Mr Trott, who is the Chief Executive of Rio Tinto Iron Ore in Western Australia, will remain at the helm of the CME board for a second year. 

DEVELOP Global Limited Managing Director Bill Beament and Hancock Prospecting Group Projects Chief Executive Officer Sanjiv Manchanda were also re-elected as Vice Presidents.  

The decision at CME’s 124th AGM to stick with an unchanged senior leadership team comes during a period of significant upheaval and uncertainty for the WA resources sector.  

“For more than a century CME has advocated for policy settings to support a resilient resources sector that drives economic and community benefits across the State and Australia,” Mr Trott said.  

“In navigating an increasingly uncertain global outlook, the role of the CME remains as important as ever. 

“I look forward to working alongside Rebecca and the rest of the executive council to ensure our sector continues to be a key contributor for decades to come.” 

Mr Trott has spent more than 20 years at Rio Tinto in a variety of operational, commercial and business development roles spanning a range of commodities.  

CME Chief Executive Officer Rebecca Tomkinson congratulated Mr Trott on his re-election.  

“Simon’s experience and breadth of knowledge has been invaluable to the CME leadership team and we are fortunate he will continue to play a key role guiding the organisation’s strategic direction,” Ms Tomkinson said. 

“The WA resources sector injected more than $150 billion into the national economy last year, paid more than $50 billion in State and Commonwealth taxes and royalties and supported nearly one third of all WA jobs.  

“We’ve become accustomed to that kind of contribution from our sector but it shouldn’t be taken for granted.  

“The entire CME leadership team is committed to working tirelessly to ensure the challenges now confronting industry remain front of mind for policymakers and that we don’t miss the immense opportunity presented by the transition to net zero.” 

Media contacts: 

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

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

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Following detailed analysis of yesterday’s announcement, CME notes exemptions exist for iron ore, gold, LNG, bauxite, alumina and critical minerals including lithium and rare earths.

CME Chief Executive Officer Rebecca Tomkinson said the exemptions highlighted the ongoing significance of minerals and energy produced in WA to the world’s biggest economy.

“These exemptions are recognition that commodities like those we produce cannot simply be conjured out of thin air,” Ms Tomkinson said.

“WA is one of the world’s leading mining jurisdictions and remains well positioned to supply our trading partners – including the US – with minerals and energy central to our daily lives.”

While the WA resources sector appears to have escaped direct US import duties, Ms Tomkinson cautioned the outlook remained uncertain.

“A return to protectionism and import tariffs is a concerning backwards step that threatens to slow global growth,” Ms Tomkinson said.

“Significant tariffs placed on many of WA’s key trading partners – including China, Japan and South Korea – may reduce economic output and result in lower demand for WA’s key commodity exports.

“A broader trade war leading to escalating tariffs could substantially damage an economy as trade- exposed as WA.

“In an increasingly uncertain global environment, Australia must focus on the things we can control.

“The highest priority to ensure the ongoing competitiveness of the WA resources sector must be a laser-like focus on reducing costs.

“That includes speeding up project assessments, rapidly bringing down the price of electricity and implementing harmonious workplace settings that prioritise a return to productivity-driven wages growth.”

Following Prime Minister Anthony Albanese’s proposal to create a Strategic Critical Minerals Reserve in response to US tariffs, CME is working to engage with the Government to ensure the policy delivers positive outcomes for industry.

“It is vital that any intervention improves the economics of WA critical minerals projects rather than placing additional barriers in the path of proponents,” Ms Tomkinson said.

“Western Australia has significant critical minerals deposits and is a major producer of a wide range of the commodities needed to support the energy transition.

“This means WA is extremely well placed to help diversify supply chains for a wide range of goods including wind turbines, batteries, defence and medical equipment.”

Media contacts: 

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

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

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After strong commodity prices helped the Commonwealth record its first consecutive surpluses in nearly two decades in FY23 and FY24, the resources sector is forecast to again make a significant contribution to the national balance sheet through taxes and royalties in FY25.

