Western Australia’s resources sector achieved $238 billion in sales in 2023-24.
This is a strong result, but it is a decline from the peak levels of over $250 billion in recent years.
It was driven by the strong performance of:
- Iron ore: sales were $142 billion, the third highest ever for a calendar or financial year. This was supported by higher prices and record production of 866 million tonnes (Mt).
- Gold: achieved an all-time high of $21 billion in sales, driven by the highest gold prices ever recorded.
They were offset by weaker market conditions and prices for:
- LNG: sales dropped to $36 billion, down from a record $57 billion in 2022-23.
- Lithium: sales fell to $8.4 billion, compared to a record $21 billion in 2022-23.
- Nickel: sales were $3.9 billion, down from $5.7 billion in 2022-23 which was one of the highest levels in 15 years.
The weaker Australian dollar helped support the sector, as most commodities are priced in US dollars. The Australian dollar averaged US 66 cents during the financial year, down from US 68 cents in 2022-23, reflecting the strength of the US dollar amid inflation and rising interest rate expectations.
Values of major resource commodities compared for 2022-23 and 2023-24
Minerals
Minerals production led the way for WA’s resources sector in 2023-24 with $187 billion in sales, up $3 billion from 2022-23 but slightly below the record $193 billion in 2023.
Minerals made up 79% of all resources sector sales, consistent with the 10-year average.
Iron Ore
Value: $142 billion, the third highest on record and top commodity overall.
Quantity: a record 866 Mt, supported by record production from BHP mines offsetting lower output from Rio Tinto operations.
Prices: higher overall from a turnaround in the property sector and economic stimulus in China at the end of 2023 with US prices averaging $120/tonne, up from $110/tonne in 2022-23 and Australian prices averaging $180/tonne.
Gold
Value: $21 billion, an all-time high.
Quantity: 6.6 million ounces (204 tonnes), the lowest in seven years due to lower grades and disruptions at key operations.
Prices: reached new heights with US prices averaging nearly $2,500/ounce, and Australian prices averaging nearly $3,500/ounce, on global tensions and economic uncertainty.
Lithium
Value: $8.4 billion, down from $21 billion in 2022-23 but still the fourth highest on record.
Quantity: A record 3.6Mt of spodumene concentrate, supported by expansions at Pilgangoora, Wodgina, and Mount Marion, as well as first sales from Mount Holland.
Prices: declined to the lowest levels since the second half of 2021 due to oversupply and weaker electric vehicle demand.
Other Minerals
Alumina: $6.6 billion, steady year-on-year on the balance of higher prices from supply constraints in the first half of 2024 and reduced production (12.4Mt, a decade low) due to refinery curtailments and bauxite quality issues.
Nickel: $3.9 billion, down by one-third from $5.7 billion in 2022-23, with lower prices due to global oversupply and local production falling to 141kt amid operational challenges and mine closures.
Copper: $1.1 billion, the lowest since the Global Financial Crisis, with sales volumes at a 20-year low of 85kt as the DeGrussa project wound down.
Mineral Sands: $1.2 billion.
Salt: $814 million (a record high).
Coal: $463 million (a record high).
Manganese: $341 million.
Construction materials: $239 million (a decade high).
Cobalt: $223 million (down 40% from 2022-23).
Petroleum
WA’s petroleum sector achieved sales valued at $51 billion in 2023-24. This is the third-highest value on record, but a decline from the more than $70 billion in sales in 2022-23 and 2022.
The petroleum sector accounted for 21% of WA’s total mineral and petroleum sales, slightly below the previous year but consistent with the 10-year average.
LNG
Value: $36 billion, down from $57 billion in 2022-23 but still high historically.
Quantity: 47Mt, down from the record 50Mt in 2022-23 due to planned maintenance and natural field decline at the North West Shelf.
Prices: the lowest level in several years from muted demand, including a milder-than-expected northern winter.
Oil
Value: $2.5 billion, down from $3.2 billion in 2022-23.
Quantity: 3.2 gigalitres (GL), one of the lowest levels since the late 1980s due to planned maintenance at the Pyrenees floating, production, storage and offloading (FPSO) and a subsea water leak shutdown.
Prices: stable due to mixed factors, including slow economic growth, weaker demand, declining supply, and geopolitical uncertainties.
Condensate
Value: $8.4 billion, down from $8.7 billion in 2022-23 but still the fourth highest on record.
Quantity: 11.7 GL, consistent with recent levels as record production from the Ichthys FPSO was offset by lower output from the North West Shelf and Prelude.
Domestic gas
Value: reached a record high of $2.9 billion.
Quantity: at a five-year high due to the doubling of gas volumes from Pluto processed at the North West Shelf, new supply from the Walyering project, and increased output from Varanus Island following a significant outage in the previous year.
Prices: higher driven by increased demand for gas-fired generation and tighter supply conditions.
