PERTH (miningweekly.com) – An outlook on the Western Australian resources sector has predicted that while the number of actual workers in the sector would decline between now and 2025, the percentage of fly-in, fly-out (Fifo) workers would increase in the near future.

The Western Australian Chamber of Minerals and Energy (CME) on Friday released The Western Australian Resources Sector Outlook, compiled by advisory firm Deloitte Access Economics, revealing that by 2025, the resources sector workforce would be around 87 000, down from the current 105 200.

The report noted that while this number was lower than current figures, the workforce would still be nearly double that reported in 2004.

“The popularity of Fifo continues to grow. By 2020, it is expected the proportion of Fifo in the workforce will be approximately 63%, up from about 60% in 2014,” said CME CEO Reg Howard-Smith.

The report pointed out that the Fifo model provided employees with choice between their working and living environments, but noted that policy responses should continue to strike a balance between Fifo and the need to invest in social infrastructure in regional areas, in order to attract and retain skilled residential workers.

Meanwhile, the share of women in the resources sector was set to increase by 1.5% to 2015, while the number of Aboriginal workers in the sector would also increase by 2.3% over this same period.

Howard-Smith said energy and water demands would continue to increase.

Primary energy consumption in the sector would grow from 223 PJ in 2013, to 267 PJ by 2025, representing an annualised growth rate of 1.5%. The Pilbara alone would require an additional 61 PJ of energy by 2020, the report noted.

Water abstraction in the resources sector would increase from 530 GL in 2013 to 692 GL by 2020, while groundwater dewatering would represent the largest source of water abstracted in 2020, and was forecast to be 115 GL higher than 2013 levels.

“At the same time industry is plagued by escalating costs of doing business, fluctuating commodity prices, increasing difficulty in gaining access to capital, and policy settings which are not fostering growth in the resources sector,” Howard-Smith said.

The Outlook contains recommendations for government and industry, and included a call to the resources sector to continue its diversification in employment.

“Governments and industry need to work in partnership to ensure policy settings are appropriate to ensure current projects are delivered efficiently and effectively and future investment is attracted to Western Australia,” said Howard-Smith.

“The resources sector has a positive future with more than A$52-billion worth of projects either committed or under consideration,” he added.

“The sector will continue to deliver significant economic benefits to Western Australia for many years to come.”