Mines clamp may cost $22bn, report warns

NSW risks losing $22 billion in private investment over the course of the next parliamentary term.

NSW risks losing $22 billion in private investment over the course of the next parliamentary term if restrictive policies are applied to the mining industry rather than those more favourable to growth.

A report, prepared by consultancy firm ACIL Tasman on behalf of the NSW Minerals Council, found any delays in mining licence approvals would trigger a precipitous fall in investment and revenue from which the industry might not recover.

The findings come as both major parties have signalled their hostility to big mining ahead of the state election on March 26.

The report also found NSW could lose $36bn and more than 6000 jobs per year over the next two decades by adopting policies that delayed mining projects, increased red tape or created bottlenecks.

It said mining-friendly policies could generate $13.3bn and more than 3000 jobs per year over the same period.

The Coalition last month announced plans to impose tougher conditions on exploration licences - including repealing the controversial "Part 3A" critical infrastructure planning laws, under which most mining projects are assessed - and removing upfront cash payments for exploration.

Planning Minister Tony Kelly used the last few hours before the NSW government went into caretaker mode to block a planned coalmine in the Labor-held marginal seat of Wyong on the Central Coast. The move was seen by some as populist and irresponsible.

NSW Minerals Council chief executive Nikki Williams slammed both parties for playing politics with the state's future.

"You can't treat an industry that's so significant like a political football without being very sure what you're doing," she said.

Dr Williams said neither political party had thought through the implications of their policies. "I'm incredibly concerned that the political parties, particularly in the lead up to an election, are coming out with policies without reflecting on their true impact," she said.

She said the Coalition's plans to repeal Part 3A were particularly damaging because they had been released without an alternative.

"What will replace part 3A? It has introduced a huge degree of uncertainty," she said.

Dr Williams said because there were about $30bn worth of projects still in the pipeline, the proposal amounted to retrospective legislation - a key industry objection to the federal government's original resources super-profits tax proposal.

"What the Coalition are proposing is changing things midstream," she said, adding that the Coalition's policies were "more aggressive" than Labor's.

Opposition primary industries and energy spokesman Duncan Gay hit back, saying the Coalition's policy would not damage mining.

"I don't think we are going to lose any of the good investment in NSW, and if we do it may be the sort of investment that we don't want," he said.

Mr Gay said a replacement for Part 3A would be announced before the election.

A spokesman for Mr Kelly said the government had held a series of community forums in the key mining areas to develop a range of initiatives to provide greater certainty for stakeholders, communities, the mining industry and the environment.

"The government fully appreciates the importance of the mining industry to the NSW economy, particularly in regional NSW, which is why it continues to support the Part 3A legislation that has generated some $61bn in investment and created close to 200,000 jobs," he said.