The New South Wales Government is set to unveil a deferment of $250 million in royalties, in a bid to position the state as a key critical minerals player.
The deferred royalty payments initiative is part of the NSW Critical Minerals and High-Tech Metals Strategy, which was first announced to be in development in September 2023.
The NSW Critical Minerals and High-Tech Metals Strategy will provide the framework for the critical minerals and high-tech metals mining industry while providing certainty and direction for the growing industry.
NSW currently has 21 of the 31 minerals considered critical in Australia, with rare earth elements, scandium, copper, silver and cobalt named the state’s five priority metals.
There are 12 critical minerals projects across NSW that are investment ready, which require approximately $7.6 billion in capital to bring online.
According to the NSW Government, the state will benefit from more than 2700 ongoing jobs, 4600 construction jobs in regional areas, and a healthy stream of royalties if new critical minerals projects can get off the ground.
The $250 million in royalty relief will allow critical minerals projects in NSW rely less on other streams of investment such as offshore banks and retail investors for funding.
“We are sending a clear message to Aussie and global miners: invest in NSW,” NSW Premier Chris Minns said, as reported by The Australian Financial Review.
“We’ve got the metals and minerals the world needs, and NSW is open for business.”
The Association of Mining and Exploration Companies (AMEC) – which contributed to the NSW Critical Minerals and High-Tech Metals Strategy – welcomed the announcement, describing the deferred royalty payments initiative as a “clever and innovative way” to gain more investment in NSW critical minerals projects.
“The NSW Government has identified the absolute priority to assist exploration and mining companies in the early stages of developing projects,” AMEC chief executive officer Warren Pearce said.
“It’s difficult to secure investment and receive appropriate approvals for new projects at the best of times. But doing so in emerging sectors, like critical minerals, is an added challenge to overcome.
“It’s a forward-thinking strategy that assists companies when they need it most but sows the seed to reward taxpayers down the track.”
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