Think of Western Australia and a few things come to mind.
A sparse population, home of the 2021 AFL Grand Final, red dirt, amazing natural resources, and a bustling mining industry.
According to the International Trade Association, there are about 350 operating mines in Australia, and about a third are in Western Australia, comfortably ahead of Queensland and New South Wales.
We have the iron ore boom in the 1960s to thank for that, but more on that in a moment.
WA’s mining origins
Firstly, it needs to be stated that not enough is known about the history of mining on the land that would come to be known as Western Australia.
There are dozens upon dozens of First Nations language, social or nation groups in Western Australia, and evidence for their residence dates back more than 60,000 years. Ochre and stone have been mined by these people for tens of thousands of years.
In a colonial context, Shaw and Partners director of Corporate Finance Davide Bosio says settlers first discovered coal shortly after the arrival of the First Fleet in 1788.
“The mining of coal provided heating, cooking and the essential fuel to drive the steam engine, enabling the establishment of an early rail transport system and the development of industrial enterprise, reliant on the burning of coal for energy,” he says.
“The mining industry played a minor role as wool, agriculture and sandalwood production dominated the early landscape until gold was discovered in 1823 which commenced a period of activity that continued into the 1850s, now commonly referred to as the gold rush.”
The gold rush was initially centred on New South Wales and Victoria, Bosio says, with Western Australia not garnering much interest until a discovery in Coolgardie in 1892.
“This sparked the Western Australian gold rush and has led to the Kalgoorlie region still operating as a producing gold town and being renowned globally as one of the most lucrative and prospective gold mining regions in the world,” Bosio says, but by the early 1900s the industry was in decline.
Iron ore boom
Following a fallow period that included two world wars and a state government focused on agriculture, iron ore would turn Western Australia’s fortunes around.
“In 1960, following a period of significant lobbying, the government made the decision to lift an embargo on iron ore exports,” Bosio says.
“This decision ultimately led to the second major resources boom in Australia’s history, following the gold rush, and created, what is today, the largest export industry in the country.
“The opening of the iron ore market created an enormous opportunity in the Pilbara region of Western Australia as the extent of unmined, high-grade ore became apparent.
“This led to a global rush of investment into Western Australia as the American, British and Japanese dominated the scene, looking to position themselves as key players in the growing global steel markets.”
Australian mining secures its reputation
The incredible interest in iron ore in Western Australia opened a swathe of opportunities for not just the state but the country as a whole, Bosio says.
“The global spotlight was on Western Australia and with the attention came significant funding from groups looking for more than just iron ore.
“The rush from the 60s led to discoveries in nickel, petroleum, copper and bauxite as well as further success within the gold sector.
“Commodities make up a significant portion of Australia’s export revenue led by iron ore sales which represent circa 80% of Western Australia’s minerals export income, excluding energy, and $157 billion in 2021.
“Mining combined with the petroleum industry accounted for 94% of Western Australia’s and 46% of Australia’s income from total merchandise exports in 2020.”
- Daniel Paproth