Mining in Western Australia
Encyclopedia
Mining in Western Australia, together with the petroleum industry in the state, accounted
for almost 90 per cent of the State’s income from total merchandise exports in 2008-09. The state of Western Australia
Western Australia
Western Australia is a state of Australia, occupying the entire western third of the Australian continent. It is bounded by the Indian Ocean to the north and west, the Great Australian Bight and Indian Ocean to the south, the Northern Territory to the north-east and South Australia to the south-east...

 hosted, in 2008-09, 513 commercial mineral projects and 893 mining operations, as well as 64 operating oil and gas fields.

Western Australia’s mineral and petroleum industry, in 2009, had a value of A$61 billion, of which 48.2 billion were created by the mining industry. While the overall value of the industry suffered a setback in 2009, losing 17 percent in value compare to 2008, the mineral and petroleum industry nevertheless posted healthy gains over the last decade, growing, on average, annually by 15 percent. The cause of the loss in 2009 was attributed to the Global financial crisis, which saw the price for Iron ore, the most important commodity in the state, drop by 37 percent. On the other hand, Gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...

 posted a substantial growth in value, with the price increasing by 12 percent.

Iron ore was, in 2009, the most important commodity in Western Australia, accounting for 46 percent of sales in the states mineral and petroleum industry. The petroleum sector followed in second place with 28 percent of the overall value, consisting of oil and gas. The fourth-most important commodity in the state was Gold, which was also the only one in 2009 to experience a gain in prices, when every other one of the major commodities declined. Alumina and Nickel
Nickel
Nickel is a chemical element with the chemical symbol Ni and atomic number 28. It is a silvery-white lustrous metal with a slight golden tinge. Nickel belongs to the transition metals and is hard and ductile...

 followed in the order of importance, still each achieving a value in excess of A$3 billion. Of the other majors, the Base Metals
Base metal
In chemistry, the term base metal is used informally to refer to a metal that oxidizes or corrodes relatively easily, and reacts variably with diluted hydrochloric acid to form hydrogen. Examples include iron, nickel, lead and zinc...

, Copper
Copper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...

, Lead
Lead
Lead is a main-group element in the carbon group with the symbol Pb and atomic number 82. Lead is a soft, malleable poor metal. It is also counted as one of the heavy metals. Metallic lead has a bluish-white color after being freshly cut, but it soon tarnishes to a dull grayish color when exposed...

 and Zinc
Zinc
Zinc , or spelter , is a metallic chemical element; it has the symbol Zn and atomic number 30. It is the first element in group 12 of the periodic table. Zinc is, in some respects, chemically similar to magnesium, because its ion is of similar size and its only common oxidation state is +2...

, as well as Diamonds, Cobalt
Cobalt
Cobalt is a chemical element with symbol Co and atomic number 27. It is found naturally only in chemically combined form. The free element, produced by reductive smelting, is a hard, lustrous, silver-gray metal....

, Coal
Coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...

, Mineral Sands
Heavy mineral sands ore deposits
Heavy mineral sands are a class of ore deposit which is an important source of zirconium, titanium, thorium, tungsten, rare earth elements, the industrial minerals diamond, sapphire, garnet, and occasionally precious metals or gemstones....

 and Salt
Salt
In chemistry, salts are ionic compounds that result from the neutralization reaction of an acid and a base. They are composed of cations and anions so that the product is electrically neutral...

 all stayed below the A$1 billion mark in value in 2009.

Employment in the Western Australian mining and petroleum industry has sharply increased, having more than doubled in the last 20 years, from just over 30,000 to over 75,000 in 2009.

The industry's regulating authority in Western Australia is the Department of Mines and Petroleum
Department of Mines and Petroleum
The Department of Mines and Petroleum is a department of the Government of Western Australia. The department was formed on 1 January 2009, out of the former Department of Industry and Resources and Department of Consumer and Employment Protection, which were split into three new departments, the...

