Gold and Western Australia go hand-in-hand. Ever since the initial gold rush in the late 19th century, the state has continued to punch above its weight in terms of gold production.

While in recent years much of the resource focus for WA has been on iron ore, LPG and lithium, gold has been a consistent performer that adds significant export value to the state and provides a secure job for tens of thousands working in the industry.

According to the latest data from the Chamber of Minerals and Energy WA, the number of people employed in the gold sector has almost doubled over the past decade from 16,742 in 2014 up to 33,285 last year.

The 2014 figure represented 17.6 per cent of the state’s total mining employment which jumped to one in every four workers at the end of 2024.

Chamber of Minerals and Energy WA Director Policy and Advocacy Anita Logiudice said gold mining and exports have been a crucial contributor to the WA economy for nearly 150 years.

“Gold today is the state’s third most valuable export behind only iron ore and LNG,” she said.

“Gold royalties paid to the WA government totalled $519 million in FY24, and the most recent state budget forecasts royalties will rise to $739 million in FY25 and $918 million in FY26.

“The price of gold has risen nearly 50 per cent in US dollar terms in 2025 alone, surpassing $US4000/oz in October. For context, gold was trading at around $US1300/oz when the COVID pandemic began in early 2020.”

The number of CMEWA members that list gold as its primary commodity has increased from 15 in 2014 to 21 in 2025 – an increase of 40 per cent.

According to the Federal Government’s Resources and Energy Quarterly: September Report, gold is expected to overtake LNG to be our second-highest value export in 2025-26 at a national level.

Australia still ranks as one of the top five gold producers in the world, alongside other nations including China, Russia, the United States and Canada.

The report notes that Australian mine production is expected to increase sharply over the next two years. From 293 tonnes in 2024-25 to 369 tonnes in 2026-27.

The increase in gold price also prompted a surge in exploration expenditure, with gold exploration spending up by 34 per cent year-on-year to the June quarter to $400 million. Gold’s share of total mineral exploration in Australia rose to 40 per cent since the June quarter.

The federal report says the expected increase in production is due largely to the Hemi mine coming online and the Kalgoorlie Consolidated Gold Mines mill expansion – owned by Northern Star following a merger with Saracen back in 2021.

The KCGM mill expansion is expected to turn the company’s Super Pit in WA’s Goldfields region into the largest producing mine in Australia – previously held by Newmont’s Boddington gold mine in the state’s South West region.

According to the recent data from CMEWA, the Goldfields-Esperance region is by far WA’s biggest gold-producing region, accounting for around 70 per cent of the state’s production.

However, with the discovery of the Hemi deposit, about 85km south of Port Hedland in the Pilbara region, there could soon be a large rise in the number of gold bars coming from the north of the state with a mineral resource estimate of about 11.2 million ounces as of November last year.

The federal report suggests that high prices have also raised the viability of lower grade mining operations, unlocking significant deposits of lower grades at new and existing mines. At the same time, this has also led to some Australian miners switching to processing lower grades to extend mine life with miners such as Newmont noting this approach at Boddington.

The record gold price has also seen a surge in interest at the Perth Mint, where recently customers were seen queueing outside waiting to get gold appraisals.

A Perth Mint spokeswoman said the number of customers visiting its premises has gone from an average of 5000 a week to an average of 8750 a week over the past four weeks.

“This has prompted us to recruit an additional eight staff to assist across our retail and customer operations teams,” she said.

“There has also been a big increase in people using our buyback service, where customers can sell their gold jewellery and coins to the Mint with many looking to capitalise on the strong returns that the current high gold price offers.”

Logiudice said it’s important to emphasise that WA’s gold sector had only been able to deliver strong employment outcomes and windfall royalties because it had attracted the investment required to remain operational through the inevitable downturns.

“Developing and deploying the technology needed to bring down production costs and remain globally competitive is not cheap and requires supportive government policy,” she said.

“That includes stable and predictable fiscal settings, including royalties, and an ongoing focus on bringing down energy costs and speeding up project assessments.”

Annual gold production in Western Australia has remained relatively stable over the past decade at between 190 and 210 tonnes. Rising costs, including labour and energy, as well as the depletion of existing deposits have had an impact.

However, the higher gold prices in recent years have resulted in a sharp rise in the value of gold production. And for a state that relies on its primary production industry, a continually steady gold market would mean a great deal for WA, and Australia, as it continues to rely on the resources sector as its major source of exports.

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