WA resources companies pumped at least $150 billion in direct spending into the national economy in 2023-24 - the biggest outlay in 10 years of economic contribution surveys compiled by the Chamber of Minerals and Energy WA (CME).
The $150 billion spend includes wages to direct employees ($19.8 billion), money spent with local businesses, local governments and on community initiatives ($79.3 billion) and taxes and royalties paid to the State ($12.7 billion) and Federal ($37.7 billion) governments.
Nearly $90 billion of the direct spend occurred in WA, where the resources sector continues to support three in 10 jobs and account for one third of the WA Government's general revenue.
The $12.7 billion in State royalties and taxes paid by the sector in FY24 were enough to cover the salaries of all WA's police and public sector teachers, nurses and doctors. The $37.7 billion that went to the Federal Government was nearly enough to fund total Medicare benefits and services.
CME Chief Executive Officer Rebecca Tomkinson welcomed the record result but cautioned it was the outcome of decades of productivity-enhancing investment which was now under serious threat.
"These figures reflect a high-water mark for the resources sector but the tide has now decisively turned," Ms Tomkinson said.
"Direct spending by the WA resources sector is up 13 per cent compared to FY23 while export values are down 7.5 per cent, 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 surveys found the WA resources sector employed more than 111,000 direct FTE workers nationally in FY24, while supporting an additional 730,000 jobs. That is equivalent to 6 per cent of total Australian employment.
Comparing a matched sample of 26 companies captured by both the FY22 and FY24 surveys found that average wages paid to WA resources workers have increased by 14 per cent over the past two years, substantially outpacing Perth's historically high inflation of 9.7 per cent in the same period.
"The sharp rise in wages is clear evidence that when resources companies do well, their workers do well," Ms 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 per cent higher than the national average."
The majority of the sector's direct spend - $88.2 billion - occurred in Western Australia. It included money spent with 18,077 local businesses and 36,196 contractors onsite, 101 local councils and support for 1,937 community organisations and charitable causes.
"Mining is an integral part of the fabric of this State and the initiatives and causes supported by industry play a vital role enhancing our quality of life and improving access to education, healthcare, sporting pursuits and culture and the arts," Ms Tomkinson said.
Click here to view CME's Economic Contribution Fact Sheets.
BACKGROUND
58 member companies representing nearly 90 per cent of WA's royalty revenue receipts participated in the 2023-24 Economic Contribution surveys, meaning the sector's total expenditure, as well as the overall size of the workforce, will be even higher.