 (DMP), which replaced the previously existing Department of Industry and Resources (DOIR) on 1 January 2009. The department, among other things, produces the annual Western Australian Mineral and Petroleum Statistic Digest and operates the MINDEX website, which is aimed at listing all current and former mining operations in the state.

Iron ore

Iron ore mining in Western Australia, in the financial year 2008-09, accounted for 47 percent of the total value of the states resources, with a value of A$
Australian dollar
The Australian dollar is the currency of the Commonwealth of Australia, including Christmas Island, Cocos Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu...

33.56 billion. The overall value of the mineral and petroleum industry in Western Australia was A$71.3 billion in 2008-09, a 19 percent increase compare to the previous financial year.
Iron ore in Western Australia experienced unprecedented growth in 2008-09, with the states output growing by 8.5 percent, to 316 million tonnes of ore. In terms of value, the industry grew by 53 percent. The bulk of Western Australian ore went to China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...

, which imported 64 percent of the 2008-09 production, followed by Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

 with 21 percent. The boom of the last decade was however somewhat slowed in 2009, when the value of the industry fell by 12 percent compare to the previous calendar year, and this despite record production of 342 million tonnes of ore.

In the calendar year 2009, the Western Australian Government
Government of Western Australia
The formation of the Government of Western Australia is prescribed in its Constitution, which dates from 1890, although it has been amended many times since then...

 received over A$1.7 billion in royalties from the iron ore mining industry in the state.

Iron ore mining in Western Australia is predominantly, but not exclusively, carried out in the Pilbara region, which produced ore in value of A$26.82 billion in 2009, out of an overall iron ore production value of A$28.1 billion for the state.

Petroleum

Petroleum, like mining, falls under the jurisdiction of the Department of Mines and Petroleum, but is otherwise not directly related to mining. Crude Oil and Condensate
Natural gas condensate
Natural-gas condensate is a low-density mixture of hydrocarbon liquids that are present as gaseous components in the raw natural gas produced from many natural gas fields....

 reached a value of A$8.7 billion in 2009, while LNG
Liquefied natural gas
Liquefied natural gas or LNG is natural gas that has been converted temporarily to liquid form for ease of storage or transport....

 achieved a value of A$6.3 billion in 2009.

Gold

The history of gold mining in Western Australia dates back to the 1880s but took on some larger dimensions in the 1890s, after gold discoveries
Western Australian gold rush
In the latter part of the nineteenth century, discoveries of gold at a number of locations in Western Australia caused large influxes of prospectors from overseas and interstate, and classic gold rushes. Significant finds included:...

 at Coolgardie
Coolgardie, Western Australia
Coolgardie is a small town in the Australian state of Western Australia, east of the state capital, Perth. It has a population of approximately 800 people....

 in 1892 and Kalgoorlie
Kalgoorlie, Western Australia
Kalgoorlie, known as Kalgoorlie-Boulder, is a town in the Goldfields-Esperance region of Western Australia, and is located east-northeast of state capital Perth at the end of the Great Eastern Highway...

 in 1893. It reached an early peak in 1903, experienced a golden era in the 1930s and a revival in the mid-1980s. In between, the industry declined a number of times, like during the two world wars, experiencing an absolute low point in 1976.

In 2009, Gold delivered a stand-our performance, recording a record value of A$5.7 billion, a 29 percent increase in comparison to the previous calendar year. Gold production in the state increased by 9 percent, reaching 4.6 million ounces in 2009.

Alumina

The Darling Scarp
Darling Scarp
The Darling Scarp, also referred to as the Darling Range or Darling Ranges, is a low escarpment running north-south to the east of the Swan Coastal Plain and Perth, Western Australia...

 contains considerable deposits of bauxite, and these have been mined by Alcoa
Alcoa
Alcoa Inc. is the world's third largest producer of aluminum, behind Rio Tinto Alcan and Rusal. From its operational headquarters in Pittsburgh, Pennsylvania, Alcoa conducts operations in 31 countries...

 and Worsley Alumina
BHP Billiton
BHP Billiton is a global mining, oil and gas company headquartered in Melbourne, Australia and with a major management office in London, United Kingdom...

 for the production of alumina.

