Posted in | Gold | Copper | Iron Ore

Miners Bring Economic Boom to Western Australia

Western Australian finances have gone from a deficit to an opening surplus of $1.1 billion piggybacking on the higher royalties for iron ore this year. The strong earnings from the mining sector have shown the surplus for the first six months of the 2010-11 financial year.

The jump is considerable when you consider that there was a $259 million deficit in the 2009- 2010 financial year. The revenue in this period went up to $12.3 billion which is higher by $2 billion in the corresponding period in the previous financial year.

The Western Australia Treasurer Christian Porter released figures that showed that the major miners had contributed greatly to the surplus. A one off $350 million payment from BHP Billiton and Rio Tinto also contributed to the state of good finances. This came from the state government’s successful negotiation to remove the royalty concession on iron ore production.

Another contributor was the one off back payment of $55 million from the Robe River Mesa J Mine. This came after the resolution of a long standing issue regarding the applicable royalty rate for the mine between the mine officials and the state government.

The Treasurer added that the retail and property sectors were flat and there were low stamp duty and GST revenues. Net debt also rose to $450 million due to planned investment in major infrastructure.

Joel Scanlon

Written by

Joel Scanlon

Joel, originally from the UK, emigrated to Australia in 1995 and spent 5 years working in the mining industry as an exploration Geo-technician where he developed skills in GIS Mapping and CAD. Joel also spent a year working underground in a gold/copper mine. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm before starting a successful business providing graphic and web design services to local businesses on the eastern seaboard of Australia. Joel is skilled in project management, web programming, design, animation, database and networking, software and editing. Joel has been with AZoNetwork since its inception in 2000.

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