Around one quarter of corporate tax comes from the resources sector, while workers in Australia’s highest paying industry are also an important source of income tax.

That revenue has helped the Commonwealth fund a range of cost-of-living support for Australians including $17.1 billion in new income tax cuts, a $1.8 billion extension of electricity bill subsidies, an $8.4 billion expansion of Medicare bulk-billing, $689 million to cap PBS medications at $25 and $427 million to increase childcare subsidies.

CME Chief Executive Officer Rebecca Tomkinson also welcomed confirmation of several Future Made in Australia measures in the Budget, which address a range of recommendations in the Chamber’s Federal Pre-Budget Submission.

However, she said substantial work remained to improve Australia’s investment attractiveness and ensure the resources sector remained well-positioned to continue supporting national prosperity into the future.

“Easing the immediate cost of living burden on struggling families is essential,” Ms Tomkinson said.

“But the best way to deliver long-term, sustainable cost of living relief that doesn’t push the Federal Budget further into deficit is by supporting industry to grow.

“Successful businesses can pay their workers higher salaries. The WA resources sector is a shining example, supporting 6 per cent of all jobs in Australia and offering average earnings 57 per cent higher than the national average.

“The minerals and energy produced in WA are also critical ingredients in low-emission technology including solar panels, wind turbines and batteries, helping both Australia and the rest of the world to decarbonise.

“We know the globe needs our resources and the Commonwealth has acknowledged it needs the private sector to ‘lean in’ and invest to ease pressure on the national balance sheet.

“The missing piece is fundamentals that give business the confidence to deploy their capital in Australia – including affordable and low-emission energy, efficient project assessments and stable and predictable workplace laws and environmental reforms.”

Key recommendations from CME’s Pre-Budget Submission that were not addressed include cutting Australia’s corporate tax rate to a more globally competitive 25 per cent, increasing the Fringe Benefit Tax concession for employer-sourced housing in remote areas and committing to the repeal of recent IR reforms that have reduced the competitiveness and productivity of the WA resources sector.

Key measures in the Budget include:

• Legislation of the Critical Minerals Production Tax Incentive ($7 billion over the 11 years from 2023-24) and Hydrogen Production Tax Incentive ($6.7 billion over the 10 years from 2024-25).

• Green Aluminium Production Credit – $2 billion available from 2028 to support Australia’s aluminium smelters to transition to renewable electricity.

• Green Iron Investment Fund – $1 billion to support “early mover green iron projects and help overcome the initial capital hurdle of investment”. Up to $500 million has already been allocated to the Whyalla steelworks.

• Green Metals Innovation Fund – $750 million to develop and commercialise green metal technologies and processes, including funding for pilot and demonstration projects.

• Hydrogen Headstart Fund – up to $814 million awarded to the 1,500MW Murchison Green Hydrogen Project in WA in production incentives to use wind and solar power to create green ammonia for export.

• Clean Energy Manufacturing Fund – $500 million to support clean energy manufacturing, including wind tower steel fabrication, battery and storage technologies, hydrogen electrolysers and more.

• Low Carbon Liquid Fuels – $250 million in grant funding to accelerate the domestic supply of sustainable fuel and renewable diesel to benefit transport and mining sectors.

• Capacity Investment Scheme (CIS) – four battery projects totalling 654MW successfully bid for support in WA’s first tender.

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 $150 billion spend includes wages to direct employees ($19.8 billion), money spent with local businesses, local governments and on community initiatives ($79.3 billion) and taxes and royalties paid to the State ($12.7 billion) and Federal ($37.7 billion) governments.

Nearly $90 billion of the direct spend occurred in WA, where the resources sector continues to support three in 10 jobs and account for one third of the WA Government’s general revenue.

The $12.7 billion in State royalties and taxes paid by the sector in FY24 were enough to cover the salaries of all WA’s police and public sector teachers, nurses and doctors. The $37.7 billion that went to the Federal Government was nearly enough to fund total Medicare benefits and services.

