Mining shaping modern Australia Illustration: Don Lindsay
Aaron Morey, the new chief executive officer of the Chamber of Minerals and Energy (CME), has expressed optimism about the future of Western Australia’s resource sector. He believes that WA’s wealth, built on bold initiatives, is still in its early stages. Morey highlighted the sector’s resilience and potential for growth, as demonstrated by its historical evolution and current opportunities.
When the CME was established in 1901, the construction of the Goldfields water pipeline was underway. Critics at the time warned that the project could lead to financial ruin for WA, fearing that the state’s gold resources would soon be depleted. They cautioned that West Australians would face a daunting challenge of repaying a £2.5 million loan—equivalent to nearly the entire annual budget of WA. Contrary to those fears, the Golden Mile in Kalgoorlie has experienced continuous mining operations since the completion of the pipeline, which remains a significant contributor to the state’s economy today.
Over a century later, the mining operations at the Super Pit continue to thrive, with drilling yet to determine the full extent of the orebody beneath it. In 2022, CME members contributed approximately $970 million weekly in taxes, royalties, and other payments to the government. This substantial financial input underscores the critical role that the resources sector plays in shaping WA’s economic landscape.
Future Opportunities in WA’s Resource Sector
Morey emphasized that WA’s understanding of its mineral wealth has evolved significantly. The state’s historical reliance on gold paved the way for iron ore, which helped define a robust infrastructure, while liquefied natural gas (LNG) has fueled ongoing development. He noted that WA is only beginning to explore its full potential, with vast resources still untapped.
The demand for a broader range of elements, driven by the global shift towards clean energy and advancements in artificial intelligence, presents significant opportunities for WA. Morey stated that almost the entire periodic table lies beneath the state, positioning it to meet the rising global demand for critical minerals. WA’s reputation as a reliable trading partner further enhances its strategic importance in diversifying mineral supply chains.
In the context of a sustainable future, WA’s resources are integral to the transition towards cleaner energy solutions. CME members are actively engaging in initiatives aimed at decarbonizing heavy industry, with the potential for major breakthroughs in lower-emissions technology originating in WA. The geology of the region not only supports mineral extraction but is also conducive to carbon capture and storage, offering additional avenues for innovation.
Addressing Challenges to Competitiveness
Despite the opportunities ahead, Morey acknowledged that WA’s competitiveness is under threat. Rising energy costs, slow project assessments, and the misuse of legal avenues to impede development pose significant challenges. He emphasized the necessity for both government and industry to collaborate effectively to navigate these hurdles.
To regain competitiveness, Morey advocates for streamlined assessment processes that are rigorous yet not redundant. He called for approvals based on scientific evidence, free from ideological influences, and highlighted the ongoing role of natural gas in maintaining affordability and reliability in future low-emission energy grids.
As CME CEO, Morey aims to work constructively with government and industry stakeholders to advocate for policies that enhance productivity and attract new investments. He drew parallels between the pioneering spirit of those who supported the Goldfields pipeline and the necessary bold actions required today. Morey concluded that by prioritizing ambition and long-term strategies over complacency, WA can continue to thrive in its resource sector for generations to come.
The path forward for WA’s resources sector is clear: with collaboration, innovation, and a commitment to addressing current challenges, the state is poised for a remarkable future.
