It's been more than two years since the state saw its AAA credit rating from Standard & Poor's stripped to AA+. In Indonesia, the state has long been a supplier of millions of tonnes of wheat annually and has even devised a noodle specific to local tastes. No industry more than iron ore rode the double-digit wave of growth that gripped China in the last decade and no place mines more of the steel-making raw material than Western Australia. The state reaped hundreds of millions of dollars in royalties each year as annual production surpassed a half-billion tonnes. China's still buying, but with so much iron ore around and industrial growth contracting each quarter, prices are down 75 percent from 2011 peaks, translating into much lower royalties.
Now, China has come back to slower growth rates. I agreed with what Barnett said that he had spent most of his time as premier dealing on that relationship with China and Japan, because in the last decade iron ore production would have doubled and liquefied natural gas production would have trebled. I think it is good for him to put more of his time into broadening and diversifying the economy