CME Chief Executive Officer Rebecca Tomkinson welcomed the record result but cautioned it was the outcome of decades of productivity-enhancing investment which was now under serious threat.

“These figures reflect a high-water mark for the resources sector but the tide has now decisively turned,” Ms Tomkinson said.

“Direct spending by the WA resources sector is up 13 per cent compared to FY23 while export values are down 7.5 per cent, squeezing margins and driving project closures.

“That is the reality politicians need to keep front of mind as industry now confronts falling commodity prices, rapidly rising costs, blowouts to project assessment timeframes and uncertainty over environmental reforms.

“The global energy transition should make WA a hotspot for growth and investment. Instead, sections of our sector are in a battle for survival that makes supportive industry settings more important than ever.”

The surveys found the WA resources sector employed more than 111,000 direct FTE workers nationally in FY24, while supporting an additional 730,000 jobs. That is equivalent to 6 per cent of total Australian employment.

Comparing a matched sample of 26 companies captured by both the FY22 and FY24 surveys found that average wages paid to WA resources workers have increased by 14 per cent over the past two years, substantially outpacing Perth’s historically high inflation of 9.7 per cent in the same period.

“The sharp rise in wages is clear evidence that when resources companies do well, their workers do well,” Ms Tomkinson said.

“These wage increases were achieved through direct bargaining with employees and without union interference.

“It’s the same formula that has been in place for decades and has led resources workers to enjoy wages 57 per cent higher than the national average.”

The majority of the sector’s direct spend – $88.2 billion – occurred in Western Australia. It included money spent with 18,077 local businesses and 36,196 contractors onsite, 101 local councils and support for 1,937 community organisations and charitable causes.

“Mining is an integral part of the fabric of this State and the initiatives and causes supported by industry play a vital role enhancing our quality of life and improving access to education, healthcare, sporting pursuits and culture and the arts,” Ms Tomkinson said.

Click here to view CME’s Economic Contribution Fact Sheets.

BACKGROUND

58 member companies representing nearly 90 per cent of WA’s royalty revenue receipts participated in the 2023-24 Economic Contribution surveys, meaning the sector’s total expenditure, as well as the overall size of the workforce, will be even higher.

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 1500MW Murchison Green Hydrogen Project has been selected for support through the Hydrogen Headstart fund and will receive $814 million in production incentives to use wind and solar power to create green ammonia for export.   

On Thursday it was also confirmed four battery projects totalling 654MW have successfully bid for support through the Commonwealth’s Capacity Investment Scheme (CIS) in WA’s first tender, exceeding the planned tender size of 500MW. 

It was also announced Simcoa, Australia’s only silicon manufacturer, would receive $39.8 million through the Powering the Regions Fund (PRF) to expand charcoal production at its Kemerton facility to replace the use of coal.  

CME Chief Executive Officer Rebecca Tomkinson said each of the three announcements supported aspirations to establish WA as a global leader in low-emission manufacturing.  

“It is encouraging to see the Federal Government backing up its words with actions and recognising the role it will be required to play to help WA become a green energy superpower,” Ms Tomkinson said. 

“However, the scale of the task ahead remains enormous. Realising WA’s potential will require a sustained focus on both incentivising new future-facing industries and ensuring the fundamentals are in place to support the continued success of our existing resources operations. 

“The most basic building block is energy that is affordable, reliable and low-emission. Unfortunately, WA is currently seeing costs skyrocket.  

A CME report examining the decarbonisation of the South West Interconnected System (SWIS) found current and planned battery storage capacity was likely to be sufficient until 2030 but transmission and generation investment was urgently required. That included a six-fold increase in wind generation capacity and doubling of both solar and gas-fired generation. 

“CME has consistently called for the WA Government to urgently release a draft transmission masterplan for the SWIS that outlines exactly where and when the new high-voltage lines will be constructed,” Ms Tomkinson said.  