Alcoa's first bauxite mine at Jarrahdale
Jarrahdale, Western Australia
Jarrahdale is a small historic town located 50 km south-east of Perth, Western Australia in the Darling Range. Jarrahdale is a descriptive name, derived from its situation in some of Western Australia's best Jarrah forest...

 was opened in 1963 to service the Kwinana
Kwinana, Western Australia
The Town of Kwinana is a Local Government Area of Western Australia. It covers an area of approximately 118 square kilometres in metropolitan Perth, and lies about 38 km south of Perth's central business district, via the Kwinana Freeway...

 alumina refinery. 168 million tonnes of bauxite was mined from Jarrahdale until its closure in 1998. The Huntly mine was established in the early 1970s to supply bauxite for both the Kwinana and Pinjarra
Pinjarra, Western Australia
Pinjarra is a town in the Peel region of Western Australia along the South Western Highway, from the state capital, Perth and south-east of the coastal city of Mandurah. Its local government area is the Shire of Murray. At the 2006 census, Pinjarra had a population of 3,279.Pinjarra is an area...

 refineries. It is currently the biggest bauxite mine in the world. The Wagerup
Wagerup, Western Australia
Wagerup is a town located in the Peel region of Western Australia just off the South Western Highway, between Waroona and Harvey.-History:...

 refinery is serviced by the Willowdale bauxite mine, established in 1984.

Worsley Alumina constructed a mine site and refinery in the early 1980s. The mine site is located near Boddington
Boddington, Western Australia
Boddington is a town and shire in the Peel region of Western Australia, located south-east of Perth. The town sits on the road from Pinjarra to Williams on the Hotham River...

 and the bauxite is transported by a 51 km conveyor belt to the refinery at Worsley
Worsley, Western Australia
Worsley is a town in Western Australia located in the South West region near the town of Collie. The town is part of the Shire of Collie.The town's name comes from the Worsley river, a tributary of the Collie river, that is located nearby. The origin of the name is thought to be from the Worsley...

. Following a A$1 billion expansion in 2000, Worsley now export 3.1 million tonnes of alumina.

In 2009, Western Australia produced 12.4 million tonnes of Alumina, at a value of A$3.6 billion, a reduction in value by 27 percent.

Nickel

The Western Australian Nickel industry suffered from falling international prices in 2009. While Nickel production has been resonably steady in the past years, the value of the industry has decreased from a peak A$6.9 billion in 2007 to under 3.3 billion in 2009. In the same time, the number of employees has fallen from a peak 13,307 in 2008 to 7,561 in 2009. A large number of Nickel mines in the state were placed in care and maintenance at the end of 2008 because of falling international prices. The industry was however expected to make a recovery in 2010.

The discovery in Kambalda, Western Australia
Kambalda, Western Australia
Kambalda is a small mining town about 60 kilometres from the mining city of Kalgoorlie in Western Australia, within the Goldfields. It is split into two townsites 4 kilometres apart, Kambalda East and Kambalda West; and is located on the western edge of a giant salt lake, Lake Lefroy...

 in 1966, Mount Windarra in 1969 and Agnew in 1971 coinciding with rising world nickel prices and a prolonged strike at a major nickel in Canada, meant that the discoveries were rapidly developed, bringing about a "nickel boom" between 1967 and 1971.

Base metals

The value of the Base Metal production in the stte declined by 12 percent in 2009.

The largest Base Metal producing mine in Western Australia is the Golden Grove Mine
Golden Grove Mine
The Golden Grove Mine is a copper, lead, silver, zinc and gold mine located 52 km south-south-east of Yalgoo, Western Australia.It is operated by Minerals and Metals Group, which was formed after its parent company, China Minmetals, bought the mine from OZ Minerals in June 2009...

.

