WA's resources sector has been identified in the Fraser Institute Survey of Mining Companies 2013 as the world's top-rated jurisdiction for "investment attractiveness".
With a score of 85.3 out of a possible 100 in the survey's Investment Attractiveness Index, WA ranked number one in the world over Nevada (84.2) and Newfoundland and Labrador (81.3).
This morning Mines and Petroleum Minister Bill Marmion said the results reinforced that WA had what it took to be globally competitive.
But he warned it was important not to be complacent.
"Increasing competition for global capital means that without the right policies, companies will simply look elsewhere to develop resource projects," Mr Marmion said. "For this reason I am particularly pleased to see comments by an exploration company president identifying the State's new Mining Rehabilitation Fund as 'exemplary policy'.
"The State also received encouraging comments in regard to managing native title approvals."
WA also ranked second in the world in the Best Practices Mineral Potential Index and sixth in the Policy Perception Index (PPI). These two categories combined create the overall Investment Attractiveness Index category.
The Best Practices Mineral Potential Index ranks a region's mineral potential with exploration investment potential, independent of policy restrictions. In this category WA and Nevada (0.82) were equal second to Alaska (0.83).
Other closest ranked Australian jurisdictions in this category included Queensland, 18th in the world (0.73) and Northern Territory, 24th (0.70).
In the Policy Perception Index South Australia ranked 11th in the world (82.9) and Northern Territory was 13th (81.8), while in the Investment Attractiveness Index, Northern Territory was ranked 17th with 74.7 out of a possible 100, followed by South Australia, 20 (73.8) and Queensland, 21 (73.5).
"WA has a dynamic, world class resources industry which underpins the State and national economies and as Minister for Mines and Petroleum I intend to ensure it remains that way," Mr Marmion said.