In a recent address, Aaron Morey, the new chief executive officer of the Chamber of Minerals and Energy (CME), asserted that Western Australia’s resources sector is poised for continued growth. Morey emphasized that the sector’s foundations were laid on bold actions, particularly referencing the historical Goldfields water pipeline, which was under construction when the CME was founded in 1901.
Critics at the time predicted financial disaster, claiming that the region’s gold resources would soon be depleted, leading to a burdensome debt of £2.5 million. This amount was nearly equivalent to the entire annual budget of Western Australia. Contrary to these fears, the Kalgoorlie’s Golden Mile has maintained continuous mining operations since the completion of the pipeline, with substantial reserves still to be explored beneath the Super Pit.
Historical Context and Economic Impact
The mining industry has been a crucial contributor to Western Australia’s economy, with CME members generating approximately $970 million in taxes, royalties, and other government payments weekly. Morey noted that while gold was pivotal in the early development of the sector, iron ore and liquefied natural gas (LNG) have since played significant roles in driving economic growth.
Looking ahead, Morey expressed confidence that the resources sector is closer to its beginning than its end. He highlighted the ongoing demand for traditional commodities and the emerging opportunities presented by the energy transition and advancements in artificial intelligence. With nearly the entire periodic table of elements lying beneath Western Australia, the potential for new mining ventures remains vast.
“Our hard-won reputation as a reliable trading partner positions us well in global efforts to diversify critical mineral supply chains,” said Morey. The demand for Western Australia’s resources, including lithium and bauxite, is expected to grow as industries pivot towards sustainable practices.
Future Challenges and Strategic Direction
Despite these opportunities, Morey acknowledged significant challenges facing the industry. Rising energy costs, lengthy project assessments, and legal obstacles that hinder development pose risks to future competitiveness. He stressed the importance of collaboration between the government and industry to address these issues effectively.
“A shared commitment to placing WA on the path back to competitiveness is essential,” he stated. Morey called for assessment processes that are thorough yet efficient, particularly as discussions begin around the EPBC reforms recently legislated. He advocated for approvals based on scientific evidence, free from ideological influences, and emphasized the ongoing importance of gas in maintaining affordability and reliability within future energy grids.
As the CME’s CEO, Morey aims to foster constructive relationships with government and member companies to promote policies that enhance productivity and attract new investment. He drew parallels between the pioneers who supported CY O’Connor’s ambitious pipeline project and today’s stakeholders, highlighting that success requires bold actions and a commitment to collaboration.
“If we choose ambition over complacency and long-term thinking over short-term politics, the next century of our resources story will be even more remarkable than the last,” concluded Morey. With a clear vision for the future, Western Australia stands at a critical juncture, ready to capitalize on the vast opportunities the resources sector has to offer.
