### NSW Government Announces AU$250 Million Royalty Deferral Initiative for Critical Minerals Projects
The New South Wales (NSW) government has unveiled a bold initiative to support critical minerals projects in the region. With a commitment of AU$250 million, the government aims to boost investment in the sector and create thousands of jobs as part of its new Critical Minerals and High-tech Metals Strategy.
The strategy, announced on October 18, has set the ambitious goal of positioning NSW as a global leader in the critical minerals space. A key aspect of the strategy is the implementation of a rapid assessment framework for critical minerals projects.
Minister for Planning and Public Spaces, Paul Scully, emphasized the importance of improving the system to provide greater guidance to the industry and enhance collaboration between government agencies and departments in project assessment.
At the core of the strategy are priority commodities such as rare earths, silver, scandium, copper, and cobalt. The government is also keen on promoting local processing facilities, fostering research and development, and exploring opportunities for critical minerals recycling to establish resilient supply chains.
The Critical Minerals and High-tech Metals Strategy is built on five key pillars:
– Minimizing investment risk in greenfield exploration and promoting exploration in new areas.
– Creating an attractive investment environment and removing barriers to project advancement.
– Providing training and education pathways to encourage careers in critical minerals mining.
– Examining local processing facilities and driving research and development.
– Ensuring responsible mining by engaging local communities.
Under the new initiative, critical minerals projects can opt-in to a royalty deferral scheme, with the first five years of royalties deferred. Projects that commence production between July 1, 2025, and June 30, 2030, will be eligible. Companies with market caps under AU$5 billion and a focus on critical minerals mining will have access to this benefit.
The Association of Mining and Exploration Companies (AMEC) praised the NSW government for this initiative, highlighting the significant boost it will provide to the state’s critical minerals industry. CEO Warren Peace acknowledged the challenges faced by companies in securing investment for new projects, especially in emerging sectors like critical minerals. He emphasized the importance of support at the ground level to kickstart projects and generate jobs.
Currently, there are 12 investment-ready critical minerals mining and processing projects in NSW, requiring approximately AU$7.6 billion in capital investment. These projects are projected to create around 4,600 construction jobs and 2,700 ongoing jobs, contributing to the growth of the state’s economy.
NSW is home to 21 out of 31 nationally declared critical minerals, signaling vast potential for growth and development in the sector. Premier Chris Minns reaffirmed the government’s commitment to attracting investments and leveraging the critical minerals boom to support regional and manufacturing jobs.
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**Securities Disclosure:** I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.