“Without that blueprint, it is almost impossible to attract investment in large-scale solar and wind generation.  

“Wind is particularly important to ensure WA has a source of low-emission electricity when the sun isn’t shining and would be ideally suited to future support through the Commonwealth CIS. 

“Uncertainty over the future availability of low-emission energy is having a chilling effect on investment in the kinds of industries WA is desperate to attract and acting as a major barrier to moving further down the value chain into processing and refining the raw materials we have mined here for generations.” 

Media contacts: 

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

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

The post Commonwealth support bolsters WA’s green energy credentials but much work remains   appeared first on The Chamber of Minerals and Energy of Western Australia.

CME Chief Executive Officer Rebecca Tomkinson said local production of low-emission metals offered immense potential for Western Australia to capitalise on its position as a leading global supplier of both iron ore and alumina.  

“Decades of sustained investment in our upstream mining capability means WA has built a strong competitive advantage and is well positioned to be a first mover in the green metals space,” Ms Tomkinson said.  

“However, transformational breakthroughs in green metals production requires both the development and commercialisation of new technologies and processes. 

“Commercialisation is particularly important, as even the best technologies cannot solve the world’s emissions challenge if they cannot be produced at a competitive cost. 

“These activities are neither cheap nor easy, which is why CME has been advocating for expanded R&D support, tax incentives and grants to fast-track the development and commercialisation of homegrown technologies.  

“Many of our major iron ore producers are already investigating cutting-edge methods to slash emissions from the refining of Western Australian ores and should be prioritised for support through this new fund.” 

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

In December, CME released a report that found large-scale production of green iron in WA could reduce global emissions by 1.2 per cent by 2050 – effectively offsetting nearly every tonne of CO2 currently produced in Australia. 

The prospective new industry would also generate $74 billion in economic value and support 19,600 direct jobs.   

While welcoming the fund, Ms Tomkinson stressed developing new pathways to produce green metals was just one piece of the puzzle.  

“Just as important as proving these technologies is ensuring industry has access to the affordable, reliable and low-emission energy that will inevitably be required to run it,” Ms Tomkinson said. 

“Without cost-competitive electricity, Australia has no hope of attracting the investment required to move into green metals manufacturing. 

“Similarly, without a continued focus on the fundamentals underpinning our existing resources sector we will struggle simply to maintain our current industrial base.  

“Bringing down energy costs, slashing project assessment timeframes, providing clarity over environmental reforms and unwinding harmful recent industrial relations changes must all be first order priorities for the next Federal Government.”  

Media contacts: 

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

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

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During his time as both State Development Minister and Premier, Mr Cook has demonstrated an appreciation for the immense contribution of the WA resources sector, as well as the challenges and opportunities facing industry.  

CME Chief Executive Officer Rebecca Tomkinson said WA Labor’s election victory came at a pivotal time in the State’s history and it was vital the returned Government quickly set to work delivering on its plans.   

“Premier Cook has outlined an ambitious vision to expand the State’s mining and manufacturing bases and produce more goods – including batteries, wind turbines and transmission lines – here in WA,” Ms Tomkinson said. 

“Key to realising those goals is a rapid acceleration in WA’s energy transition to deliver electricity that is low-emission, reliable and internationally cost-competitive. 

“It will also require much greater access to well-located, development-ready industrial land and an ongoing focus on sharply reducing project assessment timeframes while maintaining our high standards of protection.” 

WA Labor made a range of election commitments in line with CME advocacy, including: 

• No new taxes or royalties targeting the WA resources sector. 

• Doubling the Strategic Industries Fund to $1 billion for the development of turnkey industrial land. 

• Developing a Green Iron and Steel Action Plan as part of a broader Made in WA strategy to expand domestic manufacturing capability.  

• Reducing the royalty rate on vanadium products to 2.5 per cent, with no royalties for midstream production of vanadium electrolyte. 