Copper

Western Australian output of copper increased by ten percent in 2009, having grown from just over 34,000 tonnes per annum in 2000 to 142,490 tonnes by 2009, with a brief dip in production in 2004 due to the closure of the Lennard Shelf mine. In 2009 however, world Copper prices fell by 26 percent, causing the industry in the state to lose 11 percent of its value.

Lead

Lead mining in Western Australia experienced a boom in 2009, almost doubeling its production. This was caused by the reopening of the Magellan mine. Overall, the states Lead production in the last ten years has been very varied, reaching a peak of 91,380 tonnes in 2001, falling to 1,170 tonnes in 2004 because of the closure of the Lennard Shelf mine, before reaching another peak in 2006 and a low in 2008.

Zinc

Zinc experienced a drop in production and prices in 2009, output in Western Australia falling by 33 percent and the value of the industry decreasing by 35 percent.

Because of the nature of Zinc and Lead, which are often found together, Zinc has experienced the same ups and downs in production as Lead in the last decade.

Coal

Coal in Western Australia is currently, as of 2009, mined at only one location, at Collie
Collie, Western Australia
-External links:*...

, where two mines are operating. Ninety percent of all coal mined at Collie is used in power stations, the remainder in the Mineral Sands production. While a small amount of Western Australian coal has been exported to India in China in recent years, the majority goes to the coal fired power stations, mainly located in the Collie area as well.

Coal production in the state has been quite steady in the past decade, with the 2009 production of 6.56 million tonnes being only three percent less than in 2008. Like production, the value of the Western Australian coal industry has remained resonably constant, too, with a slight increase to A$308 million in 2009.

Diamonds

The bulk of diamonds produced in Western Australia originate from the Argyle diamond mine
Argyle diamond mine
The Argyle Diamond Mine is a diamond mine located in the East Kimberley region in the remote north of Western Australia. Argyle is the largest diamond producer in the world by volume, although due to the low proportion of gem-quality diamonds, is not the leader by value. It is the only known...

, located in the far north of the state. The mine produces around 20 percent of the global diamond output and commenced mining in 1985. The mines most famous product is its pink diamonds, of which it produces around 90 percent of the worlds supply, which is, however, only one percent of the mines overall production. Apart from Argyle, there is only one other operating diamond mine in the state, the Ellendale mine, located 100 km east of Derby
Derby, Western Australia
Derby is a town in the Kimberley region of Western Australia. At the 2006 census, Derby had a population of 3,093. Along with Broome and Kununurra, it is one of only three towns in the Kimberley to have a population over 2,000...

, which opened in 2002. Ellendale produces the rare yellow diamonds.

In 2009, sale volumes for diamonds fell by 44 percent while the value of the industry in the state decreased by 53 percent in comparison to 2008.

Salt

Eighty percent of all salt produced in Australia comes from Western Australia. Of the states production, 77 percent, in turn, originate from Dampier Salt Limiteds operations at Dampier
Dampier, Western Australia
Dampier is a major industrial port in the north-west of Western Australia. The Dampier Port is part of the Dampier Archipelago. The port services petrochemical, salt, iron ore and natural gas export industries. Rio Tinto exports large volumes of iron ore through the port, and in September 2010...

, Port Hedland
Port Hedland, Western Australia
Port Hedland is the highest tonnage port in Australia and largest town in the Pilbara region of Western Australia, with a population of approximately 14,000 ....

 and Lake MacLeod
Lake Macleod
Lake Macleod is the westernmost lake in Australia. It lies north of the small coastal city of Carnarvon, Western Australia, estimated population 7,200.-History:...

 in the Pilbara. Other mining locations in the state include Onslow
Onslow, Western Australia
Onslow is a coastal town in the Pilbara region of Western Australia, north of Perth. It currently has a population of around 573 people and is in the Shire of Ashburton Local Government Area....

