Western Australian Treasurer Rita Saffioti has warned her trade-exposed state must use its mining riches to insulate itself from rising global tensions and the prospect of war, vowing to invest billions of dollars to diversify the economy and stoke a local manufacturing revival.

Saffioti handed down a $2.5 billion operating surplus on Thursday for 2024-25, with almost $10 billion in mining royalties and $7.3 billion in GST receipts keeping WA solidly in the black for a seventh consecutive year.