The Peel Region has a diverse economy based on mining and mineral processing, agriculture (including the equine industry), timber production, fishing, manufacturing, construction and tourism.

Mining

Peel Region is the third largest mineral producing region in Western Australia.  The main minerals are gold, bauxite and mineral sands.  In 2007-08, the Shires of Boddington, Murray and Waroona provided the feedstock for Western Australia's total output of alumina, valued at $4.5 billion. 

BHP Billiton Worsley mines bauxite at its Saddleback mine near Boddington which is transported via overland conveyor to Worsley (near Collie) to be refined. Additionally, the BHP Billiton Worsley Alumina Expansion is estimated to cost $2.5 billion with an increase in output from 3.5 to 4.6 million tons of bauxite. 

As gold prices have increased in recent years, a decision to re-open the Boddington Gold Mine was made in early 2006. The mine opened in October 2009 and it is estimated that the first 5 years will average approximately 1 million ounces/year in gold and over the 25-year life of the mine average approximately 850,000 ounces/year in gold. Copper extraction will average 30,000 tonnes/year over the life of the mine. Newmont Boddington Gold Mine is the largest open cut gold mine in Australia and the only operating gold mine on the doorstep of a capital city. 
 

Manufacturing, Retail and Services

The major manufacturing industries in the Peel include metal products, machinery and equipment, wood products, and food processing. The sector employs 13.5% of the Region’s workforce. Sales and service income generated from the manufacturing industry was estimated at $2.5 billion in 2006-07.
 
Retail turnover in 2008-09 was an estimated $920 million, representing 3.6% of the State total. In 2006 retail industries employed 12.4% of the Region’s workforce.
 

Agriculture, Forestry and Others 
 
Latest figures show that the total value of agricultural output in the Peel Region increased from $155 million to $164 million between 2005-06 and 2006-07.  The Peel Region’s contribution to the State’s total agriculture production has increased from 2.68% to 3.29% for the same time period. The total value of crops increased by 42.9%, the value for livestock product increased 54% and livestock disposals reduced by 18%.  
 
In 2005-06, the total value of fishing in the Peel was $13.8 million, down 7.5% on the previous year.  The lobster species continues to dominate the Region’s fishing output representing over 90% of the total estimated value however the combined total of fish and prawns have increased their share by 1.4% to 7.1% in 2005-06.  In the same year, the live catch size declined by 19% to total 753 tonnes however the average value per tonne increased by 14% to $18,278 per tonne.

Building and Construction
 
Building and construction accounted for 14.2% of the Peel Regional economy in the year to June 2009, and in 2006 employed 13.6% of the Region’s workforce.  In the 2010 Financial year there were 2,124 residential building approvals in the Peel Region with a total value of $471,215 million.
 

Commerce

The City of Mandurah is the major commercial centre of the Region and accommodates banking, investment and financial services, retail, wholesale, real estate, hospitality and accommodation services.  The retail sector, with approximately 4,200 jobs, is one of the largest employing industry sectors in the Region, accounting for 12.4% of the workforce. 

Tourism

Tourism is an important contributor to the Peel Region’s economy.  In 2006, 2007 and 2008 the annual average number of overnight visitors was 439,467[1].  This represents a slight decline over recent years, due to the reduction in the numbers of intrastate and interstate visitors.
 
In the three year period from 2006 to 2008, intrastate visitors accounted for 84% of total overnight visitor numbers, interstate visitors accounted for 11%, and international visitors 5%.  In the period from 2003-2005 to 2006-2008 intrastate visitors decreased by 10.3%, and interstate visitors decreased by 4.9% however international visitors increased by 46.8%.
 
It is estimated that overnight visitors spend an annual average of $138 million in the Peel region.