NSW Budget Update: Record Mining Royalties driving Economic Recovery

Statement from NSW Minerals Council CEO Stephen Galilee 

Mining royalties in NSW have risen to an all-time high, according to today’s NSW Half-Yearly Budget Update, highlighting the critical role of the NSW mining sector in the NSW economy.

Royalties are now forecast to deliver a record $2.8 billion for the State in 2021/22, well up from the original forecasted $1.6 billion, and double the $1.4 billion collected in the last budget.

Mining royalties have surged due to high and sustained demand for NSW mineral resources and ongoing high prices, including for gold and copper, and for thermal and coking coal.

The Budget Update indicates that NSW Treasury also expects mining royalties to remain at high levels for the 2022/23 budget year with a forecast of over $2.2 billion.

Record mining royalties are helping underpin the NSW Government’s fiscal strategy and infrastructure program through the 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.

The record royalty revenue is a demonstration of the ongoing strength and resilience of the NSW mining sector, and the commitment of those working in mining across the state.

Mining directly employs around 40,000 people across NSW and they have worked tirelessly and vigilantly to keep mines operating safely throughout Covid-19.

With the right policy settings, this strong contribution can continue well into the future.

Contact: Brad Emery