Western Australia's traditional strength in iron ore and gas and global demand for battery minerals are expected to contribute to the federal government's coffers.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Dubbed the engine room of the national economy, WA business investment will rise by more than a quarter to around $63 billion by 2027-28, the highest level in more than a decade, according to the state budget released on Thursday
Resource-rich WA already accounts for nearly half of national exports and the state's exports were projected to grow in 2024-25 as lithium production ramps up and new iron ore production comes online.
A new $200 million critical minerals processing facility - subject to the commonwealth paying half - will help explorers and miners finalise their processing and refining methods to meet global demand for battery materials.
The budget also included plans to rewire the state for renewables and new energy-intensive projects such as hydrogen and green fertiliser production, with $324 million for transmission in the state's main electricity grid and $148 million for the Pilbara.
A pick-up in LNG exports from 2026-27 as production from the Scarborough/Pluto project comes online was also signalled.
Nickel prices were tipped to bottom out in 2024 and reach $US20,000 per tonne by June 2028, as oversupply in the market "disappears", according to the state's budget papers.
While some producers were looking for royalty relief, the centrepiece of the economic diversification budget was a $500 million fund to unlock project-ready industrial land for newcomers.
"Increasing WA's ability to not only mine and export critical minerals but to process them locally will allow us to fully embrace the opportunities that will come with the clean energy transition," economist Aaron Morey said.
Premier Roger Cook said the $500 million fund would open up industrial land across the regions and in Perth to attract major clean energy industries.
An initial $125 million will open up Latitude 32 in Kwinana, $20 million has been allocated to develop general industrial land in Karratha and in the Peel region, and $20 million for the Goldfields and South West.
With hopes for hydrogen production, which is a water-intensive industry, $320 million was allocated to upgrade vital water infrastructure.
Treasurer Rita Saffioti said streamlining approvals was crucial for potential investors, after a review found processes had become overly complex and were stifling investment without delivering environmental benefit.
"We're really keen to reduce delays in getting new projects off the ground, which will help us remain the engine room of the national economy while also diversifying and setting it up for the future," she said.
Some $36.4 million has been allocated to slash green tape and speed up approvals, with the treasurer promising the "immediate review and rapid up-front assessment" of applications.
Disappointingly, the government has chosen to once again hike mineral tenement rentals, Association of Mining and Exploration Companies chief executive Warren Pearce said.
A slowdown in exploration investment means many will feel the pain of higher fees on exploration licences at a time when raising capital has been extremely difficult, he said.
Underpinning a budget surplus, mining royalties were expected to contribute $11.2 billion to the state's expenses in 2023/24, mostly from iron ore.
Australian Associated Press
