Critical Minerals and High-Tech Metals Activation Fund - Stream 2

Applicants will be required to supply the following information as part of the Application: 

• organisation details including ABN
• an explanation of the applicant’s primary activities 
• demonstration of the experience and capability of the organisation to deliver the proposed infrastructure project, such as previous experience in delivering similar works 
• evidence of the organisation’s financial viability, including trading, profit & loss statements and balance sheets for two continuous years starting from the latest available year 
• description of the proposed infrastructure project scope and proposed use of the grant 
• project background, including the need the project infrastructure will address 
• asset management/whole of life planning details for the project 
• evidence of readiness of the project, including status of planning or regulatory approvals required to deliver the project, and if approvals have not been awarded, estimated timeframe for approval 
• key benefits, expected outcomes and measure of success 
• project plan, including identifying the scope, project timeline, key milestones, implementation methodology, risks and consequences with mitigation measures. 
• a detailed budget outlining the estimate of the total infrastructure project cost and the grant amount requested (maximum of 50 per cent of the total project cost). Costings to be at a +/- 20% level of accuracy  
• confirmation of the co-contribution to the project, including from the applicant and other sources
• quotes (dated within six months of submission) and technical documents
• a completed data sheet. The data sheet will be used to undertake a cost-benefit analysis which will be coordinated by the Department of Regional NSW using the information provided
• Details of the applicants $20 million Public Liability Insurance Policy or confirmation that a policy will be purchased prior to entering into the Funding Deed.

Eligible projects

To be eligible for funding, the proposed project must:

• support or be infrastructure needed to enable critical minerals or high-tech metals mining, processing or production in NSW 
• relate to at least one of the identified critical minerals and high-tech metals specified in Attachment A
• commence construction within 18 months from execution of the Funding Deed 
• already have, or be able to secure all necessary planning approvals and licences required for the proposed infrastructure project to achieve the delivery timeframe
• align with the objective of the Fund and the Stream Objectives 
• deliver significant benefits to the of critical minerals and high-tech metals extraction and/or downstream processing in regional NSW 
• use technologies that have been successfully demonstrated, and accepted by research and industry 
• the related mineral project must be significantly advanced and demonstrated to be economically feasibility
• create additional ongoing jobs in regional NSW that are sustainable and able to continue following Government investment (including jobs created as part of the related mineral project). 

Ineligible projects

The following are not considered eligible for funding:

• feasibility studies or strategy development
• infrastructure which is not directly related to mining, processing or production of the identified critical mineral or high-tech metal 
• projects that have already commenced, or have secured all required financial support to commence construction within the next 6 months  
• projects funding the day-to-day operations of an organisation or marketing and promotion activities
• projects which require ongoing funding from the  NSW Government
• projects that have already received NSW Government or other funding for the same outputs and outcomes. Note: a project is eligible, if it requires funding from multiple sources to enable the project to proceed. The project will be ineligible if the project will deliver the desired outcome entirely with the previously secured funding. 
• projects that have already commenced construction for the scope requested in the application
• projects not aligned with the objectives of the Fund.

Consortiums

Applications from consortiums are encouraged. An organisation must be appointed as the lead applicant and satisfy the eligibility criteria. The lead applicant is authorised to act on behalf of and bind each member of the consortium and, if the application is successful, enter into the Funding Deed and be ultimately responsible for delivering the project. The application must include a letter of support from each organisation involved in the application.

Ineligible entities (except for insolvent companies) can form part of a consortium but are not able to be the lead applicant. 

Applicants can be based internationally, interstate or in either metropolitan or regional NSW provided they satisfy the eligibility criteria. 

Organisations that applied for funding under Stream One – Project Activation Studies are eligible to apply for funding under Stream 2 – Enabling Project Infrastructure. 

Eligible Grant Amounts 

The minimum grant amount to be funded from the Department is $2 million. The maximum Department grant amount is $10 million. 

All grants are GST exclusive. GST will be applied on top of the agreed grant value when payment is made. 

Payment of grant amounts will be made in across a maximum of six instalments. Instalments and required evidence of expenditure will be agreed prior to executing the Funding Deed. 

Co-contributions 

All Applicants must provide a co-contribution. Co-contributions must be cash and at least 50% of the total project cost (unless otherwise approved by the Department in writing).

The co-contribution may be obtained from internal funds or third parties. 

Applicants will be required to provide evidence that the co-contribution is secured and confirmed, noting that Applicants are required to have access to their nominated co-contribution available through the delivery of the project. 

Eligible Costs

Eligible costs may only be incurred after both parties have executed the Funding Deed and before the completion date, such as: 

• infrastructure capital costs and civil costs 
• development, upgrade, or expansion of enabling project infrastructure, and associated utilities or civil works 
• purchase and installation of fixed plant required to commission infrastructure (new or upgraded)
• costs for technical, project management and direct labour costs of employees who are directly engaged on the project, to a maximum of 20% of the total project cost 
• contractor costs to deliver enabling infrastructure by a third party outside of the applicant’s organisation, excluding individuals who are recognised as an employee 
• contingency, to a maximum of 25% of the total project cost
• reasonable travel expenses incurred to deliver the project.  

Ineligible Costs

The following ineligible costs should be excluded from the project costing: 

• any expenditure incurred prior to the commencement of the Funding Deed  
• repayment of existing debts and/or budget deficits
• statutory fees and charges, including overhead charges such as insurance and leases 
• ongoing costs for business administration, operation or maintenance, including purchasing of assets such as furniture, motor vehicles, consumables, equipment, printers, software or ICT licences 
• project feasibility development costs, such as options analysis, feasibility studies or business case development 
• site acquisition costs, such as land purchase or lease costs, and any site rehabilitation costs 
• costs solely for the maintenance of infrastructure i.e., repairs without upgrading the functionality of the infrastructure 
• cost estimation services 
• costs within a community or town that do not directly contribute to the mining project, including the development, construction or upgrade of accommodation or residential areas 
• any costs incurred for planning or regulatory approval during the project period 
• the delivery of essential or core government services that should be funded from another source such as local government, the NSW Government or the Commonwealth Government
• costs relating solely to marketing, advertising or product promotion, including education and information campaigns 
• costs associated with grant applications, monitoring and administration costs, including any funding provided to professional services to support application submission
• costs which require ongoing funding from the NSW Government, beyond the delivery timeframe for the Fund  
• legal costs.