The December 2011 edition of the WA Resources and Economics report by CME and accounting firm KPMG found the state's resource sector outperformed the S&P/ASX 300 index.

The report found in the September quarter, iron ore production increased 8.9% and titanium minerals production increased 22.6%, however, iron ore's average export unit value fell 5.8% for the second consecutive quarter.

CME chief executive Reg Howard-Smith said a number of major projects should begin production over the next two years while demand for iron ore and natural gas remained strong.

"Labour demand in the WA resources sector has contributed to the lowest unemployment in the country at 4.3 per cent and direct employment in the resources sector cracked the 100,000 mark for the first time in December," Howard-Smith said.

"Growth in exports is forecast at a rapid pace of 8.56 per cent in 2011-12, with even stronger growth expected in 2012-13 in line with higher production of LNG over the medium term."

The report found mineral exploration had risen by 7% to $A482 million and gross state product would increase to 4.3% in the 2012 financial year and climb to 6% by 2014.

The CME said the 40 projects at advanced stages of development in WA cost $147.5 billion, up 35% or $38 billion from April 2011.

Howard-Smith said a 28% increase in uranium exploration showed the market was recovering from the Fukushima nuclear incident.

"News of the federal Labor party agreement to overturn its ban on uranium exports to India and a slight relaxation by WA Labor in its uranium policy may also continue to see a positive impact on exploration in 2012," he said.