NSW critical minerals strategy set to boost investment
The New South Wales Government has introduced a $250 million royalty deferral scheme to support critical minerals projects, alongside plans to establish a new assessment framework for mining projects as part of the state’s Critical Minerals and High-Tech Metals Strategy.
Currently, NSW has 12 critical minerals mining and processing projects ready for investment, requiring approximately $7.6 billion in capital and projected to create 4,600 construction jobs.
The royalty deferral scheme aims to alleviate upfront costs, drawing more investment to the state and boosting economic viability. This scheme allows companies to defer royalty payments in the first 5 years for projects set to begin production between July 2025 and June 2030.
The strategy also prioritises planning improvements through a collaborative assessment by the Department of Planning, Housing, and Infrastructure and NSW Resources, intended to increase certainty and streamline project approvals. NSW possesses 21 of Australia’s 31 recognised critical minerals, such as rare earths, cobalt, and silver, essential for clean energy technologies like solar panels and batteries.
The NSW Government’s strategy aligns with broader goals of advancing clean energy and expanding domestic manufacturing. According to the International Energy Agency, global demand for critical minerals will grow significantly over the next two decades to achieve net-zero carbon targets. The strategy also proposes exploring options for local refineries and manufacturing.
The view the Critical Minerals and High-Tech Metals Strategy, along with a summary, visit the NSW Resources website here.