The Chamber of Minerals and Energy Western Australia (CMEWA) reveals that Western Australian resources companies have put $150 billion in direct spending into the national economy in 2023-24.
This figure is the biggest outlay in 10 years of economic contribution surveys compiled by the CMEWA.
Nearly $90 billion of the direct spend occurred in Western Australia, where the sector continues to support three in 10 jobs and account for one-third of the state government’s general revenue.
CMEWA says the $150 billion includes wages to employees ($19.8 billion), money spent with local businesses, local governments, and on community initiatives ($79.3 billion), taxes and royalties ($12.7 billion), and federal governments ($37.7 billion).
The $12.7 billion in state royalties and taxes paid by sector were enough to cover the salaries of all Western Australia’s police and public sector teachers, nurses, and doctors. Meanwhile, the $37.7 billion was nearly enough to fund total medicare benefits and services.
CEO Rebecca Tomkinson says these figures reflect a high-water mark for the sector, but the tide has decisively turned.
“Direct spending by the Western Australia resources sector is up 13% compared to FY23 while export values are down 7.5%, squeezing margins and driving project closures,” Tomkinson says.
“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 Western Australia 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 2023-24 Economic Contributions surveys found the Western Australian resources sector employs more than 111,000 direct full-time-equivalent workers nationally in FY24, while also supporting a further 730,000 jobs. This is equivalent to 6% of the total Australian workforce.
Majority of the sector’s direct spend totalled $88.2 billion. It includes money spent across 18,077 local businesses and 36,196 contractors onsite in Western Australia, as well as 101 local councils and support for 1,937 community organisations and charitable causes.
The CMEWA is the leading advocate for the resources sector in Western Australia. It is a member-funded, not-for-profit organisation that represents the views of its members and advocates on their behalf.
Write to Aaliyah Rogan at Mining.com.au
Images: CMEWA
