The Australian state of Western Australia has become the new top destination for mining investment, overtaking Nevada to claim first place, according to Canada’s Fraser Institute.

This year’s Annual Survey of Mining Companies ranks 84 jurisdictions around the world based on geologic attractiveness (minerals and metals), and government policies that encourage or deter exploration and investment.

Western Australia, which accounts for about 37 percent of the world’s iron ore production, moved up from fourth place in 2020 to lead the 2021 list; it's followed by the Canadian province of Saskatchewan, which climbed from third to second place, and Nevada in the US, which fell from the top place previously.

Rounding out the top 10 jurisdictions are Alaska, Arizona, Quebec, Idaho, Morocco, Yukon and South Australia.

In 2021, Western Australia’s resource industry achieved record sales of AU$230 billion and accounted for more than half of national goods exports, according to the Department of Mines, Industry Regulation and Safety.

Iron ore sales from the state surged to an unprecedented AU$157 billion given high prices and supply interruptions in competing markets. Meanwhile, the gold industry contributed to more than AU$16 billion in sales, underpinned by strong prices as economic and geopolitical uncertainty continued.

“Western Australia’s resources industry continued to deliver impressive results across key sectors and commodities, despite facing a challenging year,” Bill Johnston, the state's mines and petroleum minister, said in a statement. “(Its) remarkable range of critical and battery minerals, including lithium and nickel, will play a big part in our future success as the world transitions to clean energy.”

Lithium sales in Western Australia soared to an all-time high of AU$2.6 billion last year — a threefold increase — while nickel sales grew to AU$3.7 billion, the highest value since 2012.

In 2020 to 2021, investment in Western Australia’s mining and petroleum sector hit almost AU$21 billion, up from AU$19 billion in 2019 to 2020. Meanwhile, mineral exploration expenditure was AU$2.1 billion in 2020 to 2021 — that was its highest level since 2012, as well as a 21 percent increase from AU$1.7 billion in the preceding period.

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Securities Disclosure: I, Priscila Barrera, currently hold no direct investment interest in any company mentioned in this article.