An outlook on the Western Australian resources sector predicts that while the number of actual workers in the sector will decline between now and 2025, the percentage of fly-in, fly-out (Fifo) workers will increase in the near future.

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

The report notes that while this number is lower than current figures, the workforce will 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,” says CME CEO Reg Howard-Smith.

The report points out that the Fifo model provides employees with a choice between their working and living environments, but notes 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 is set to increase by 1.5% to 2015, while the number of Aboriginal workers in the sector will increase by 2.3% over this same period.

Howard-Smith says energy and water demands will continue to increase.

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

Water abstraction in the resources sector will increase from 530 G∙ in 2013 to 692 G∙ by 2020, while groundwater dewatering will represent the largest source of water abstracted in 2020, and is forecast to be 115 G∙ 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 says.

The outlook contains recommendations for government and industry, and includes 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 the Western Australia,” says Howard-Smith

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

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