Western Australia’s resources sector has long been the engine room of the state’s economy, and the 2024-25 financial year proved that it remains remarkably resilient, even when the global market throws a few curveballs. While total sales of $220 billion didn’t quite reach the record peaks of previous years (which topped $250 billion), the sector continues to provide a massive boost to the state, supporting over 134,000 full-time jobs on-site.
So, what exactly happened in the mines and rigs across our vast state last year? Let’s break down the highs, the lows, and what it all means for WA.
The Glittering Success of Gold
If there was a “Player of the Match” for 2024-25, it would undoubtedly be gold. Driven by global geopolitical and economic uncertainty, gold prices skyrocketed, reaching an annual average of $4,366 per ounce. This pushed gold sales to an all-time high of $29 billion.
Local producers like Gold Fields, Genesis Minerals, and AngloGold Ashanti performed strongly, and new projects like Bellevue Gold helped boost the total amount of gold produced to about 209 tonnes.
Iron Ore and LNG: The Heavy Hitters
Our state’s two biggest exports continued to do the heavy lifting:
- Iron Ore: It remains the king of WA commodities, bringing in $122 billion. Even though demand from China’s property sector slowed down, we produced a near-record 864 million tonnes. This was supported by record production from Fortescue and strong numbers from BHP, which helped offset some losses Rio Tinto experienced due to mine transitions and rainy weather.
- Liquefied Natural Gas (LNG): Sales reached $36 billion, which is among the highest results on record. While we are producing slightly less gas as some older fields naturally decline, LNG remains a cornerstone of our export economy.
The Mixed Bag: Lithium, Nickel, and Alumina
It wasn’t all smooth sailing. Some sectors faced “tougher weather” due to global supply shifts:
- Lithium: In a strange twist, WA actually produced a record amount of lithium (3.85 million tonnes), but because there is currently an oversupply globally and weaker demand for electric vehicles, prices crashed. This meant sales fell to $4.3 billion—a huge drop from the $21.5 billion we saw just two years ago.
- Nickel: This sector had a very difficult year, with sales hitting their lowest level in 20 years ($2.1 billion). This was largely due to a massive increase in cheap nickel production from Indonesia, which forced some local mines to suspend operations.
- Alumina: This was the opposite of lithium. We produced the lowest amount of alumina in 25 years due to refinery closures and bauxite quality issues, but because prices were so high, it still recorded its second-highest sales value ever at $8.2 billion.
Jobs and the Future
Behind these massive billion-dollar figures are real people. The resources sector isn’t just about rocks; it’s about the 134,009 full-time workers on-site, plus thousands more in exploration and petroleum.
The state is also looking ahead, with $33 billion invested in new mining and petroleum projects this year alone. Currently, there are roughly $49 billion worth of projects either under construction or already committed, suggesting that the industry’s stability is set to continue.
Why the “Weak” Dollar is Good News
You might hear on the news that the Australian dollar is “weak” (averaging about 65 US cents last year). For the resources sector, this is actually a win. Because minerals are usually priced in US dollars, a lower Australian dollar means that when companies bring that money home, it converts into more Australian dollars to pay local wages and taxes.