For the sixth consecutive time, Western Australia’s budget has been underpinned by the strength of the state’s mining and resources sector, which helped to deliver a $3.2 billion surplus in 2023-24.
Mining royalties alone contributed $11.2 billion in government revenue.
The WA Government says the surpluses play a critical role in funding investment in infrastructure, as well as keeping debt under wraps and lower than all other Australian states.
According to the Association of Mining and Exploration Companies (AMEC), mining royalties consisted of $9.8 billion from iron ore, $533 million from gold, and $422 million from lithium.
AMEC CEO Warren Pearce says the government is investing in industrial land necessary for environmental reform, as well as a critical minerals advanced processing facility.
The WA Government has committed to invest $100 million towards the advancement of the facility — half of the expected cost. Western Australia will seek to obtain an additional $100 million from the Commonwealth.
“The state-of-the-art facility will assist Western Australia critical mineral developers to finalise their processing and refining methodologies and explore greater value adding opportunities,” Pearce says.
Meanwhile, a $500 million strategic industries fund will address under-investment in Western Australia’s industrial precincts and develop project-ready land to attract new investments.
It will also fund acquisitions and developments of industrial land, the provision of water and power supply, and case management of industry proponents.
The industries fund will include a $20 million investment in planning activities within the Goldfields and South West regions.
However, the AMEC notes state government has elected to hike mineral tenement rentals.
“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.”
To streamline approvals and deliver Vogel/McFerran reforms — aimed at making environmental assessment processes more efficient — $36.4 million will be invested over the forward estimates.
Meanwhile, $10.6 million will develop Environment Online — WA’s “one stop shop” for environmental assessments, approvals and compliance — and $14.1 million to establish cross-government triage teams to prioritise and support state proposals.
The Western Australian government says a $1.8 billion investment will be committed to diversify and decarbonise the state’s economy.
A $2.6 billion budget surplus has also been forecast for 2024-25.
Write to Aaliyah Rogan at Mining.com.au
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