Each day, over 160 airline flights transport approximately 13,000 passengers between Perth Airport and various destinations across northern Australia. These flights primarily carry skilled workers to and from the region’s extensive minerals and energy operations. Similarly, Darwin and Brisbane airports facilitate air services to northern Australia’s resource hubs, further underscoring the sector’s significance to the national economy.
These high levels of air traffic serve as a real-time indicator of the health of Australia’s resources industry, which is largely concentrated north of the 26th parallel. In the 2023–24 period, aircraft and passenger movements between Perth and Western Australian destinations surpassed interstate traffic for the first time, setting new records in airport throughput.
Despite fluctuating commodity prices, the resources sector continues to demonstrate resilience. Northern Australia’s mineral wealth remains critical to the country’s economic stability, significantly contributing to both state and federal government revenues. According to the Department of Industry, Science, and Resources’ December 2024 Resources and Energy Quarterly, the minerals and energy sectors accounted for two-thirds of national exports and 11.4 percent of the country’s gross domestic product (GDP).
Northern Australia’s dominance in the resources sector makes it a cornerstone of the national economy. In the 2023–24 financial year, the region’s four most valuable exports—iron ore, liquefied natural gas (LNG), metallurgical coal, and thermal coal—generated a combined value of $261 billion, representing 63 percent of total resource exports. The region is the primary contributor to the nation’s iron ore exports, with projected volumes exceeding 900 million tonnes in 2024, making up 56 percent of the global seaborne trade. The Pilbara region remains the world’s largest iron ore production center, despite expectations of price moderation in 2025.
Metallurgical coal ranks as northern Australia’s second-largest export by volume, supplying 46 percent of global demand. The nation’s LNG exports, entirely sourced from northern Australia, totaled 81 million tonnes in 2023–24, valued at $69 billion. This energy supply is vital for economies such as Japan, Taiwan, and South Korea to ensure their energy security.
Investment in exploration activities serves as a long-term indicator of industry sustainability. According to S&P Global data, northern Australia hosts 803 of the country’s more than 2,000 exploration sites, with 632 of these projects operated by Australian-headquartered companies. The identified mineral and petroleum resources in these exploration sites hold an estimated value of $14 trillion. While regional exploration expenditure data remains unavailable, the Northern Territory provides an insightful trend, reporting an 86 percent increase in mineral exploration budgets over the five years leading to 2023–24. The search for critical and strategic minerals, such as lithium, copper, and uranium, largely drives the surge in investment.
Currently, northern Australia is home to 163 active mines, including those under construction. These operations extract a diverse range of resources, including copper, lithium, zinc, phosphate, vanadium, manganese, rare earths, gold, and coal. Additionally, 11 secondary processing facilities in the region refine minerals into value-added products such as alumina, aluminum, copper, and zinc.
With vast land availability and abundant sunlight, northern Australia is increasingly emerging as a key player in renewable energy production. From the Pilbara to Queensland’s resource hubs, many mines and processing plants are integrating solar energy, supplemented by coal and gas. The viability of exporting renewable electricity and green hydrogen remains uncertain, though potential markets are being explored.
Despite a promising future, the region faces several challenges in sustaining and expanding production. A report by the Australian Strategic Policy Institute (ASPI) in December 2024 highlighted vulnerabilities, particularly the inadequacy of infrastructure in withstanding severe weather events. Increased government investment in transport, energy, and telecommunications networks is essential to maintaining industry operations.
Over the past decade, federal and state project assessment and approval processes have improved, but further refinements are needed to ensure efficiency while maintaining scientific integrity. Effective coordination among government agencies at all levels is crucial for the sector’s continued growth.
The emergence of lower-cost LNG suppliers, such as the United States and Qatar, places competitive pressure on Australian LNG operations. Consequently, cost management remains a priority for both project developers and governments. Additionally, volatile prices for critical minerals—exacerbated by market manipulation from dominant producers such as China—have hindered the advancement of some projects. In response, Australia and its allied nations are collaborating to support the commercial viability of these ventures, facilitating global financing and transition into operational phases.
The reliance on fly-in, fly-out (FIFO) workers highlight both the strength of the resources sector and the chronic shortage of locally based skilled labor. Increasing the number of resident workers in northern Australia will enhance the region’s economic value and sustainability. Improving the liveability of regional towns and cities is essential to attracting and retaining a stable workforce.
While efforts to build a more permanent workforce continue, the daily influx of skilled personnel via air travel will remain a fundamental pillar of the resources sector, ensuring its continued contribution to the national economy and energy security.