WA’s resources sector made a significant contribution to the State’s economy in 2023-24 through:
- WA’s mining industry achieved another record level of employment with
134,871 full time equivalents (FTE) in 2023-24, reflecting strong levels of mining and construction activity in the State. - Employment in the petroleum sector dropped to 8,010 people in 2023-24, its lowest level since 2011-12.
- WA’s mineral exploration expenditure was $2.58 billion in 2023-24, an increase from 2022-23 but down on the record $2.6 billion spend in 2023.
- Petroleum exploration expenditure in WA continued its recovery from some of its lowest levels in a quarter of a century to be valued at $569 million in 2023-24 – its highest level in five years.
- More than $32 billion was invested in WA’s mining and petroleum industries throughout 2023-24.
- DEMIRS analysis of information on mineral, petroleum and associated infrastructure projects in the investment pipeline, shows that as of September 2024:
- There was $50 billion in projects committed and under construction, down from the $55 billion in projects in March 2024.
- The estimated capital cost of projects medium to longer-term possible and planned projects (i.e. undergoing scoping, pre-feasibility and definitive feasibility study) was $119 billion, down by around $800 million from March 2024.
Employment
Mining
WA’s mining industry set a record for jobs in 2023-24, with 134,871 FTE positions. This shows the ongoing strength of mining and construction activity in the State.
This is the seventh year in a row that mining jobs have grown, with record highs in the last five years. However, the rate of growth slowed to 5.8% in 2023-24, compared to 7.1% the year before.
The biggest contributors to mining jobs were:
- Iron ore: 62,950 FTEs
- Gold: 31,884 FTEs
- Lithium: 11,386 FTEs
- Nickel: 10,434 FTEs
- Alumina and bauxite: 7,021 FTEs.
Most minerals saw an increase in jobs compared to the previous year:
- Lithium: grew by over 3,000 FTEs
- Gold: grew by more than 1,800 FTEs
- Iron ore: grew by over 1,700 FTEs.
However, there were some industries that declined:
- Copper-lead-zinc: fell by about 500 FTEs, mostly due to the DeGrussa project closing in May 2023 and the Jaguar mine going into care and maintenance in September 2023.
- Alumina and bauxite: dropped by nearly 200 FTEs as Alcoa’s Kwinana refinery reduced production.
Mining full-time equivalent employment, annually, 2014-15 to 2023-24
Mining full time equivalent employment in 2023-24 by commodity
Minerals exploration
Minerals exploration jobs were 4,163 FTEs, continuing to drop after reaching a peak of nearly 4,700 FTEs in 2021-22.
Petroleum
Jobs in WA’s petroleum sector fell to 8,010 people in 2023-24, the lowest level since 2011-12. This drop is likely due to short-term factors like lower oil and gas prices, along with a longer-term decline in new oil and gas projects in the State.
Petroleum employed persons, annually, 2014-15 to 2023-24
Exploration
Minerals
WA’s mineral exploration spending reached $2.58 billion in 2023-24, an increase from 2022-23 and slightly below the record $2.6 billion set in 2023. This reflects efforts to find new mineral deposits and the impact of rising costs, including labour, equipment, and fuel.
This, in combination with reduced drilling activity and exploration employment, suggests WA’s exploration activity may have peaked in the current commodity cycle.
The main targets of exploration spending were:
- Gold: $884 million, its lowest level since 2019-20.
- Iron ore: $674 million, the highest in more than a decade.
- Other minerals (including lithium and rare earths): $575 million, a record high driven by forecast demand for electric vehicles and batteries.
- Nickel and cobalt: $236 million, down from recent 15-year highs due to market challenges.
- Copper: $162 million, lower than its 2021 peak of over $250 million.
Most spending focused on brownfields areas (existing deposits), which hit a record $1.84 billion in 2023-24. In contrast, greenfields (new deposits) spending dropped to $731 million. Brownfields exploration is often cheaper and less risky, making it more appealing in today’s higher-cost environment. Renewed interest in mature areas for minerals like lithium and rare earths has also contributed to this trend.
WA remains Australia’s top destination for exploration, accounting for 62% of the national spend, consistent with its long-term average.
Petroleum
Petroleum exploration spending rose to $569 million in 2023-24, the highest in five years and part of a recovery from historic lows. This increase was driven by a drilling program by INPEX Corporation in the Browse Basin (Ichthys project) and campaigns in the Perth Basin.
WA’s share of national petroleum exploration spending grew to 45%, recovering from its lowest level in 2022-23 but still well below its peak of 15 years ago. The increase was largely due to reduced exploration in the Northern Territory.
Investment
WA’s mining and petroleum industries attracted more than $32 billion of investment during 2023-24, continuing an upward trend that began in mid-2019.
The drivers of increased investment included:
- LNG: Woodside Energy’s Scarborough project and Shell’s Crux project
- Iron Ore: The Onslow iron ore project, which has now moved to the production phase, and Western Range iron ore project.
- Higher capital costs for mining construction projects from recent cost pressures.
Investment levels have grown steadily but remain about two-thirds of the peak levels seen during the mining boom a decade ago.
WA accounted for 62% of national mining and petroleum investment, reflecting stronger growth in spending compared to other states. This share was higher than the 10-year average but below the previous highs of 60–70% during the height of the mining boom.
The resources sector contributed 72% of total new capital expenditure in WA, lower than the peak contribution of more than 80% during the boom years.
DEMIRS also monitors and collects information on mineral, petroleum and associated infrastructure projects in the investment pipeline, and estimates the capital costs of these projects.
Analysis of this information shows that there was:
- Committed and under construction projects: estimated at $50 billion as of September 2024, down from $55 billion in March 2024.
- Medium-to-longer-term projects: estimated at $119 billion in September 2024, a slight decline from $119.8 billion in March 2024.
Several construction projects were completed and moved into production in 2023-24:
- Mineral Resources’ Onslow Iron Ore Project: first ore shipped in May 2024.
- Liontown Resources’ Kathleen Valley Lithium Project: produced its first spodumene concentrate in July 2024 and had an inaugural shipment in September 2024.
- Pilbara Minerals’ Pilgangoora 680 Lithium Expansion: officially opened in August 2024.
Some major construction projects were suspended or placed under care and maintenance:
- BHP’s West Musgrave Copper-Nickel Project: transitioned to care and maintenance in July 2024; with operations suspended in the December quarter 2024.
- Albemarle Corporation’s Kemerton Lithium Hydroxide Plant: construction halted on Trains 3 and 4 in 2024.
Newly announced medium-to-longer-term projects included:
- Legacy Iron Ore’s Mt Bevan Project
- Pilbara Minerals’ Pilgangoora 2000 Lithium Expansion Project
- Mineral Resources’ Lockyer Deep Gas Project
Some medium-to-longer-term projects will not be proceeding including:
- Technology Metals Australia’s Murchison Technology Metals Project: following a merger with Australian Vanadium.
- Reward Minerals’ Kunpupintil Lake Potash Project: the tenements were surrendered.
