Mining and resources have always been the backbone of Western Australia’s economy. Western Australia and the national economy continue to benefit from the growth in the resources sector. Confidence has returned to the market on the back of solid price rises in iron ore. As of October 2012, committed capital expenditure on major projects in Western Australia increased by 4.1% to A$141 billion from the $135 billion at the end of April 2012. West Australian resources companies total market capitalization at the end of November 2012 stood at A$86 billion, an increase of 2.1% from the end of August 2012. This growth has strengthened post-election, with strong results posted by majors BHP Billiton, Fortescue Metals Group and Rio Tinto. This looks to translate into strong, stable growth in the coming period.

BIS Shrapnel, a market forecasting service, has forecast mineral production in Australia to increase by 41% over the next five years: a far cry from the dim-results predicted in the first half of 2013. However, Western Australia’s mining industry must now solve a series of structural problems, the answers to which will define the face of the industry moving forward. Western Australia has grown fat off its “luck,” but the rise of the Pilbara and the country’s oil and gas industry have come at a cost. Mines and their ore bodies have been spared: their miners, spoiled. Mine productivity has hit a historic low as wage rates have hit a historic high. Compounded with a downturn in global commodity prices, this dynamic has led some to question the economics of West Australian mining. Yet West Australian mining remains viable. From the beating which global commodity markets have inflicted on the industry, a better industry is now emerging: innovative and lean.