news article

Maybe MAN are having problems with red tape, getting tenements granted, just a quess?

Iron ore, nickel drive resources boom

Kate Hayc**k
Thursday, 30 August 2007

THE latest figures from the Western Australia Department of Industry and Resources show the resources boom has reached unprecedented heights, with sales for resources increasing 25% to $A53.4 billion over the past year, however the State Government is facing criticism for doing little to ensure the good times continue.



While oil and gas was by far the biggest sector in value, bringing in $16.4 billion in sales, iron ore increased by a massive 24% to $15.8 billion with 258 million tonnes of the bulk commodity sold.

State Minister for Resources Francis Logan said the demand came mainly from China and other overseas destinations, and he expected another strong year from iron ore.

Nickel sales increased, a remarkable 110% increase in sales from $3.79 billion to $8 billion.

After nickel was alumina, up 17% to $4.8 billion, while gold sales increased 10% to $4.1 billion.

Other base metals including zinc and copper recorded a 71% increase, accounting for some $1.7 billion in sales.

Overall, the resources industry accounts for 88% of WA's exports, with the remaining 12% made up of wheat, wool, seafood and pearls.

However, the State Government is continuing to face criticism for its lack of investment in the future of the state's mining industry and an inability to deal with the regulatory issues which have been dogging the resources sector.

Association of Mining & Exploration Companies Policy and Public Affairs Manager Ian Loftus told MiningNews.net that while the figures were impressive, the State Government was not doing enough to ensure the boom would continue.

"What we're not seeing is an ongoing investment … to see the boom become sustainable," he said.

"The mining industry is an essential component of the state's economic development -mining pays for school, hospitals… essentially all the good social infrastructure in this state benefits from the mining industry."

Loftus said the boom benefited a narrow base of commodities and there was not enough development for many commodities.

"There are some serious stumbling blocks in the way [for] other commodities.

"Those stumbling blocks include unresolved native title issues and unresolved tenement applications – there are in excess of 17-18,000 tenements that haven't been approved yet," he said.

"Then there's the current proposal to include nearly 6 million hectares into conservation estate, effectively taking that land and jeopardising the ability of mining companies to develop that land."

Loftus said such impediments needed to be looked at to ensure the future prosperity of the resources industry.

He said AMEC expected the Government to champion the industry and look after the State's interests.

"That benefit won't come simply by sitting our hands and saying how wonderful the current situation is.

"More is needed," he said.

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