The New South Wales Government has released its 2023-24 Budget, which includes initiatives and funding aimed at assisting coal-producing regions and furthering opportunities for the state to leverage its critical minerals potential.
Included in the Budget is $5.2 million to establish Future Jobs and Investment Authorities. The regional authorities are expected to assist coal-producing regions to develop new industries and economic opportunities as New South Wales builds its renewable energy capability.
In August the State Government began consultations with workers, industry and community leaders in the Hunter region to establish the authorities. Once established they will support workers, industries and communities to harness the opportunities of a clean energy future.
The State Government has also announced it will develop a new and updated Critical Minerals and High-Tech Metals Strategy, with New South Wales in possession of 17 of the 26 nationally-identified critical minerals, including significant deposits of copper, silver and scandium.
The strategy will outline how the state can leverage its natural competitive advantage to create more local jobs by encouraging domestic processing and manufacturing of products with significant critical minerals inputs.
It will also investigate ways to develop skills and training opportunities in the workforce.
The New South Wales 2023-24 Budget also contains $27.5 million for geological survey work to encourage exploration of critical minerals in the state. By using a range of cutting-edge techniques, the data can help define areas of mineral or energy resource potential and provide focus for mining and exploration companies.
In the Budget, the State Government shared that it will also invest a total of $142.5 million across the Natural Resources portfolio, including $113 million over four years for mine work health and safety and $48.5 million over four years to reduce risks from legacy mines.
Industry response:
New South Wales Minerals Council CEO, Stephen Galilee, said that the new state Budget confirms the unfair burden regional mining communities will be forced to bear in the task of budget repair.
“While the New South Wales Government’s effort to repair the state’s fiscal position is commendable, regional mining communities are amongst those hardest hit.
“Mining royalties are forecast to deliver the New South Wales Government $13.2 billion over the next four years, including $2.7 billion from higher royalty rates to be introduced from 1 July 2024,” Mr Galilee said.
“This is the single biggest revenue decision taken by the New South Wales Government in this budget, confirming the important role mining is playing in repairing the New South Wales Budget position.
“It is, therefore, extremely disappointing that despite the extra billions to be delivered in mining royalties, the Budget cuts several key mining-related funding programs.
“These cuts will negatively impact mining communities and hinder the development of further long-term regional economic opportunities.
“The abolition of the ‘Resources for Regions’ program will directly affect the quality of life of all people living in the 26 local government areas previously eligible for program funding,” Mr Galilee said.
“This was an important program that delivered funding worth hundreds of millions over many years to local councils representing mining communities, helping to provide improved local infrastructure and services.”
Mr Galilee said the scrapping of both the Critical Minerals Activation Program and the Coal Innovation Program will hamper efforts to pursue long-term economic development opportunities for regional mining communities, including opportunities relating to emissions reductions.
“Almost all of the remaining mining-related Budget funding announced in the Budget is actually provided by the industry itself through various fees and levies.
“Mining communities deserve much better than this, including a fair share of the mining royalty revenue that their hard work delivers.”
