The Hunter’s mines are continuing to deliver record royalties into the State Government’s coffers.
The NSW Budget was handed down yesterday with record royalties from the minerals sector. The royalties are at an estimated all-time high of $4.05 billion from 2022-23, up nearly $400 million from the previous year.
Over $11 billion in minerals royalty revenue is now expected to 2025-26.
CEO of the NSW Minerals Council Stephen Galillee said minerals royalties help underpin the NSW Government’s fiscal strategy through the provision of strong ongoing revenues into the NSW Generations Fund.
“That is delivering benefits to the people of NSW and its delivering increased investment here in the Hunter including an additional $220 million for an expanded Resources for Regions program which is funding shared by local councils to improve local services and infrastructure for mining communities across the state,”
“We’re also pleased to see a $130 million investment by the government in a Critical Minerals Activation Fund which will help further strengthen and diversify our sector NSW and provide opportunities for mining into the future,” said Stephen Galillee.
“Our coal industry is traveling in the best condition in living memory with very strong demand for our exports, record high prices and more jobs being provided in the coal sector by our member companies that any time in the last decade. At the same time we’re seeing incredible opportunities for growth in the metals and minerals sector through advances in technology and increasing global demand for those metals and minerals needed for those technologies.”
“The creation of a new $106.7 million Biodiversity Supply Fund is also welcome. This will help ensure biodiversity credits are easier to secure. The mining industry has been calling for the NSW Government to take a greater role in supporting landholders to create credits and to act as an intermediary in the market and while more funding will be needed over time, this Budget announcement is a good start.”
“The $14.8 million allocated to to modernise and streamline the water licensing approval systems for water users is also welcome. While mining is a relatively small user of water and recycle much of what we use, improvements to the water licensing regime will be of benefit.”
The huge amount of royalties might be good for the NSW coffers, but Hunter MPs are frustrated the region hasn’t seen more investment given the increased amount of royalties thanks to the region’s mining industry.