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CME Chief Executive Officer Rebecca Tomkinson said the WA Government’s $3.7 billion forecasted operating surplus was largely driven by royalties from the resources sector – underpinned by the strong performance of iron ore bringing in an additional $3.2 billion in royalties than budgeted – but warned the good times wouldn’t last if industry continued to be mired in regulatory inefficiency.

“WA’s economy is the healthiest of any state and territory in Australia and the resources sector is the blood in the veins that keeps the State Budget in such a robust condition,” Ms Tomkinson said.

“These latest figures soar above the May Budget projections, which is a great Christmas gift for the people of Western Australia. But let’s be clear: if the Government binds Santa and the elves in bureaucratic tape, the wrapping and bow will come off those financial statements very quickly.

“There are currently $12.6 billion worth of projects in progress in WA, and another $118.4 billion in early stage development looking to advance over the next couple of years. If projects in the pipeline stall for entirely preventable reasons such as regulatory inefficiency, then naturally there’s a knock-on impact.

“Ongoing investment in our police, health system, housing, transport and renewables is at risk unless the government works fast to put its initiatives into action. An effective regulatory approvals system and policy framework should be at the top of the WA Government’s to do list.

“As the Treasurer said, an outstanding budget like this one means the government can invest in what matters to Western Australians. With cost-of-living pressures and economic uncertainty weighing heavily, now is the time to maintain job security and the state’s economic strength.

“The energy transition is going to require more mining activity to deliver the critical minerals and technology required to achieve the world’s decarbonisation ambitions. This is a generational pivot point in how we approach our energy future.”

Ms Tomkinson said CME had previously welcomed the Government’s announcement of overhauls to environmental approvals, and funding announcements including $708 million for transmission upgrades in the South West Interconnected System and $160 million in lease incentives to attract proponents to strategic industrial areas. She said CME would continue to advocate to Government for the recommendations in its WA Pre-Budget Submission to be considered and implemented.

“The resources sector is a part of WA’s DNA and has long been part of our community as a significant contributor to our local economy and jobs,” she said.

“Chances are you or your neighbour, family member, friend or person standing behind you in the grocery line are directly or indirectly employed by the resources industry – and we all benefit from the broader economic contribution of the sector.”

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CME Chief Executive Rebecca Tomkinson said the injection of $60 million to the IAF and $74 million to the WA Government’s sectoral emissions reduction strategies were positive steps towards industry, government, the community and businesses working collaboratively on mapping out a net zero future.  

However, she said in the lead up to the WA Energy Transition Summit, CME was again calling for action from the WA Government to lay the groundwork and outline a clear plan for this transition. 

“I’ve said before that the path to net zero runs through WA. I’d go so far as to say there is no net zero without WA,” Ms Tomkinson said.

“We have the resources, critical minerals and rare earths to meet global demand at scale, but governments must work with industry to ensure the pathways are clear for project development.

“The $60 million IAF New Energies Industries round is a welcome step to encourage investment in projects such as critical mineral and rare earth processing, renewable energy technologies and emissions capture. However, further investment by the WA Government will be required, most critically to provide certainty of access to low emissions, affordable and reliable energy but also in unlocking further project ready land. 

“If the WA Government can attract investment in the sorts of projects that will see us meet global demand – and at the same time remove red tape, create a more efficient approvals process and clarify regulatory framework for the industry – WA will be well positioned to leverage the incredible opportunities presented by the energy transition.”

Ms Tomkinson said the addition of $74 million into the WA Government’s sectoral emissions reduction strategies would hopefully support emissions reduction pathways across the WA economy.  

“The industry – and the community in general – wants to see the map. They want to know how the WA Government will navigate the energy transition and what we all need to do to achieve 2030 and 2050 net zero targets,” she said.

