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Western Australia’s Growth in the Mining and Petroleum Industry: China and W. Australia’s economic dependence and cooperation to continue in the next two decades - Zpryme
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Austin, TX (ZPRYME NEWS) – 05/26/08 - Western Australia only accounts for 10 percent of the total population of Australia but it is the very propeller of the growth in the entire country. This tremendous development of Australia started with mutual dependence and cooperation between China and Australia.
In October, 2007 “W. Australia running on Chinese stream”, China Daily reported that according to the regional director of the Western Australia Overseas Government Network in China, BJ Zhuang, the economy of Western Australia relies on China for the growth of its market but China likewise depends on the competitive resources that Western Australia offers. In fact, China is the biggest market of Western Australia with an export value of 13.82 billion or over 60 percent of the total exports of Australia. Due also to the favorable political climate in Australia, twelve Chinese steel production companies, including PetroChina, invested heavily in Western.
David Lague “Western Australia reaps huge profits from Chinese boom”, reports that iron ore, which comprises 40 percent of the import in China, is the backbone of the trade relation between China and Australia. According to the chairman of the Indo Mines, Darryl Harris, one of the growth drivers of Western Australia is the growth of the iron ore industry which is also based on the demand of China for more steel. The research by the Australian National University suggests that the growth of W. Australia is more likely to continue for the next two decades as China’s demand increases.
This development has prompted Western Australia to massively increase its resources sector with over 95 billion dollar projects which are expected to create around 38 thousand construction projects and 9 thousand permanent jobs. The cChamber of Minerals and Energy likewise believes that by the year 2015, Western Australia will require 42 thousand skilled workers in order to meet the demand for that year. This would mean that Australia would need more than 400 thousand workers in the next ten years.
With these trends, the Economist on “Western Australia, Diggers for China’, revealed that one of the largest mining companies in Western Australia, the Rio Tinto, plans to increase their iron ore production to double that of 2007’s of 160 metric tonnes for the next four years.
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Zpryme: Emerging Markets Group
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