NSW Government announcement on Future Jobs and Investment Authorities

28 May 2024

Statement from NSW Minerals Council CEO Stephen Galilee

Today’s announcement from the NSW Government of a proposed model for the Future Jobs and Investment Authorities is a positive sign that long term planning for the future is being taken seriously.

The NSW mining industry has been involved in such planning for many years, including through the Upper Hunter Mining Dialogue established in 2012, and with pumped hydro and other post-mining projects now under development at several former mine sites.

The medium term outlook for NSW coal is strong. Nearly 90 percent of all coal produced in NSW is exported to more than 20 countries overseas, and demand for this high quality coal is likely to remain high for many years.

Reflecting this strong export demand, there are nearly forty coal mines currently operating across NSW, including seventeen in the Hunter region, with most involved in export coal markets.

Fifteen Upper Hunter mines either have approvals in place or are seeking approvals to continue mining to 2035 or beyond, with several seeking extensions to operate beyond 2040.

Beyond the Upper Hunter, another fifteen NSW coal mines either have approvals in place or are seeking approvals to continue mining into the 2030s, with six either approved or seeking approval to operate until 2040, and several seeking extensions to operate well beyond 2040.

This strong outlook provides time to plan for the future while the economic benefits and jobs continue.

The small number of NSW mining operations most likely to be affected by market changes in the short to medium term are those dependent on supplying coal to power stations here in NSW.

With most remaining NSW power stations forecast to close over the next decade, the impacts on these workers and their communities should be prioritised.

This includes the Lithgow region, as well as Lake Macquarie, where up to 1000 coal mining jobs are currently at risk due to changes to coal supply arrangements at the Eraring Power Station.

While the NSW Government’s commitment to plan for the future is welcome, merely replacing one bureaucratic structure with another, larger bureaucratic structure won’t deliver outcomes.

Funding must also be allocated to replace the scrapped ‘Resources for Regions’ program.

The ‘Resources for Regions’ program delivered significant funding for NSW mining communities, but was scrapped by the NSW Government in last years’ State Budget.

This funding must be restored in the upcoming State Budget, when the NSW Government will also receive a multi-billion dollar boost to its forward revenues due to coal royalty increases announced last year.