Western Australia made a significant contribution to Australia’s economy
MAX Plant Iron Ore Project

Western Australia made a significant contribution to Australia’s economy

The recent report released by the Chamber of Minerals and Energy of Western Australia (CMEWA), the mining, energy, and contractor industries in Western Australia made a significant contribution to Australia’s economy in the 2021-2022 period. The analysis, which included data from 71 Western Australian resources sector companies, revealed a direct contribution of $98.98 billion and the employment of over 69,000 full-time Australians.

The report’s findings were based on responses from CMEWA’s annual survey of ordinary member companies, supplemented by data from public company reports. CMEWA’s CEO, Rebecca Tomkinson, emphasised that these numbers provided a clear understanding of the day-to-day impact of the mining and resources sector on economies and communities across the country. She highlighted the remarkable efforts made by the industry, especially considering the challenges posed by the COVID-19 pandemic.

The economic factsheets derived from the data showed several key insights. The 71 CMEWA member companies directly contributed over $57 billion to the Western Australian economy. Additionally, these companies spent more than $47 billion on purchasing goods and services from around 14,000 businesses, supporting over 1,000 community organisations and 75 local governments nationwide. Moreover, they paid over $10.7 billion in wages and salaries to over 69,200 full-time Australian workers, with an additional 19,502 full-time on-site contractors employed.

The report also indicated that State Government payments amounted to approximately $11.7 billion, while more than $28.9 billion in taxes were contributed to the Federal Government. Furthermore, the supply chain spending by the 71 companies resulted in an additional 493,235 full-time jobs and contributed $78.37 billion in gross value to the Australian economy. This includes the demand for construction, exploration, mining support, financial, and professional services.

The impact of these companies extended beyond Western Australia, with a 7.7% contribution to Australia’s gross regional product. The report also provided insights into the geographic distribution of workers, revealing that Wanneroo in Perth had the highest concentration of mining and resources workers, while Mandurah emerged as the major hotspot statewide.

As CMEWA continues to collect data through its survey process, it can further analyse the economic contributions of member companies on a regional and political level. With over $148 billion worth of projects in the pipeline, the report suggests that these contributions are likely to persist as projects progress and operate under normal conditions. Furthermore, as the global adoption of digital technologies and efforts toward decarbonisation and net-zero emissions increase, Western Australia stands to benefit significantly from its abundant critical minerals.

The report’s comprehensive analysis covered more than 100 operational sites and multiple commodities across Western Australia, representing approximately 83% of the state’s resources sector by production. These findings underscore the substantial impact of the mining and resources industry on both the local and national economy.

For more information visit the CMEWA factsheet.