / 0404 947 719

Natasha Mutch n.mutch@cmewa.com / 0435 383 382

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CME Chief Executive Officer Rebecca Tomkinson said timely passage of the legislation would implement two key budget announcements from earlier this year aimed at capturing more investment to support strategic industries.

“Australia’s resources, including our critical minerals, have a key role to play in the energy transition,” Ms Tomkinson said.

“This measure recognises the Federal Government’s commitment to supporting industry to level the playing field in what is an intensely competitive global market.

“Passage of the legislation would set an important investment signal for further value adding activities and provide certainty to industry.”

The Bill aims to establish a Hydrogen Production Tax Incentive worth $2 per kilogram of renewable hydrogen produced between 2027-28 and 2039-40 for up to 10 years per project.

It would also establish a Critical Minerals Production Tax Incentive worth 10 per cent of processing and refining costs for designated critical minerals refined between 2027-28 and 2039-40, again for up to 10 years per project.

Ms Tomkinson said the significant incentives were important but represented one part of a much broader puzzle.

“WA is competing against jurisdictions that are rolling out the red carpet for downstream processing, including through fast-tracked project assessments, financial assistance and the provision of turnkey industrial land,” Ms Tomkinson said.

“Access to low-emission, reliable and internationally competitive energy prices are another important factor for businesses determining the best location for value-adding industry.

“It is therefore vital that Government support extends beyond production tax credits.

“To capitalise on opportunities presented by the net zero transition, it is more important than ever that both State and Federal policy settings are aligned in support of the resources sector.”

Media contacts: 

Josh Zimmerman j.zimmerman@cmewa.com / 0404 947 719   

Natasha Mutch n.mutch@cmewa.com / 0435 383 382 

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