Western Australia is located on the western end of the Australian continent. It is the largest state in Australia. The state also holds the distinction of being the second largest subnational entity world-wide. The state has a population of more than 2.2 million, which accounts for 10% of the total Australian population. The south west region of the state is inhabited by over 85% of the total population in the state. Perth is the capital of the Western Australia. The Indian Ocean is situated to the north, south as well as the west side of the state. The state shares its border with the Northern Territory in the north-east and with South Australia in the south-east direction.
The southwest coastal region of the state experiences a typical Mediterranean type of climate. Snowfall is occasional and takes place in the Porongurup Range. Counted as one of the top nine terrestrial habitats for terrestrial biodiversity, Western Australia boasts of several endemic species of flora and fauna. The area numbers in the top six regions for marine biodiversity, chiefly because of the offshore Leeuwin Current. The region also contains the most southerly coral reefs in the world. The central parts of the state are dominated by a semiarid climate, being a desert area. Hence, this region is sparsely populated. Mining is undertaken in the central parts. The state experiences an average annual rainfall of 200–250 millimetres.
The economy is centred on mining, tourism and agriculture industries. Western Australia provides over 36% of total overseas exports in Australia. It is also known for its iron ore production, being the third largest producer of iron-ore in the world. Due to the vast amount of natural resources found in Western Australia, extraction of different types of minerals and petroleum commodities is widespread. The extraction and processing of these natural resources drives the economy. The structure of the economy has developed favourably for the extraction and processing of natural resources in the state. Hence, the economy is much more capital – intensive, when compared to other states.
The chief commodities that are exported include iron-ore, crude oil, alumina and liquefied natural gas (LNG), gold, nickel, ammonia, wool, wheat and live cattle and sheep. The state produces and supplies more than 20% of the world’s bauxite. It is further processed into alumina at three refineries. The state also holds the distinction of being the world's third-largest iron-ore producer. WA accounts for about 75% of Australia's 240 tonnes of gold annually. The Argyle diamond mine, based north in the Kimberley region, is known for extracting diamonds. Kwinana, based south of Perth boasts of the largest oil refinery in the state. It provides sufficient diesel and petrol for local consumption.
Agriculture is a key industry, contributing vastly to Western Australia’s economy. Wheat, peas and barley crops are significant in the region. Live animals and meat products like lamb, beef and wool are much in demand. The state accounts for 50% of live cattle exports from Australia.
The tourism industry in Western Australia is largely driven by the coastal towns and cities, outside of Perth.