Mining Sector Boosts WA Budget to a $5.7b Surplus
The 2021-22 State Budget confirmed that Western Australia has one of the strongest economies in the world. Many media outlets are dubbing our budget “the envy of the nation,” and the mining and resources sector is to thank for this success.
What is the State Budget surplus, and what is it used for?
The State Budget surplus represents funds that can be allocated for investing activities. It is not just “leftover cash” that the government can keep in their coffers.
WA will use the surpluses to invest in much-needed infrastructure to expand our economy further and improve the lives of Western Australians. Such as roads, train lines, hospitals and schools. Learn more about where the money comes from and goes in the State Budget here.
How did the mining sector contribute to the surplus?
Overall, the sector’s cumulative contribution was $12.58 billion. This accounts for more than 30% of the state government’s revenue, which (after complex calculations) is eventually funnelled into the surplus.
How did the mining sector achieve this success?
Unlike so many other industries across the world, the WA mining sector continued operating effectively throughout the pandemic.
The management of COVID-19 in WA always prioritised the health and safety of the workforce, and as a result of these protocols, operations weren’t affected as much as they were in other states and countries.
Also, the sector saw a positive commodity price cycle. This means that the prices of our main commodities, such as iron ore, lithium, nickel and gold, are sitting above long-running trends.
What does this mean for Western Australians?
The mining sector can continue to contribute to funding for health, education and other essential services. In particular, this includes investment in regional areas and relief for cost-of-living pressures.
What does this mean for the future of mining?
The State Budget plans for several initiatives to ensure the WA mining sector stays competitive on the global market for years to come. Also, there has been an increase in local uptake of apprenticeships and traineeships, helping to secure the future of skilled work in WA. Therefore, businesses should feel confident to start new projects with the knowledge that our skilled workforce is growing and eager.
Jobs in the WA Mines
Premium Mechanical Group is a leading supplier of high-quality maintenance solutions to the WA mining industry. We are just one of the hard-working businesses that fuel our thriving sector.
Are you interested in a career at Premium Mechanical Group? Contact us today.
