OECD report on the Pilbara recommends a greater focus on green mining and First Nations economic engagement

A new report on the Pilbara by the Organisation for Economic Co-operation and Development has suggested the region invest in green mining practices and put more focus on First Nations economic engagement. On Tuesday the OECD released its Mining Region and Cities Case of the Pilbara report which analysed the primary bottlenecks and opportunities for development in the region. The report outlined how the region, which is heavily dominated by the resources industry, had several impediments to economic diversification “Harsh climate, remoteness from metropolitan areas, and low population density act as disincentives for more diversified businesses and workers and their families to establish or remain in the region,” the report said. “Furthermore, the high dependence on extractive activities, particularly on iron ore, increases its vulnerability to economic volatility and makes it reliant on fly-in fly-out (FIFO) workers. “Combined with an uncertain long-term vision of the mining legacy in the region, these factors have fuelled a number of well-being challenges, including the highest cost of living in the state, acute socio-economic disparities with First Nations populations and shortage of affordable housing, which compound already difficult circumstances in recruiting workers for service provision such as childcare.” Greenhouse gas emissions in the Pilbara are twice as high as the average for other OECD mining regions according to the report. Despite the stated environmental challenges, the report also said the Pilbara was well placed to make the most of the green mining transition. “The green transition presents the Pilbara with an opportunity to diversify its economy and improve the well-being conditions of its communities, particularly for First Nations, while becoming a strategic player in the global shift towards more sustainable mining,” the report said. Key recommendations from the report included a Pilbara First Nations self-determination summit, tailored First Nations’ education services, a First Nations Pilbara Chamber of Commerce, more projects on critical minerals, better community integration of FIFO workers, and promoting renewable energy projects with First Nations community participation. The Pilbara accounts for 19.2 per cent of WA’s gross domestic product and has the seventh-lowest unemployment rate of the 50 OECD mining regions.