• $13 million for upgrades to ease congestion and improve safety at the entries of the Kwinana and Kemerton Strategic Industrial Areas. 

• $15.5 million for upgrades to Derby and Wyndham ports to support their First Point of Entry designation.  

• $60 million for a second round of the Investment Attraction Fund’s New Energies Industries stream.    

• $9 million to double funding available through the Exploration Incentive Scheme. 

• $1.2 million to develop an Advanced Biofuels Strategy to help unlock low carbon liquid fuels. 

Ms Tomkinson said CME looked forward to working with the Cook Government on the implementation of each election commitment, as well as to address outstanding recommendations from CME’s October Pre-Budget Submission. 

“The Premier’s first priority must be the delivery of a draft master transmission plan for the South West Interconnected System to provide certainty and unlock investment in large-scale wind and solar generation,” Ms Tomkinson said. 

“So much of the Premier’s plans for WA rely on his government delivering affordable, low-emission energy. Without it, we have no hope of making more things here in WA and will struggle just to hang on to our existing manufacturing base. 

Ms Tomkinson encouraged Premier Cook to continue to stand up for WA’s interests in Canberra. 

“The Premier has been a strong advocate for the importance of our State’s resources sector to the Federal Government and it is critical he continues to fight for sensible and supportive Commonwealth policy,” Ms Tomkinson said. 

“That must include repealing productivity-killing industrial relations reforms and changes to improve and streamline project assessment processes, enhancing environmental outcomes while eliminating duplication and providing certainty over timeframes.”  

Media contacts: 

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

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

The post Re-elected Cook Government must get to work accelerating energy transition, preparing industrial land and further streamlining approvals appeared first on The Chamber of Minerals and Energy of Western Australia.

The latest data shows the midpoint of the gap in average total remuneration between male and female workers in the mining sector in FY24 was 19.8 per cent. The midpoint of the average gender pay gap across all industries was 12.1 per cent.  

Encouragingly, the report found the midpoint of the average gender pay gap in the mining sector had fallen by 1.6 percentage points over the past year, one of the best results for an individual industry and well above the nationwide fall of just 0.2 percentage points.

In total, 57 per cent of mining companies improved their average gender pay gap over the past year – slightly outpacing overall improvement of 56 per cent. 

It is important to note the data does not compare the pay of men and women performing the same job. Equal pay in those circumstance is a legal requirement – and one stringently upheld by the resources sector. 

Instead, the data examines the difference in earnings between all men and all women across all roles. 

Despite recent improvements in female participation, CME Chief Executive Officer Rebecca Tomkinson said men continued to outnumber women in the resources sector, a trend that carried over into senior roles and was the primary driver of the pay gap. 

“Closing the pay gap in a traditionally male-dominated industry like mining will not be achieved overnight but women are increasingly voting with their feet to join a sector that has demonstrated its commitment to boosting female participation,” Ms Tomkinson said. 

“CME’s most recent Diversity and Inclusion Report found 5437 women took up jobs in the WA resources sector between 2021 and 2023 – by far the best result we’ve ever recorded. 

“Women now account for just under a quarter of the WA sector’s workforce (24.8 per cent). That is an improvement of 3.3 percentage points in just two years, and up from 19 per cent in our first survey in 2013.” 

Ms Tomkinson said a recent uplift in women working in trades-focused and senior jobs was especially encouraging and, over time, would help address the underlying causes of the pay gap.  

“Women held nearly one third of board roles (32.8 per cent) in 2023, up from 24.4 per cent in 2021,” Ms Tomkinson said. 

“Women in management positions increased from 20.7 per cent to 23.5 per cent in the same period, while 21.4 per cent of machinery operators and drivers were female in 2023 – up from 17 per cent in 2021.” 

Ms Tomkinson said growing flexibility in FIFO rosters and generous parental leave provisions were evidence of the sector’s focus supporting women throughout all stages of their careers.  

