Resources sector still booming in WA

SYDNEY (AAP) - Oct 06 - Despite uncertainty about the global economy, Western Australia's resources sector continues to show strong growth with major companies undertaking substantial mining expansions, a new report says.
The September 2011 edition of the WA Resources and Economics Report says Gross State Product is expected to grow by 4.3 per cent in 2011/12 and a further 6 per cent in 2012/13.
The report by WA's Chamber of Minerals and Energy (CME) and financial services firm KPMG says WA's resources sector bounced back from cyclones and floods earlier in the year to post an increase in state final demand of 1 per cent for the June quarter.
CME chief executive Reg Howard-Smith said iron ore and nickel recorded production increases of 14.8 per cent and 16.4 per cent respectively while gold increased by 4.8 per cent.
Titanium minerals reversed their downward trend by increasing 7.4 per cent and bauxite rebounded by 4.8 per cent during the June quarter.
The growth in production was supported by several expansion projects coming on line, especially in iron ore which translated to a 15.4 per cent increase in export value for that mineral.
BHP Billiton and Rio Tinto are undertaking substantial capacity expansions in the Pilbara.
Mr Howard-Smith said the overall outlook for increased commodity exports was strong against a backdrop of greater uncertainty in the world economy, primarily around the European debt crisis and weak US economic data.
"With the growth of our sector comes the growth of WA as a whole and the amount of resource projects either under consideration or in development will drive the states economy for years," he said.
The report also found that total mineral and petroleum exploration expenditure increased by 12.3 per cent from the previous quarter to $1.09 billion.