he value of Western Australia’s mineral and petroleum industry reached a record $91.6 billion

in 2010. Iron ore remained the State’s most valuable resource in 2010 accounting for $48.5 billion or

53 per cent of all mineral and petroleum sales. Strong results were also recorded for the petroleum and gold sectors.

A robust Australian dollar did little to dampen returns to producers as commodity prices reached new highs in 2010 reflecting continued growth in demand for Western Australia’s mineral and petroleum resources. Higher commodity prices and increased volumes saw the value of the State’s resources industry in 2010 increase by 49 per cent over the previous year’s result of $61.5 billion. During the past ten years the value of Western Australia’s mineral

and petroleum industry has grown strongly achieving average annual growth of 15 per cent.

Iron ore, petroleum, and gold together accounted for

87 per cent or $79 billion of all mineral and petroleum sales in 2010. These three sectors continue to drive strong economic growth in Western Australia.

Western Australia leads all other states with regard to investment expenditure by the mining industry. In

2010, the State accounted for 62 per cent of national mining investment expenditure. According to ABS statistics, the value of private new capital expenditure by Western Australia’s mining industry amounted

to $24.5 billion in 2010, an increase of 13 per cent over the previous year. In the same period, mining accounted for 75 per cent of all business investment in Western Australia which totalled $32.9 billion.

Mineral and petroleum resources dominate the State’s exports, contributing a substantial 91 per cent towards the State’s total merchandise exports in 2010. China was again the State’s largest export market taking in 40 per cent of all merchandise exports.