22 June, 2021
Today’s State Budget confirms the mining sector continues to deliver for the people of NSW. Mining royalties are helping underpin the NSW Government’s fiscal strategy and infrastructure program through provision of strong ongoing revenues into the NSW Generations Fund.
The NSW Generations Fund allows the NSW Government to offset debt to deliver its record infrastructure spending program, helping to build schools, roads and hospitals across NSW.
Mining royalties represent a significant proportion of revenue for the Fund, which is expected to grow to $90 billion by 2031 and has delivered investment returns of 8.6% since its inception in late 2018.
The Budget forecasts $1.6 billion will be raised from mining royalties in 2021-22. This is a $50 million increase on previous estimates, with higher prices for thermal coal offset by currency movements and Treasury expectations of lower gold prices. Mining royalties are now forecast to raise nearly $6.4 billion over the next four years, delivering significant ongoing funding for the NSW Generations Fund.
“Once again mining royalties are providing an economic boost to the State Budget, with royalty revenues now embedded as a critical component of the Government’s fiscal strategy,” NSW Minerals Council CEO Stephen Galilee said today.
The mining sector strongly welcomes the Deputy Premier’s budget announcement of the development of a Critical Minerals Strategy for NSW, which should complement existing government strategies for coal and other minerals.
“Back in 2018 we highlighted the need for a Minerals Strategy and to its credit the NSW Government responded with a solid plan for the future. The Deputy Premier’s new Critical Minerals Strategy can build on this to drive further innovative growth opportunities for mining regions over the long term.”
“We are also pleased the NSW Government will fund further geoscientific data provision, and further research into coal innovation technology to help drive more future investment opportunities for NSW.”
“The Deputy Premier has a strong understanding of the mining sector and has worked hard to deliver on his commendable vision to make NSW the number one destination for mining investment.”
The Budget also confirms ongoing departmental initiatives and activities relating to workplace health and safety, regulatory compliance, and upgrades to services provided to the sector.
“These commitments are also welcome, noting they are generally funded from existing industry fees and levies, including the Mine Safety Levy, the Administration Levy, and Rental Fees which together raise over $70m from the sector each year.”
ENDS
Callum Fountain | NSW Minerals Council | cfountain@nswmining.com.au | 0409 758 734 | 02 9274 1419