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Austin, TX (ZPRYME NEWS) – 05/22/08 - Western Australia’s mining operation is at a boom especially in the year 2007 which is almost relatively higher than the gross domestic product of other countries. However, together with this growth is the challenge to balance the concerns of small scale and large scale mining operators in Western Australia.

In The Australian News on August 30, 2007 on “Resources match the GDP of small countries”, revealed that for the fiscal year 2007, Western Australia’s resource industry sales amounted to 53.4 billion dollars which is 25 percent higher than that of 2006. According to the Minister of Western Australia Resources, Francis Logan, the value of the resource sector’s sales even equaled that of the GDP of other countries such as Qatar and Croatia. Majority of the growth is attributed to the iron ore, petroleum, and nickel sales which account for 75 percent of the total sales.

ABC Net in “WA resources earn $53 billion” reported that iron and petroleum were Western Australia’s biggest earners for the year 2007. The report mentioned that the hit to 53 billion dollars in the mining and petroleum industry of 2007 was a great increase from that of 2006. Accordingly, petroleum and iron each contributes at least 16 billion dollars of earnings. At present, Western Australia accounts for more than half of Australia’s sales in mineral and petroleum.

This development has prompted the government of Western Australia to ensure the provision of more infrastructures for the operations in the mines in Western Australia. ABC Net on April 21, 2008 on “Govt pressured to improve small miner infrastructure”, reported that government of WA faces the challenge on the need to improve mine facilities in the Pilbara region where there are five mining companies situated in the area which seek the action of the State Government to pressure mining giants like the BHP and the Rio Tinto to share with the small miners their railways and ports in order to take out all mined iron that they are not able to transport.

Due to these developments in the mining and petroleum industry of Western Australia, the State Government of Australia faces huge challenges on how to address the concerns of small miners to promote their sector and help them contribute to the economic growth of Australia and at the same time maintain good ties with established mining giants in Western Australia.

By

Zpryme: Emerging Markets Group

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