Statistics Digest 2006-07

WESTERN AUSTRALIAN MINERAL AND PETROLEUM STATISTICS DIGEST 2006–07 This publication is available on our website www.doir.wa.gov.au Head Office: Mineral House 100 Plain Street East Perth WA 6004 Telephone: +61 8 9222 3333 Facsimile: +61 8 9222 3568 Email: [email protected] For specific enquiries, please email: [email protected] DoIRAUG07_1259 Disclaimer Information provided in this Digest is made available without charge, as a public service, in good faith. The information provided is derived from sources believed to be reliable and accurate at the time of publication. However, use of the information in the Digest is at your own risk. The Digest is provided solely on the basis that users will be responsible for making their own assessment of the information provided therein and users are advised to verify all representations, statements and information for decisions that concern the conduct of business that involves monetary or operational consequences. Each user waives and releases the Department of Industry and Resources and the State of Western Australia and its servants to the full extent permitted by law from all and any claims relating to the use of the material in the Digest. In no event shall the Department of Industry and Resources or the State of Western Australia be liable for any incidental or consequential damages arising from any use or reliance on any material in the Digest. Copyright © 2007 Copyright in this document is reserved to the State of Western Australia. Reproduction except in accordance with copyright law is prohibited. CONTENTS FOREWORD 1 1. EXPLORATION AND INVESTMENT 2 1.1 PETROLEUM EXPLORATION 2 1.2 MINERAL EXPLORATION 2 1.3 INVESTMENT 3 2. MINERALS AND PETROLEUM INDUSTRY 2006–07 REVIEW 4 2.1 OVERVIEW 4 2.2 PETROLEUM 10 2.3 IRON ORE 16 2.4 NICKEL 23 2.5 ALUMINA 26 2.6 GOLD 28 2.7 BASE METALS 32 2.8 MINERAL SANDS 33 2.9 DIAMONDS 35 2.10 OTHER MINERALS 36 3. ROYALTIES 40 TABles 1. ROYALTY RECEIPTS 41 2. QUANTITY AND VALUE OF MINERALS AND PETROLEUM 42 3. VALUE OF MINERALS AND PETROLEUM BY REGION BY LGA 44 4. VALUE OF MINERALS AND PETROLEUM BY REGION BY COMMODITY 45 5. QUANTITY AND VALUE OF SELECTED MAJOR COMMODITIES 46 6. PRINCIPAL MINERAL AND PETROLEUM PRODUCERS 48 AbbREVIATIONS, UNITS AND CONVERSION FACTORS 53 DATA SOURCES AND CLASSIFICATION OF COUNTRIES 54 Maps 1. LOCAL GOVERNMENT BOUNDARIES 55 2. LOCAL GOVERNMENT BOUNDARIES 56 3. MAJOR MINERAL AND PETROLEUM PROJECTS IN WESTERN AUSTRALIA 57 WESTERN AUSTRALIAN MINERAL AND PETROLEUM STATISTICS DIGEST 2006–07 LIST OF FIGURES FIGURE 1 EXPLORATION EXPENDITURE IN WA 2 FIGURE 28 IRON ORE QUANTITY AND VALUE BY QUARTER 19 FIGURE 2 PETROLEUM EXPLORATION EXPENDITURE 3 FIGURE 29 CHINA’S IRON ORE IMPORTS BY SOURCE 21 FIGURE 3 MINERAL EXPLORATION EXPENDITURE 3 FIGURE 30 IRON ORE PRICE A$/FE UNIT 22 FIGURE 4 MINING INVESTMENT 3 FIGURE 31 IRON ORE QUANTITY 22 FIGURE 5 WESTERN AUSTRALIAN MINERAL AND FIGURE 32 NICKEL PRICE A$/TONNE 23 PETROLEUM EXPORTS 2006–07 5 FIGURE 33 HISTORIC NICKEL PRICES 23 FIGURE 6 WESTERN AUSTRALIAN MERCHANDISE EXPORTS 2006–07 5 FIGURE 34 ESTIMATED NICKEL EXPORTS 24 FIGURE 7 AUSTRALIAN MERCHANDISE EXPORTS 5 FIGURE 35 NICKEL QUANTITY 24 FIGURE 8 WESTERN AUSTRALIAN MERCHANDISE FIGURE 36 NICKEL QUANTITY AND VALUE BY QUARTER 25 EXPORTS 2006–07 5 FIGURE 37 ALUMINA EXPORTS 26 FIGURE 9 VALUE BY COMMODITY 2006–07 6 FIGURE 38 ALUMINA PRICE A$/TONNE 26 FIGURE 10 MAJOR COMMODITIES BY VALUE 6 FIGURE 39 ALUMINA QUANTITY BY VALUE BY QUARTER 26 FIGURE 11 HISTORIC OIL AND GAS PRICES IN US DOLLARS 6 FIGURE 40 ALUMINA QUANTITY 27 FIGURE 12 AVERAGE PRICE COMPARISON 2005–06 AND 2006–07 7 FIGURE 41 GOLD PRICE 28 FIGURE 13 NON-RURAL COMMODITY PRICE INDEX 9 FIGURE 42 GOLD EXPORTS 29 FIGURE 14 EXCHANGE RATE US$/A$ 9 FIGURE 43 GOLD QUANTITY AND VALUE BY QUARTER 29 FIGURE 15 EXCHANGE RATE TRADE WEIGHTED INDEX 9 FIGURE 44 HISTORIC GOLD PRICE US$/A$ PER OUNCE 29 FIGURE 16 PETROLEUM EXPORTS 10 FIGURE 45 GOLD PRODUCTION 30 FIGURE 17 CRUDE OIL AND CONDENSATE EXPORTS 10 FIGURE 46 WORLD GOLD PRODUCTION 1840–2005 31 FIGURE 18 CRUDE OIL AND CONDENSATE QUANTITY FIGURE 47 HEAVY MINERAL SANDS VALUE AND VALUE BY QUARTER 11 OF PRODUCTION 33 FIGURE 19 TAPIS CRUDE OIL PRICE US$/BBL 11 FIGURE 48 HEAVY MINERAL SANDS VALUE BY QUARTER 34 FIGURE 20 HISTORIC OIL PRICES 11 FIGURE 49 HEAVY MINERAL SANDS EXPORTS 34 FIGURE 21 CRUDE OIL AND CONDENSATE QUANTITY 12 FIGURE 50 SELECTED WA COMMODITIES RELATIVE TO WORLD PRODUCTION ENDING 2006 FIGURE 22 LNG IMPORT PRICES 13 BY QUANTITY 38 FIGURE 23 AVERAGE NATURAL GAS PRICES 13 FIGURE 51 ROYALTY RECEIPTS BY COMMODITY 41 FIGURE 24 AVERAGE LNG IMPORT PRICES 13 FIGURE 52 ROYALTY RECEIPTS 2006–07 41 FIGURE 25 CRUDE OIL AND CONDENSATE FIGURE 53 VALUE OF MINERAL AND PETROLEUM PRODUCTION 2006–07 14 BY COMMODITY 43 FIGURE 26 NATURAL GAS PRODUCTION 2006–07 14 FIGURE 54 VALUE OF MINERALS AND PETROLEUM BY