‘High risk, high reward’ exploration fund spruiks NSW critical mineral investment
The NSW government has backed in federal Labor’s clean energy gambit with $2.5m in critical mineral exploration.
Critical mineral prospecting in NSW will receive a $2.5m funding injection as part of a wider effort to modernise the state’s resources sector and supply the material needed for federal Labor’s clean energy push.
NSW Resources Minister Courtney Houssos has announced a new mining exploration fund, with the total investment split over several grants for exploratory geochemistry, geophysics and drilling.
Applicants are required to provide equal co-investment, with the system intended to make state mining ventures more lucrative while insulating developers from the pitfalls of high-risk, high-reward prospecting work.
There were 31 critical minerals identified in the Albanese government’s Critical Minerals Strategy 2023-2030, of which 21 can be found in NSW, including scandium, copper, silver, cobalt and rare earth metals. Their value is driven by their use in battery technology, personal electronics and green energy infrastructure such as wind turbines and solar panels.
Geochemistry, geophysics and drilling are used to determine where miners would be likely to find deposits, and appraise their potential value to see if a project would be viable.
“The exploration program is about supporting a pipeline of investment, helping explorers with discoveries that can lead to new opportunities for mining, processing and manufacturing,” Ms Houssos said. “Critical minerals are going to power the net-zero future. Whether it’s solar panels, wind turbines, batteries or electric vehicles, they all need materials and minerals that are found right here in NSW.
“I encourage experts and explorers from around the world to come here, partner with the NSW government, and kick off a new round of groundbreaking discoveries.”
In October, the Minns government announced a legislated deferral on royalty repayments from mining conglomerates to the state government in an effort to provide leeway in the early years of a project.
Along with Wednesday’s announcement, it marks the progress of a state strategy to shoulder more of the risks in the mining sector in an effort to push resources towards domestic manufacturing industries.
That plan, the Critical Minerals and High-Tech Metals Strategy, was released in September.
According to the state government, there are currently 190 exploration titles, with at least 10 projects seeking funding and 13 mines being worked statewide.
Grants will be available until June 30, ranging between $50,000 and $250,000 each.
“Exploration is undoubtedly the lifeblood of the mining industry. It’s highly speculative, high-risk but has also proved highly rewarding for Australia. We need incentives like this from the NSW government to discover new critical minerals deposits,” Association of Mining and Exploration Companies chief executive Warren Pearce said. “If we can get it right at the ground level, NSW can position itself as a major player in the critical minerals space.”
Mining ventures, particularly in NSW, have become increasingly difficult for state governments to incentivise given the rising prudence of developers and backlash of local communities.
Last year, the Bowdens silver mine and Blayney gold mine were shut down on the cusp of approval due to a Supreme Court decision and federal Aboriginal heritage protection order, respectively.
On Tuesday the Cadia gold mine in the state’s central west was fined $350,000 for breaching air pollution regulations off the back of local environmental advocacy.
The Australian Bureau of Statistics shows the total expenditure on mineral exploration in NSW has slumped from $87.2m in December 2022 to $60.9m by December 2024. This is compared to a less extreme federal decline from $1.03bn to $952.4m over the same period.
Alongside prospecting and operational support, the Critical Minerals Strategy also advocates for promoting circular economypractices such as recycling mine tailings and e-waste, along with investing in domestic manufacturing of clean energy resources,akin to its federal counterpart’s Future Made in Australia strategy
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