THE latest edition of the WA Resources and Economics report has provided new evidence of the resource sector’s transition from construction to production, revealing an increase in exports and a decline in exploration activity.
Mining production, including oil and gas, increased by 2.7% in the December 2013 quarter, showing significantly greater performance over non-mining sectors, which increased by just .2%. Spending on exploration activity, however, fell by 6.2%, comprising primarily of a drop in petroleum exploration by 10.6%.
Reg Howard-Smith, CEO of the Chamber of Energy and Minerals of Western Australia, who commissioned the report in conjunction with KPMG, said the report highlighted the importance of the resource sector on the national economy.
“This quarter we observed modest growth nationally, with increases in GDP at 0.6 per cent, with mining production increasing 2.7%,” he said.
“The report is a timely reminder to all, that the health of the national economy remains reliant on the continued growth of the resources sector,” said Mr Howard-Smith.
Other key highlights from the report include:
- The State accounts showed that Western Australia’s output growth moderated to 5.1 per cent from the previous quarter and were 7.3 per cent higher than this time last year.
- Total iron ore production again surpassed the highest quarterly production level on record, rising by 3.8 per cent to 152 million tonnes.
- The Bureau of Resources and Energy Economics (BREE) have projected that Australian export revenues will grow at an annual average rate of 11 per cent to $294 billion in 2017-18.
For a full copy of the report, click here.