“Women remain the predominate caregivers for their children and in many instances stop working for a period to raise young children,” Ms Tomkinson said.  

“This can contribute to the pay gap for women across all industries, but the resources sector has some of corporate Australia’s most accommodating policies and practices in place to encourage retention and to create a more family-friendly work structure.”    

The WGEA report also confirmed mining was the best paid industry in Australia, with average total remuneration of $195,141 – around 68 per cent higher than the national average of $115,828

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 Whyalla Steelworks in South Australia was today awarded half of the $1 billion available through the fund, which comes as part of a multi-billion government package to prevent the facility from closing. 

CME Chief Executive Officer Rebecca Tomkinson said it was pleasing to see the Federal Government support the South Australian community of Whyalla, but stressed that WA was the sensible choice for funding through the new measure in order to fully embrace Australia’s green iron potential and the significant opportunity it creates for jobs, the economy and global decarbonisation.

“Western Australia is already the iron ore capital of the world. It’s well established that we are best placed to become a significant manufacturer of green iron,” Ms Tomkinson said.

“As the world’s leading iron ore producer, we have strong trading relationships with steel mills across Asia that are looking to decarbonise their operations.

“Many of our members have also already invested significant time and money researching and developing prospective green iron pathways, including through partnerships with universities.

“The WA Government has also shown strong support for green iron, most recently through its $75 million commitment to the NeoSmelt project in Kwinana.”

The CME’s Green Iron report, released in December, found large-scale production of green iron in WA could reduce global emissions by 1.2 per cent by 2050 – effectively offsetting nearly every tonne of CO2 currently produced in Australia.

It would also generate $74 billion in economic value and supporting 19,600 direct jobs.

“WA’s iron ore producers appreciate green iron’s potential and have taken significant strides towards realising the benefits on offer,” Ms Tomkinson said.

“It is vital they are now prioritised for support through this new fund to accelerate the commercialisation of new technologies and processes suitable for WA iron ores since this is the first step in realising green iron opportunities in Australia.

“It is equally important the Federal Government commits to ensuring Australia gets the fundamentals right to maintain and expand our existing mining operations. 

“That means speeding up project assessments, driving down energy costs, providing certainty over environmental reforms and repealing productivity-killing industrial relations changes.

“There can be no downstream processing – including green iron – without the mines that supply the raw materials.”

Media contacts: 

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

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

The post WA at the heart of green iron potential appeared first on The Chamber of Minerals and Energy of Western Australia.

CME Chief Executive Officer Rebecca Tomkinson said the deferral was the latest setback for a project that has already spent six years undergoing environmental assessment. 

“Rigorous assessment processes are important to uphold Australia’s world-leading environmental standards but the North West Shelf Project Extension has now been waiting an unacceptable six years,” Ms Tomkinson said.  

“Delays like this do nothing to improve environmental outcomes – but they do significant damage to our ability to attract international investment.”  

The North West Shelf Project Extension received environmental approval from the WA Government in December following a lengthy and robust assessment. 

“The latest delay at a Federal level illustrates once again how duplicative processes act as a handbrake on much-needed development,” Ms Tomkinson said. 

“In a context of declining productivity and rising costs, late-stage project delays fly in the face of the certainty businesses are crying out for. 

“Major project investment decisions take many years and involve significant upfront risk. The ability to provide process and timeline certainty can be the difference between that capital being deployed here in WA or heading overseas.”  

Ms Tomkinson said WA was forecast to face a gas deficit from the end of the decade, with the situation even worse on the east coast.    

“Ensuring we have an affordable, low emission and reliable supply of energy – which the North West Shelf Project Extension will enable – is vital to securing Australia’s economic prosperity,” Ms Tomkinson said. 

“Not only is gas critical to firm up renewables in low-emission electricity grids, it is also a key industrial feedstock. That includes for the refining of critical minerals required for everything from wind turbines to submarines.”    

Media contacts: 

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

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

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