Media contact: Natasha Mutch
0435 383 382
n.mutch@cmewa.com

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The Chamber of Minerals and Energy WA (CME) Chief Executive Rebecca Tomkinson told the Economics and Industry Standing Committee’s Inquiry into the WA Domestic Gas Policy that the WA Government’s 15 per cent domestic gas reservation amount had worked well for the state since it formally came into effect in 2006.  

Ms Tomkinson said CME’s submission called for no changes to this well-established amount under the DomGas initiative. However she noted shifting global demands for natural resources, geopolitical tensions, climate targets and technological advancements had signalled a need to clarify aspects of WA’s gas policy going forward. 

 “Renewable technology, energy infrastructure and a secure, stable and reliable electricity supply are all essential to the world’s energy transition – the raw materials for which all come from WA,” Ms Tomkinson said.  

“WA needs a low emission, reliable and cost-competitive energy system by 2030 and gas has a role to play in our energy transition, there’s no question about that. 

“The existing 15 per cent domestic gas reservation amount is expected to continue to service WA well, but the application of the current policy is open to differences in interpretation between gas users and gas producers. 

“What we need now in order to progress towards our national emissions targets is a policy framework from the WA Government that articulates secure delivery of gas into the medium term, transparency of supply, and a workable policy.  

“Stable policy settings are essential for investment certainty, market efficacy and the results expected by energy consumers and producers,” she said. 

Ms Tomkinson said inefficient government approvals processes for gas developments would impact investment decisions and make it more challenging to bring sufficient supply to the market.  

She welcomed recent federal amendments that would enable some sectors to diversify emission reduction pathways and explore technologies such as carbon capture and storage, which would provide some certainty in reaching net zero targets. 

“This is where the WA Government can support efforts to help bring adequate supply to market by urgently addressing lengthy and duplicative approvals processes,” she said. 

“With several state and federal strategies converging in this space, there’s an opportunity for governments to support education about the role of gas in a stable and reliable energy transition across the board.” 

The value of royalties, North West Shelf grants and lease rentals received by the State Government from the sector totalled $12.6 billion in 2022-23, highlighting the sector’s significant contribution to local, state and Australian economies. 

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CME Chief Executive Rebecca Tomkinson said WA’s continued status as an economic powerhouse for the nation was testament to the resources sector’s strength in providing what was required to advance a global energy transition.

“We can clearly see from the data that global trends towards electric vehicles, sustainable energy production and storage, and sustainability have made an impact on demand for resources, and the sector is responding,” she said.

“WA’s iron ore continues to be highly sought after, with record production resulting in $125 billion in sales.

“For the first time in eight years, lithium sits above gold, ranking second as our most valuable mineral with a record $21 billion in sales.

“Nickel sales also remained around their previous high recorded in 2022 at $5.7 billion, along with alumina, mineral sands, manganese and cobalt, gold and salt. All these are minerals are at the centre of the low carbon economy.

“Renewable energy production and the energy transition will be driven by precisely the sorts of critical minerals that WA produces.”

Ms Tomkinson said that as the world raced towards a low-carbon economy, there would inevitably be an associated increase in the consumption of the raw materials that the WA resources sector was able to extract, process and supply.

“To produce wind turbines for energy production, for example, you need access to bauxite,  cobalt, copper, iron ore, zinc and silica,” she said.

“Electric vehicles mean a reduced reliance on fossil fuels but it takes lithium, nickel and cobalt to produce EV batteries. Similarly, gallium is used in photovoltaics and indium is an important component for making touch screens, flatscreen TVs and solar panels.”

Ms Tomkinson said that while it was pleasing to see exploration expenditure remain around the previous high recorded in 2022, more needed to be done to attract increasingly mobile global capital.

She warned that urgent action was required to address lengthy and duplicative approvals processes to address a reduction in the investment pipeline, with the value of projects under construction or committed dropping by approximately $5 billion relative to March 2023.

“Western Australia is in a unique position. We have the critical minerals and resources the world is demanding, plus the capacity to ensure the recovery, processing and supply of those minerals is sustainable and ethical,” she said.

