Western Australia’s Performance on the Resource Governance Index
Western Australia received a “satisfactory” score of 85, ranking 4th out of 58 countries. An excellent Enabling Environment score was countered by only “partial” implementation of Safeguards and Quality Controls.
(out of 58)
(out of 100)
|2||Institutional & Legal Setting||88|
|20||Safeguards & Quality Controls||65|
Institutional & Legal Setting Rank: 2nd/58, Score: 88/100 learn more
Western Australia’s “satisfactory” score of 88 reflects comprehensive laws governing the extractive industries, an independent licensing process, and transparent budgetary policies.
In Australia, state and national authorities share the responsibility of governing the extractive industries. States regulate mining operations and collect royalties and other fees; only the federal government has the power to tax company profits.
Australia’s Freedom of Information Act requires disclosure of information on the mineral sector, and environmental and social impact assessments are mandatory before mineral rights can be awarded. In 2011 the government announced that Australia would join the Extractive Industries Transparency Initiative, beginning with a pilot project in July 2012.
Reporting Practices Rank: 4th/58, Score: 87/100 learn more
Western Australia publishes data on most important indicators, earning a “satisfactory” score of 87. However, it fails to provide comprehensive information on government subsidies to the mining industry or social payments made by extractive companies.
Western Australia’s Department of Mining and Petroleum (DMP) publishes information on the licensing process, contracts, and environmental and social impact assessments. It produces audited annual financial reports and maintains an online searchable database with information on reserves, prices, the value of exports, estimates of investment in exploration and development, production by company/block, production stream values, royalties, license fees, and lease income. The Australian Bureau of Statistics publishes some information on mining revenue, but less systematically than the DMP.
Safeguards & Quality Controls Rank: 20th/58, Score: 65/100 learn more
Western Australia’s “partial” score of 65 is due to the poor quality of some government reports, incomplete oversight of the licensing process, and a lack of robust conflict-of-interest disclosure requirements.
The licensing process is intended to be open and competitive, but the first-come, first-served system may ultimately reduce competition by allowing companies to stall the approval process or lock out competitors once exploration licenses have been granted. Parliament has no specific role in the approval of mining licenses, which can be appealed on environmental or public interest grounds.
The DMP’s revenues are audited by an independent authority and reviewed by the state legislature. There are no requirements that government officials with an oversight role in the sector disclose their financial interests in extractive projects.
Enabling Environment Rank: 2nd/58, Score: 96/100 learn more
Australia performed extremely well on rankings of overall governance, accountability, democracy, and the rule of law, receiving a “satisfactory” score of 96.
Natural Resource Fund learn more
In May 2012, Western Australia became the first state to announce plans to establish a Future Fund to be managed by the state treasurer. According to proposed legislation, the fund would receive at least 1 percent of the state’s annual royalty revenue. Interest would be reinvested and spending prohibited for a period of 20 years.
Subnational Transfers Rank: 6th/30, Score: 86/100 learn more
Western Australia has established a “Royalties for Regions” program that allocates 25 percent of state mineral royalties for local development. Both the state and local governments publish information on these transfers, which are typically used to maintain community infrastructure.View full questionnaire for Australia (Western)
Download questionnaire for Australia (Western)
INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
To explore all data and compare country scores, use the RGI Data Tool.
Key Economic Indicators
|GDP (constant 2011 international $ billions)||530.7||784.0||1379.4|
|GDP per capita, PPP (constant 2005 international $)||29,504||32,523||34,395|
|Oil and gas revenue (% total government revenue)||1||1|
|Extractive exports (% total exports)||39||47||67|
|Sources: Oil and gas revenue as share of total government revenue from the Economist Intelligence Unit and the International Monetary Fund. All other data form the World Bank. Oil and gas revenues 2011 data from 2010.|