How mining has shaped Western Australia

Western Australia accounts for just over 10 per cent of the nation's population, but made up more than 45 per cent of national merchandise exports last year.

Rio Tinto plans to reduce its operating and support costs by more than $A4.8b by the end of 2014.

Rio Tinto plans to reduce its operating and support costs by more than $A4.8b by the end of 2014.

Western Australia accounts for just over 10 per cent of the nation's population, but contributed more than 45 per cent of the total national merchandise exports last financial year.

Western Australia certainly punches above its weight when it comes to the economy, reports Ryan Emery.

A new skyscraper along the Perth city skyline towers above the rest. It's occupied by the world's biggest miner: BHP Billiton. The company and its rival Rio Tinto have helped turn Western Australia into a resources powerhouse that's led to a population boom.

“It is significant that over the last 12 months that nearly all of the new jobs in Australia have actually been in Western Australia,” says WA premier Colin Barnett. “Other states have seen employment fall and in this state it's risen by nearly 70,000 new jobs.”

WATCH: Extended interview with Premier Colin Barnett:


In 2011 the state produced 488 million tonnes - a quarter of the world's iron ore. Overall the resource sector was worth $106 billion last financial year, helping WA's economy grow by 6.7 per cent that year.

The state's good fortunes are attracting over 1,500 people a week to Western Australia.

“The growth in the sector in the last 10 years has been absolutely phenomenal,” says Nicole Roocke, director of WA's Chamber of Minerals & Energy.

“We've seen increased numbers of women joining the sector, we've seen increased numbers of Indigenous people joining the sector. We've seen increased levels of community investment as well.”

FIFO WORKERS

Josie Price's husband Rod, a plumber by trade, is one of the state's 116,000 people employed by the sector. He works on an iron ore mine in the north - eight days on and six days back home.

It's a move that's doubled the family's income and helped with major home renovations.

“It's been good. It hasn't created too much of an upheaval in our little family arrangement. We chat all the time. He's on an eight and six roster so every second weekend he's home,” she told SBS.

Every week 58,000 workers fly to work from Perth airport to spend up to four weeks away.

The demand is so great that the airport has built a new terminal.

“It will predominantly service FIFO, regional services and cater for one million passengers a year on opening. That terminal can cater for two million people so there is capacity,” says airport manager Fiona Lander.

In Perth it is clear that mining has made an impact, with redevelopment on a massive scale. A new arena, hospitals under construction and even the Swan River is being transformed with a $440-million waterfront development.

But the opposition says the government is spending too much. The state is a record $18 billion in debt.

“Where that's gone, it's difficult to say, but the simple fact of the matter is that when the historical record is examined, you'll find that under Mr Barnett and this government, West Australians will pay for it for generations,” says opposition leader Mark McGowan.

But the premier says health costs and less GST revenue is to blame. He sees a rosy future for the state with $200 billion of new or expanding resource projects underway or planned.

“I think for the next 10, 20 years you're going to see very strong growth in China and look people were predicting that these were poor times last year when Chinese growth dropped to seven per cent. Well, frankly seven per cent growth is still very strong,” Mr Barnett told SBS.

And with a strong China comes a strong Western Australia.

But not everyone is benefitting from the mining boom in WA.

Watch part two of Ryan Emery's report on mining in WA:






A three-part SBS documentary on mining, Dirty Business, will conclude on SBS ONE on Sunday January 20th at 8:30pm. You can watch previous episodes here.



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4 min read

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By Ryan Emery

Source: SBS


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