“However, as outlined in our recent 2024-25 State Pre-Budget Submission, it is vital we get the policy and fiscal settings right or we could easily see continued deceleration of our project development pipeline. Competitive costs, efficient and non-duplicative regulatory approvals processes, project ready land and access to low emission, reliable and cost-competitive energy will be critical.”

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CME advocated for this outcome in its submission to the Senate Education and Employment Committee’s Inquiry into the Bill in September, and in its appearance at a public hearing of the Inquiry in early October.

CME Chief Executive Rebecca Tomkinson said passing the important and uncontroversial parts of the Bill was common sense and it now remained for industry and government to consult on the remaining aspects of the Bill.

“CME’s position continues to be that the remaining aspects of the Bill need to be withdrawn and substantially rewritten following genuine consultation,” she said.

“State and federal governments are keen for Australia to seize the opportunity to provide the minerals and energy our country and the world need to decarbonise, and yet some aspects of regulation and policy seem at odds with that objective.

“The current pace and quantity of federal reforms across areas including climate, environment, tax and industrial relations is substantial, and without genuine consultation and careful implementation, risks investment and jobs in Australia.”

Ms Tomkinson said regulatory uncertainty and inefficiency creates investment risk, which could hinder Western Australia and Australia’s ability to take advantage of significant opportunities to continue to deliver the resources required for a green transition. 

“Western Australia and our nation more broadly is poised to play a key role in the transition, with significant opportunities across the critical mineral value chain.  A stable regulatory environment is critical to making sure we don’t miss out on the next wave of investment,” she said.

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The Chamber of Minerals and Energy of WA’s (CME) Chief Executive Rebecca Tomkinson said the timely delivery of a low emissions, reliable and cost-competitive energy system was required to decarbonise industry’s existing operations and deliver globally competitive green industries in WA, including critical minerals and value-adding. 

“There is no net zero without the WA resources sector,” she said. 

“While we welcome the WA Government’s direction for transition of the state’s main electricity grids, and their constructive engagement with the industry, we urgently need the WA Government to move from admirable aspirations to tangible actions.” 

The statements were made with the release of CME’s 2024-25 Pre-Budget Submission (PBS) today, which also calls for actions to address skills shortages and investment in regional communities, including through identification and prioritisation of investments in essential regional and social infrastructure such as housing.  

CME also renews its earlier call for the WA Government to introduce targeted measures to realise the state’s critical and battery minerals industry potential. A targeted initiative such as a ‘value add’ rebate scheme would enhance the international competitiveness for minerals and minerals processing vital for the transition to net zero. 

The PBS highlights that the complex challenges for industry are compounded by inefficient, duplicative and delayed assessment and approvals processes. Action is also needed to unlock additional project ready land by activating our strategic industrial areas and increasing port capacity. 

Ms Tomkinson said delays in addressing these bottlenecks threatened the ability of the WA resources sector to continue its strong contribution to the state’s economy, jobs and family incomes, local businesses, communities and WA Government revenues – of which the sector contributes almost one-third. 

She said the WA resources sector was well positioned to underpin the state’s economic and community development and prosperity for the next 50 plus years, however significant obstacles stood in the way of industry realising this potential.  

“The outlook for the resources sector is strong, however it faces intense global competition for investment capital, increasing geopolitical tensions, rising costs and persistent skilled labour shortages,” she said. 

“Regulatory uncertainty, inefficient assessment and approvals processes, and a lack of clarity around access to low emissions, reliable and cost-competitive energy, are diminishing WA’s competitiveness for global investment dollars. 

“The WA Government’s efforts to improve the efficiency of approvals processes needs to be reinvigorated, and resourcing of approvals processes should be prioritised and funded to release the handbrake on sustainable development. 

“It is also crucial that the WA Government works to ensure the Australian Government does not add to inefficiency and delays by introducing further duplication and inconsistency. 

“Industry looks forward to working collaboratively with the WA Government and the community to address these issues and realise the benefits for Western Australians for generations to come.”

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