, Koolyanobbing
Koolyanobbing, Western Australia
Koolyanobbing is located 54 km NNE of the town of Southern Cross, Western Australia.Iron ore is mined here by a subsidiary of Cliffs Natural Resources of Cleveland, Ohio. Ore is railed to port at Esperance for export...

 and Esperance
Esperance, Western Australia
Esperance is a large town in the Goldfields-Esperance region of Western Australia, located on the Southern Ocean coastline approximately east-southeast of the state capital, Perth. The shire of Esperance is home to 9,536 people as of the 2006 census, its major industries are tourism, agriculture,...

.

While the overall salt production in Western Australia dropped by 19 percent in 2009, to 9.5 million tonnes, the value of the industry increased dramatically, by 59 percent, to A$432 million.

Asbestos

Blue asbestos
Riebeckite
Riebeckite is a sodium-rich member of the amphibole group of silicate minerals, chemical formula [][Na2][32][2|Si8O22]. It forms a series with magnesioriebeckite. It crystallizes in the monoclinic system, usually as long prismatic crystals showing a diamond-shaped cross section, but also in...

 was discovered at Wittenoom Gorge
Wittenoom, Western Australia
Wittenoom is a ghost town located 1,106 kilometres north-northeast of Perth in the Hamersley Range in the Pilbara region of Western Australia. It is the site of Australia's greatest industrial disaster....

 in the 1930s by Lang Hancock
Lang Hancock
Langley Frederick George "Lang" Hancock was an Australian iron ore magnate from Western Australia who maintained a high profile in the competing spheres of business and politics...

 and claimed as a mining tenement in 1934. The mine supplied much of the world's demand for asbestos until it closed in 1966 due to health concerns for its workers.

The production or use of asbestos is now banned in Australia.

Uranium

The Western Australian ban on uranium mining was lifted in 2008, after the 2008 state elections
Western Australian state election, 2008
A general election was held in the state of Western Australia on Saturday 6 September 2008 to elect 59 members to the Legislative Assembly and 36 members to the Legislative Council...

, which saw the Australian Labor Party
Australian Labor Party
The Australian Labor Party is an Australian political party. It has been the governing party of the Commonwealth of Australia since the 2007 federal election. Julia Gillard is the party's federal parliamentary leader and Prime Minister of Australia...

 replaced in government by the Liberal Party of Australia
Liberal Party of Australia
The Liberal Party of Australia is an Australian political party.Founded a year after the 1943 federal election to replace the United Australia Party, the centre-right Liberal Party typically competes with the centre-left Australian Labor Party for political office...

. No uranium mining currently takes place in the state and developing projects are not scheduled to enter their mining phase before 2012-13.

Three projects are in the approval process, the Lake Maitland uranium project, which has a proposed start-of-production date of 2012, the Lake Way uranium project, to begin in 2013, and BHP Billiton
BHP Billiton
BHP Billiton is a global mining, oil and gas company headquartered in Melbourne, Australia and with a major management office in London, United Kingdom...

's Yeelirrie uranium project
Yeelirrie uranium project
The Yeelirrie uranium project is a proposed uranium mining project, located approximately 70 km south west of Wiluna, in the Mid West region of Western Australia....

, scheduled for production by 2014. All three are located within 100 km of Wiluna
Wiluna, Western Australia
Wiluna is a complex town in the Mid West region of Western Australia. It is situated on the edge of the Western Desert at the gateway to the Canning Stock Route and Gunbarrel Highway. It is the service centre of the local area for the local Aboriginal people, the pastoral industry, mining, and...

.

Safety

In the past decade, from 2001 to 2010, 42 employees have lost their live in the state's mining industry. Of those, gold and iron ore have been the most dangerous, with 14 fatalities each, followed by nickel, with nine. Of the 42 fatalities, 29 have occurred at the surface and 13 in underground mining.

Since 1943, the year the Department of Mines records date back to, to 2010, 657 work-related fatalities have occurred in the mining industry in the state.

