Ruqayyah Snyder
Western Australia has a rich history of mining, with the industry transforming the state's economy. Gold finds in the 1890s brought unprecedented numbers of people and capital to the state. While gold mining declined after 1904, the state's mining sector developed into a world-scale industry after 1945. Western Australia is now a major player in the international mining industry, with the state hosting a huge amount of high-grade resources and some of the country's largest mines. The state's mining and mineral processing industries are dominant, with Western Australia being the world's largest iron ore supplier and holding 29% of the world's iron ore reserves.
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What You'll Learn
Iron ore
The history of iron ore mining in Western Australia dates back to the mid-20th century, with mining activities taking place at Wundowie and Koolyanobbing from 1948 to 1981. However, it was the discovery of iron ore deposits in the Pilbara region, such as the Mount Whaleback deposit in 1957, that truly kickstarted the industry. The lifting of the iron ore export embargo by the Australian government in 1960 further fuelled the development of the industry, and by the mid-1970s, iron ore production in Western Australia had reached 100 million tonnes.
The Pilbara region remains the primary hub for iron ore mining in Western Australia, with major producers such as Rio Tinto, BHP, and Fortescue Metals Group operating multiple mines in the area. The region boasts a vast network of integrated mining infrastructure, including processing hubs, rail networks, and port facilities. The Hamersley Basin in the Pilbara region is recognized as Australia's premier iron ore province.
The iron ore industry is vital for the global steel industry, as iron ore is a key ingredient in steelmaking. Iron is the world's most commonly used metal, and the demand for iron ore highlights the importance of Western Australia's mining sector in the global market.
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Gold
The outbreak of the Second World War saw the industry decline once more, and by the mid-1960s, production was at a low ebb. However, the discovery of nickel in the region and the advent of new technologies led to the reopening of many mines in the mid-1980s.
Western Australia is estimated to contain 60% of Australia's gold reserves, with 11 of the country's 14 largest gold mines. In 2015-16, gold was ranked as the third most valuable resource exported by the state, generating A$10 billion. The number of people employed in the state's gold mining industry rose to 36,087 in 2021-22.
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Petroleum
Western Australia's petroleum industry is the largest contributor to Australia's petroleum exports. The state's North West Shelf (NWS) is the primary location from which production originates, with oil exports shipped from Port Hedland. The industry extracts crude oil, condensate, and natural gas from petroleum reservoirs deep beneath the Earth's surface.
In 2006, Australia produced approximately 562,000 barrels of oil per day, with Western Australia as the leading oil and condensate-producing state. The Varanus Island plant supplies gas to mineral processing operations through the Goldfields Gas Pipeline, and to industrial and commercial customers in Perth and the southwest via the DBNGP.
The Western Australian government received A$4.9 billion in royalties from the state's mining and petroleum industry in 2019, a 288% increase from 2009. The industry directly employed an average of 135,001 people during 2019-20, a sharp increase from 85,163 in 2010.
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Mineral sands
Western Australia has large mineral sand deposits and is the world's leading supplier of mineral sands. The mineral sands industry in Western Australia began in 1949 at Cheynes Bay. The industry expanded in the 1950s with the exploitation of deposits around the Capel area, including Yoganup, Wonnerup, and Koombana Bay. A plant to produce titanium dioxide pigments from ilmenite was established at Australind in 1963. Discoveries of mineral sands deposits continued throughout the 1970s and 1980s, with deposits at Eneabba and Cooljarloo being exploited in 1974 and 1990, respectively.
In 2015-16, Western Australia's mineral sands industry was valued at $539 million, with exports to the USA, China, the Netherlands, the United Kingdom, and Saudi Arabia. In 2016-17, the state's mineral sands sector sold almost 1.4 million tonnes of material valued at around $554 million. China and the United Kingdom were the major export markets, accounting for 25% and 12% of total exports, respectively. Other major export destinations included Saudi Arabia (11%), the United States (11%), and the Netherlands (7%).
The mineral sands industry in Western Australia is dominated by two producers: Iluka Resources and Tronox Management, who produce the majority of the state's titanium minerals. GMA Garnet is another major producer and the sole producer of industrial garnet sand in the state. The mineral sands production in Western Australia largely consists of titanium minerals such as ilmenite, leucoxene, synthetic rutile, and zircon. Most of these minerals are used to produce titanium dioxide pigments, which are essential components of consumer products such as paint, plastics, and paper.
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Nickel
BHP, through its Nickel West operations, is a major player in Western Australia's nickel industry. Nickel West includes the Mount Keith Nickel Mine, Leinster Nickel Mine, Kambalda Nickel Concentrator, Kalgoorlie Nickel Smelter, and Kwinana Nickel Refinery. In 2008, Nickel West produced 85,800 tonnes of nickel. BHP has announced a temporary suspension of its Nickel West operations from October 2024, citing an oversupply of nickel and a drop in prices. The decision will be reviewed in February 2027, and BHP plans to continue investing $450 million annually in its nickel operations.
Western Australia's nickel resources are primarily found in komatiitic volcanic-hosted nickel-copper-platinum group element (Ni-Cu-PGE) sulphide deposits and lateritic nickel deposits. The Murrin Murrin and Ravensthorpe projects are the only producing lateritic nickel operations in Australia. Cobalt is also produced as a by-product in Western Australia's nickel mines, with 5,314 tonnes valued at $522 million produced in 2021-22.
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Frequently asked questions
Western Australia is the world's largest iron ore supplier, with multiple iron ore projects, especially in the Pilbara region in the north of the state. Other resources mined in Western Australia include nickel, copper, gold, and petroleum.
In the 2018-19 financial year, Western Australia's iron ore output was 794 million tonnes, which was down from the previous year's output of 839 million tonnes. In 2020-21, the output was 838.7 million tonnes.
Mining transformed the Western Australian economy. Gold finds in the 1890s brought unprecedented numbers of people and amounts of capital to the state. Gold mining declined after 1904, and Western Australia went through a painful period of structural adjustment over the following three decades. After 1945, the state's mining sector developed into a world-scale industry, with improved communication and transport connections to the rest of the world.
