Western Australia’s 2024–25 Budget was released yesterday, with industry players welcoming another year of strong resources contributions.
WA announced a $3.2 billion surplus underpinned by the resources sector, which is expected to contribute $11.2 billion to the state by the end of the 3023–24 financial year (FY24).
Mining royalties alone are tipped to account for 26.5 per cent of government revenue, more than a quarter of the state’s earnings for the year.
Iron ore proved itself a king in the sector once again, with a $9.8 billion contribution to government revenue, followed by gold at $533 million and lithium at $422 million.
The Association of Mining and Exploration Companies (AMEC) and the Chamber of Minerals and Energy of Western Australia (CME) weighed in on the state’s minerals-heavy Budget.
CME chief executive officer Rebecca Tomkinson said the Budget highlights the minerals sectors’ ongoing contribution to WA’s economic and social health.
“The contributions of our members collectively enable the WA and Federal Governments to provide cost of living relief to WA families, fund our essential infrastructure, deliver frontline services in health, housing and education, and support our communities,” Tomkinson said.
“That’s all underpinned by factors such as the strong confidence of WA businesses, with resources at the top of that tree. There’s an expected 13.25 per cent increase in business investment this year – the highest in more than a decade.
Included in the latest Budget $500 million for the Strategic Industries Fund to deliver common-user and other enabling infrastructure at strategic industrial areas (SIAs) across regional and metropolitan WA.
“Turnkey SIAs which are ready to go with all necessary amenities are more likely to attract investment than a parcel of land that still requires infrastructure, facilities and associated approvals to get off the ground,” Tomkinson said.
“If it’s not turnkey there’s no certainty for industry and it risks a lot of wasted project time.”
Also included was the announcement of a $200 million new critical minerals advanced processing common user facility, co-funded by the Commonwealth.
“Government is investing in plug and play industrial land, desperately needed environmental reform and a critical minerals advanced process facility,” AMEC chief executive officer Warren Pearce said.
“This will support industry to deliver on a downstream reality for Western Australia and is a substantial investment in realising Western Australia’s critical minerals value-adding ambitions.”
Tomkinson warned that while some commodity prices were reasonably buoyant now, state and Federal Governments needed the agility to mitigate strong geopolitical pressures and keep Australia’s industry competitive across the board.
“This budget comes at a critical time for our state’s resources sector, with rising costs, falling commodity prices and strong global competition testing our industry’s resilience,” she said.
“For our sector’s contribution to jobs, local businesses, communities and government revenues to continue to grow we need the basics from the WA Government: efficient approvals, turnkey strategic industrial areas and a low emission, reliable and cost-competitive energy system.
Mineral tenement rentals were also a source of critique for industry bodies, as the Budget revealed rents will yet again face a price hike.
“While the mining industry continues to travel well, a slowdown in exploration investment means that many exploration companies will feel the pain of increasing fees on exploration licences at a time when raising capital has been extremely difficult,” Pearce said.
Also included in the Budget was $373 million for maintenance and upgrade projects at WA ports, as well as $36.4 million to cut green tape and speed up approvals for new mines.
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