Production

Commodities measured in million tonnes per annum:
Commodity 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Iron ore 158.87 162.25 171.77 194.75 215.85 244.64 250.40 264.45 305.72 341.64
Alumina 10.0 10.75 11.0 11.23 10.99 11.35 11.87 12.17 12.25 12.42
Salt 7.71 8.58 9.17 9.75 10.4 11.48 10.72 10.39 11.49 9.55
Coal 6.2 6.2 6.26 6.03 6.31 6.41 7.25 5.81 6.73 6.56


Commodities measured in tonnes per annum:
Commodity 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Nickel 153,510 181,170 183,000 190,210 174,700 191,710 175,180 161,010 187,790 171,970
Copper 34,040 50,240 64,290 58,780 42,680 83,880 99,960 119,410 129,530 142,490
Zinc 257,720 210,840 218,800 174,550 51,780 63,610 138,840 180,730 156,010 104,690
Lead 73,080 91,380 70,400 56,490 1,170 30,270 74,850 42,020 13,780 26,700
Cobalt 3,590 4,260 4,700 5,170 4,550 4,590 5,130 4,730 4,780 4,629


Commodities measured in million carats per annum:
Commodity 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Diamonds 42.3 21.68 34.37 35.48 24.23 34.31 17.07 23.54 21.24 11.9


Commodities measured in kilogram per annum:
Commodity 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Gold 199,500 192,200 188,860 187,500 164,420 169,830 163,840 152,690 131,824 142,519

Value

Commodities at an annual production value of A$ billion:
Commodity 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Iron ore 4.365 5.245 5.064 5.061 6.173 11.308 14.751 16.165 31.896 28.085
Gold 3.08 3.24 3.46 3.37 2.94 3.15 4.24 4.07 4.39 5.66
Alumina 3.188 3.767 3.339 3.14 3.179 3.656 4.767 4.704 4.901 3.594
Nickel 2.243 2.075 2.243 2.68 3.261 3.484 5.844 6.958 4.059 3.281


Commodities at an annual production value of A$ million:
Commodity 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Copper 82.61 120.71 145.49 145.09 160.94 434.71 917.78 1,018.75 1,041.6 923.58
Mineral Sands 862.93 909.22 855.87 760.75 749.08 880.37 883.67 780.28 797.89 620.61
Salt 197.32 249.24 250.53 197.01 185.08 213.78 241.64 229.6 276.72 432.44
Coal 257.84 258.21 266.4 266.41 281.91 283.26 317.9 265.15 305.5 308.16
Diamonds 713.68 499.53 650.34 661.86 414.81 740.1 446.9 555.0 490.71 230.0
Zinc 290.11 208.72 173.06 139.73 57.78 118.91 607.12 695.54 329.13 213.47
Cobalt 157.66 146.27 118.95 145.04 262.18 166.95 220.43 343.08 378.71 178.9
Lead 25.76 44.90 32.69 24.32 0.31 41.17 130.61 115.57 32.61 44.33

Employees

Employment figures for the major commodities and overall figures for the complete mining industry:
Commodity 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Iron ore 8,604 9,103 9,289 11,184 12,585 13,727 16,203 18,387 23,185 26,051
Gold 10,879 11,938 12,653 12,801 13,398 12,121 12,314 13,733 14,459 16,686
Alumina 6,706 6,569 6,633 7,015 7,613 9,711 8,967 8,559 8,201 8,212
Nickel 5,038 5,160 4,699 5,714 6,704 9,423 10,583 12,736 13,307 7,561
Mineral Sands 2,243 2,338 2,170 2,224 2,435 2,789 2,914 2,840 2,670 1,934
Diamonds 940 1,009 1,101 1,094 1,397 1,479 1,614 1,863 2,218 1,602
Base Metals 1,331 1,301 1,295 1,100 888 670 912 2,241 2,242 1,456
Salt 698 699 648 658 679 853 838 865 867 778
Coal 709 677 649 641 651 716 771 808 897 725
Overall 39,028 40,870 41,288 44,392 48,385 53,598 57,053 64,608 71,225 70,063

Official reports


External links

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