The 2025–26 NSW Budget delivers a strong commitment to mining investment with multiple initiatives designed to spur growth. Key funding commitments include $100 million to support new investment and retain jobs across New South Wales’ mining sector. This budget reflects a strategic focus on critical minerals, project acceleration, and reducing industry bottlenecks across exploration and approvals.
$100M Mining Support Fund to Drive Growth
The $100 million investment is aimed at boosting investor confidence and safeguarding existing mining employment. It also encourages exploration into new projects, especially in high-value resources and critical minerals.
This strategic move aligns with the state’s broader plan to solidify its standing in global critical minerals supply chains. The funding allocation highlights the NSW Government’s commitment to resource development as a pillar of economic resilience.
Investment Delivery Authority to Accelerate Approvals
The budget also allocates $17.7 million to establish the Investment Delivery Authority (IDA), focused on fast-tracking large-scale projects. The IDA will assist up to 30 major projects annually, targeting investments over $1 billion in value.
The expected result is the potential to unlock $50 billion in economic activity each year, significantly enhancing the state economy. AMEC CEO Warren Pearce said the initiative sends a positive signal to stakeholders in mining and exploration.
He emphasised that the IDA could deliver transformational change in reducing delays for large resource projects.
Royalty Deferrals for Critical Minerals Projects
The NSW Government has also confirmed a royalty deferral scheme worth up to $250 million for eligible critical minerals operations. This forms a core part of the NSW Critical Minerals and High-Tech Metals Strategy, providing cashflow relief to early-stage projects.
Pearce applauded the government for recognising the market challenges and supporting project viability in a volatile global environment. The deferral allows developers to prioritise early-stage spending on infrastructure, exploration, and workforce development. It will strengthen investor confidence and help attract international partners seeking stable, long-term resource supply.
Royalty deferral scheme worth up to $250 million
Mining Royalties Forecast to Deliver $13.2 Billion
The NSW Budget also projects strong revenues from mining activity. Mining royalties are forecast to deliver $13.2 billion over the forward estimates to 2028–29, highlighting the industry’s importance. This provides essential fiscal support for health, education, and infrastructure across the state, even amid global headwinds.
NSW Minerals Council CEO Stephen Galilee said the treasurer deserves recognition for balancing fiscal responsibility and economic stimulus. Galilee noted that the budget outlines a clear focus on reducing regulation and stimulating job creation and investment.
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Industry Seeks Further Reform in Land Access
While peak industry bodies welcomed the budget measures, both AMEC and the NSW Minerals Council urged continued reforms. They called for streamlined land access processes and faster approvals to fully unlock the state’s mineral potential. Pearce highlighted that while deferrals are helpful, structural reform is needed to eliminate lengthy delays in exploration permitting.
Improved access frameworks would better align with the goals of the Investment Delivery Authority and fast-track project delivery. Galilee echoed the sentiment, saying reducing red tape will ensure NSW remains a globally competitive mining jurisdiction.
A Long-Term Vision for NSW Resources Future
The 2025–26 NSW Budget positions the state as a leader in mining and resource development. Its initiatives reflect a clear vision to support job creation, innovation, and long-term investment in critical minerals.
With demand growing for clean energy technology inputs, NSW’s mineral wealth can power the transition to net zero. The budget lays a solid foundation, but ongoing reforms will be critical to realising full project potential. As the global race for resources accelerates, the state’s proactive approach could help it stay ahead.
