Record rains and flooding in the eastern states of Australia has hampered the exploration programmes of many companies in copper and gold-rich areas of New South Wales (NSW).
With reports of drill rigs being bogged axle deep as the rain continues to sweep through NSW – and with long-range forecasts not looking promising – explorers are still uncovering exciting new base, precious, and critical metals mineralization, while mine operators are continuing to boost the state’s economy.
Mining benefits
The recent NSW State Budget confirmed that mining continues to deliver, with minerals royalties expected to deliver record revenues in 2022-23.
The budget included an estimated all-time high of A$4.05B in revenue from minerals royalties in 2022-23, up nearly A$400M from the previous year.
Over A$11B in minerals royalty revenue is now expected to 2025-26. This is A$3.8B higher than previous Treasury forecasts and represents a strong dividend for the people of NSW that flows from a strong mining sector.
The budget also included a range of initiatives that the industry believes will help foster a strong mining sector into the future and support mining communities.
The mining industry says the NSW government deserves credit for maintaining minerals royalty rates at current levels.
“This sends a strong and positive signal for future job-generating mining investment in NSW and is in contrast to the approach being taken by the Queensland government,” NSW Minerals Council CEO, Stephen Galilee, said.
The budgeting of A$220M for an expanded Resources for Regions programme over the next three years is also tipped to deliver improvements to infrastructure and services in mining communities, and a better standard of living for mining families across NSW.
The government and industry believe an A$130M Critical Minerals Activation Fund has the potential to unlock significant future opportunities and growth and diversification of mining in NSW, taking advantage of the growing demand for metals and minerals needed to support technology and innovation, including batteries, electric vehicles, and renewable energy infrastructure.
An amount of A$10M in funding for geoscientific advice and support will help encourage further investment in exploration, helping NSW to compete with other states and drive greater investment in the mines of tomorrow.
The NSW Minerals Council said the state has been gradually improving its share of national exploration investment over the last decade, although there has been a recent decline.
“We strongly urge the NSW government to support further exploration through continued funding of the popular and effective Cooperative Drilling Programme beyond its current fourth funding round,” Mr Galilee said.
New analysis by the NSW Minerals Council has found the mining member companies directly injected over A$122B into the state’s economy over the last decade, creating tens of thousands of jobs and supporting thousands of local businesses across the state.
The analysis of the last decade’s figures also shows that its mining member companies steadily increased the number of direct jobs provided over the last ten years, from around 20,000 per year in 2011-12 to around 30,000 per year in 2020-21.
This includes an increase in the number of Hunter-based mining workers over the last decade.
Since 2012, the NSW Minerals Council’s Member Expenditure Survey has recorded the number of jobs its member companies provide in NSW, as well as direct spending levels, and the number of local businesses supported.
Now in its tenth year, analysis shows that its mining member companies directly invested A$28B in wages and salaries and over A$81B in purchases with thousands of local supplier businesses.
“These jobs and expenditure numbers are a direct reminder of the sustained economic contribution of mining to NSW over the last decade. The results highlight the importance of a strong mining sector for the NSW economy and for mining communities across the state,” Mr Galilee said.
“Local mining families and communities have done a lot of the economic lifting since 2012. They’ve worked hard to keep the industry operating, helping to maintain jobs, investment, and spending with local businesses. This has delivered economic stability, particularly when it has been needed most.”
Mr Galilee said that over the last few years, in particular, figures from the annual Member Expenditure Survey show that the NSW mining sector is stronger than ever, with outstanding opportunities on the horizon.
“Global demand for high-quality NSW metals and coal has continued at record levels, reflected in high prices. This has meant more mining jobs, more royalties for the people of NSW, and more economic benefits for NSW mining communities,” he said.
Exploration support
The NSW government has confirmed it will invest a further A$1.5M to support explorers searching for new deposits of critical minerals and high-tech metals essential for the manufacture of batteries, electric vehicles, and other renewable technologies.
The NSW minerals industry said the funding, which is part of the next round of the New Frontiers Cooperative Drilling Programme, will further strengthen the state’s position as a leader in critical minerals and high-tech metals exploration and mining.
Deputy premier and minister responsible for resources, Paul Toole, said the new programme was part of the NSW government’s commitment to promoting exploration investment and supporting the long-term sustainability of the sector.
“Critical minerals and high-tech metals represent a new frontier for mining in NSW, with the potential to generate thousands of jobs and billions of dollars in investment supporting our regional economies and communities,” Mr Toole said.
“Stimulating exploration will ensure NSW is prepared for surging demand for critical minerals in the future global economy, and now more explorers than ever before can access the funding, with eligibility to be expanded to include exploration geophysics.
“By encouraging exploration, we are improving our understanding of the state’s mineral resources to fully realize its economic potential.”
Round Five of New Frontiers comes one year after the previous round and builds on the A$8.4M announced for the programme since 2014. It is the first time the programme is being run in consecutive years.
Applications for Round Five of the New Frontiers Exploration Programme open on 1 September 2022 and close on 31 October 2022.
Meanwhile, a new series of NSW government funded geophysical surveys will take place in the state’s Central West, New England, and Far West to gather detailed information that will help to uncover valuable critical minerals buried deep underground.
Minister Toole said four surveys will be carried out by air and land, using a mix of cutting-edge technologies to reveal significant clues about minerals buried up to several hundred metres beneath the surface.
“Working closely with Geoscience Australia, we will deliver airborne gravity surveys in the Cobar Basin and New England, and airborne electromagnetic survey in Forbes-Dubbo and a seismic survey between Cobar and Ivanhoe,” Mr Toole said.
“These new surveys will ultimately boost our knowledge of resource potential across a greater area of the state, and that means we can provide more quality data to industry to spur on new exploration and investment.”
Mr Toole said recent surveys carried out in the Central West have delivered signs of potential deposits of minerals, such as gold, copper, and zinc, as well as what may be untapped groundwater.
“We have received positive feedback from the mining industry about the quality of the survey data, with several companies using the information to carry out licensed exploration programmes and even a new discovery of mineralization,” Mr Toole said.
“Exploration programmes today may lead to a critical minerals project in five to ten years that employs locals and plays a vital role in the manufacturing supply chain for products, such as batteries, electric vehicles, and renewables.
“It is an exciting time for mining in NSW,” he added.
Detailed underground mapping through the new surveys form part of a A$16M commitment over 10 years to unlocking the potential of the state’s natural resources and attracting investment.
