The report marked a 3.8% increase in WA iron ore production over the December quarter to a record 152 million tonnes.

The total volume of iron ore exported from the state increased by 6% during the quarter to reach 146Mt while the commodity’s export value increased by 12.6% to $A18.1 million.

After falling for four quarters, total mineral exploration expenditure has shown a small turnaround, increasing by 3.5% in the September quarter to reach $396 million.

It has been interpreted as a possible sign that exploration companies have come out of the end of the downturn and are seeking to re-commence exploration initiatives.

Unlike previous quarters, the overall decline in resources exploration spending was primarily driven by a decrease in petroleum exploration, which fell by 10.6% from the previous quarter to $752 million.

Conclusions broadly illustrated a slow transition to a less mining-focused economy in the state, with declining direct investment from China, weaker commodity prices, cost pressures and a graduation within the industry from a construction phase to a production phase.

This transition to a production phase is expected to be less labour intensive and result in lower employment growth in the medium term.

However, CME chief executive Reg Howard-Smith noted that the quarterly confirmed the importance of the resources sector on the national economy.

“This quarter we observed modest growth nationally, with increases in GDP at 0.6%, with mining production – including oil and gas – increasing 2.7% while non-mining sectors of the economy grew only 0.2%,” he said.

“The report is a timely reminder to all, that the health of the national economy remains reliant on the continued growth of the resources sector.”

The six months to October 2013 saw total capital expenditure on committed major projects in WA decline by 14% to $121.8 billion from $141.7 billion.

The decline in value was attributed to the completion of major projects over the period including the first stage of the $358 million Iron Bridge joint partnership iron ore project between Fortescue Metals Group, Formosa Plastics and Baosteel.

The total market capitalisation of WA resources companies at the end of November 2013 stood at $78.9 billion, a slight decrease of 0.7% from the end of August 2013.

Compared to the index starting base at August 2010, the market capitalisation of WA resources companies is 19% lower.

Due to a smaller number of listed companies making up the index, the average market capitalisation of the state’s resources companies increased by 0.2% to $132.8 million from August 2013.

“Clearly the Western Australian resources sector was in transition in 2013,” Howard-Smith said.

“Importantly, it wasn’t a transition from boom to bust but from a construction phase into a production phase, particularly for bulk commodities like iron ore and LNG.

“The production phase is when real benefits are delivered to the government, the community and shareholders.”