REGION 44 FIGURE 27 IRON ORE EXPORTS 16 WESTERN AUSTRALIAN MINERAL AND PETROLEUM STATISTICS DIGEST 2006–07 FOREWORD WELCOME TO THE DEPARTMENT OF INDUSTRY AND RESOURCES’ 2006–07 STATISTICS DIGEST. This publication contains the Western Australia is one of the most comprehensive statistical great mineral provinces of the information available on the world. It hosts an impressive Western Australian minerals 544 commercial mineral projects, and petroleum industry. embracing 1030 operating mine sites which produce over 50 The statistics in this Digest different minerals. In 2006–07, show that in 2006–07 the value there were also 62 operating oil of sales by the State’s minerals and gas fields. and petroleum sector set a new record, rising by 25 per cent to With a broad range of expansions reach $53.4 billion. This follows and new developments underway a decade of average annual to address continuing strong growth of twelve per cent. demand, it is expected that growth of the minerals and This record result was driven petroleum sector will continue by strong overseas demand in 2007–08. for our resources and rising commodity prices. Despite the It is not possible to prepare robust nature of the industry, the such a comprehensive range year produced many challenges of information without assistance and the impressive result was from outside the Department. achieved against a background of I would like to thank the various a strengthening Australian dollar, resource companies, Australian adverse weather conditions, skills Bureau of Agricultural and shortages and mining equipment Resource Economics (ABARE), supply constraints. Australian Bureau of Statistics (ABS) and the Western Australian The minerals and petroleum Department of Treasury and sector continues to remain the Finance for their cooperation engine of the State’s economy and help during the preparation accounting for around 30 per of this Digest. cent of Gross State Product, 88 per cent of its export income and around one-sixth of its employment. Jim Limerick Director General 1 WESTERN AUSTRALIAN MINERAL AND PETROLEUM STATISTICS DIGEST 2006–07 1. EXPLORATION AND INVESTMENT 1.1 Petroleum exploration It is therefore significant for Western Australia that commitments for exploration this year have not been In 2006–07, total petroleum exploration expenditure restricted to offshore areas. Albeit at a small level relative in Australia grew by 76 per cent to $2225.5 million. to offshore, it is heartening to see onshore exploration The majority of this expenditure, 78 per cent, was spent receiving an overdue boost with new interest in the offshore. ABS statistics also indicate that around three- Canning Basin. quarters of this expenditure was on areas outside of production leases. Further information on petroleum exploration activity in Western Australia can be found in the Department Expenditure on petroleum exploration in Western Australia of Industry and Resources’ publication “Petroleum during the same period grew by nearly 150 per cent to in Western Australia”. This publication contains a $1481 million. This represented 67 per cent of the national comprehensive overview of petroleum exploration activities total, an increase on 2004–05 when the share was 47 per in this State together with details on the cent. Listed below is a breakdown of the various states’ award of petroleum exploration permits. share of petroleum exploration expenditure for 2006–07: • Western Australia 67% 1.2 Mineral exploration • Northern Territory 13% • Queensland 9% Mineral exploration in Western Australia expanded significantly compared to 2005–06 by $249 million or • South Australia 7% 42 per cent in 2006–07 to reach $839.2 million. Of these • Victoria 3% funds, 60 per cent were spent on existing deposits with • New South Wales and Tasmania 1% the remaining 40 per cent spent on new ground. Significantly, 2006–07 has seen a large increase in new Although the current boom in mineral exploration in companies applying to explore in Western Australia. The Western Australia is welcome, in inflation-adjusted terms, high number of bids and the level of proposed investment, expenditure has not quite reached the level of the previous demonstrates the great interest in Western Australia. boom in 1996–07. Earlier in 2007, an unprecedented $841 million was Western Australia attracted 49 per cent of the total announced to be spent on new exploration work programs Australian mineral exploration budget of $1714.6 million in the State’s far north, including the largest single work in 2006–07. This percentage share is still short of the commitment in Western Australia’s petroleum exploration highs of the last boom during the mid- to late-90’s when history. In July 2007, the results of a second bidding the State share was around 62 per cent.

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