Western Australia’s resources sector injected a record A$150-billion into the national economy in the 2023/24 financial year, marking the largest outlay in a decade of economic contribution surveys compiled by the Chamber of Minerals and Energy WA (CME).

The direct spending included A$19.8-billion in wages to employees, A$79.3-billion on local businesses, councils, and community initiatives, and A$12.7-billion and A$37.7-billion in royalties and taxes paid to the state and federal governments, respectively.

Nearly A$90-billion of the expenditure remained in Western Australia, where the resources industry continues to underpin three in ten jobs and generate a third of the state government’s general revenue. The A$12.7-billion in state royalties and taxes alone could have covered the salaries of all Western Australia police officers, public school teachers, nurses, and doctors, while the A$37.7-billion to the federal government was nearly enough to fund total Medicare benefits and services.

CME CEO Rebecca Tomkinson acknowledged the record contribution but warned that the sector faced mounting headwinds.

“These figures reflect a high-water mark for the resources sector but the tide has now decisively turned,” Tomkinson said.

“Direct spending by the WA resources sector is up 13% compared to the 2023 financial year, while export values are down 7.5%, squeezing margins and driving project closures.

“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 WA 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 survey found that Western Australia’s resources sector directly employed more than 111 000 full-time equivalent workers in 2024 while supporting an additional 730 000 jobs, equating to 6% of Australia’s total employment.

A comparison of 26 companies included in both the 2022 and 2024 financial years' surveys showed that average wages for Western Australia's resources workers have climbed 14% over the past two years, outpacing Perth’s inflation rate of 9.7% over the same period.

“The sharp rise in wages is clear evidence that when resources companies do well, their workers do well,” Tomkinson said.

“These wage increases were achieved through direct bargaining with employees and without union interference.

“It’s the same formula that has been in place for decades and has led resources workers to enjoy wages 57% higher than the national average.”

WA companies channelled A$88.2-billion into the State’s economy, benefiting 18 077 local businesses, 36 196 onsite contractors, 101 local councils, and 1 937 community organisations and charities.

“Mining is an integral part of the fabric of this State and the initiatives and causes supported by industry play a vital role in enhancing our quality of life and improving access to education, healthcare, sporting pursuits and culture and the arts,” Tomkinson said.