Western Australia’s Mines and Petroleum Minister Norman Moore reported in late September 2011 that sales by the state’s resources sector reached a record A$101.2 billion during the 2010-2011 fiscal year. The figure “marked a major milestone for the state’s resources sector, which has rebounded strongly since the global financial crisis,” Moore said. “The 2010-2011 figures represent an increase of 39% compared to the previous year, which is particularly significant considering the 12% appreciation of the Australian dollar against the U.S. dollar during the same period.”
Most of the value increase came from the iron ore, petroleum and gold sectors, which combined accounted for 88%, or A$88.7 billion, of Western Australia’s mineral and petroleum sales.
Record resource sales also contributed to significant increases in Western Australia’s royalty revenue, which was boosted to almost $4.9 billion during 2010-2011. The government forecasts that Western Australia will receive $5.8 billion in royalties during the 2011-2012 financial year, which will account for almost 20% of the state’s budget.
Moore attributed sales increases by the state’s resources industry to ongoing growth in output and higher commodity prices. “This growth within the resources sector is vital to the state’s commitment for a high level of service delivery on targeted infrastructure development such as hospitals, transport infrastructure and future investment in energy and water,” he said. “The commitment to ongoing improvement to the approvals process and increased exploration activities, supported by the A$80 million Exploration Incentive Scheme through the state government’s ‘Royalties for Regions’ program, has facilitated this growth.”