Critical Minerals and High-Tech Metals Strategy 2024-35

Introduction

NSW has abundant critical mineral resources and is well-positioned to significantly contribute to increasing global demand.

Global investment in renewable energy, electric vehicles and other advanced technologies is expected to drive demand for almost all metallic minerals into the future.

NSW stands to benefit from capital investment of more than $7.6 billion, more than 2,700 ongoing jobs, and 4,600 construction jobs in regional NSW and a healthy stream of royalties if new critical minerals projects can get off the ground.

The Strategy was developed following a comprehensive consultation process that involved public submissions, targeted stakeholder engagement and a Ministerial Roundtable, attracting responses from a broad cross-sector including mining companies, industry associations, unions, environmental and community groups, research organisations, universities and individuals.

Strategic pillars

The new Strategy sets out a clear vision for NSW to be a leader in critical minerals and high-tech metals, generating economic prosperity through responsible exploration, mining, processing, recycling and advanced manufacturing. 

Key features of the new Strategy include actions for:

Royalty deferral scheme

The NSW Government will defer royalties up to $250 million to help new critical minerals projects get off the ground in NSW.

The deferral will improve cashflow and investment feasibility for projects during the critical early years of operation, making it easier for them to secure finance from investors, free up capital and move forward to final investment decisions, allowing projects to move into production.

The NSW critical minerals industry is led by junior to mid-tier operators, projects have long lead times for development, and higher capital investment. This deferral demonstrates the NSW Government’s commitment to critical minerals projects and helps these operators to attract investment and get off the ground sooner.

The royalty deferral scheme will:

• be an opt-in program and would require companies to apply to receive the royalty deferral
• apply to projects that commence production between 1 July 2025 and 30 June 2030, receiving a royalty deferral for five years from the date of first production. For example, a royalty normally payable in Q1 2027 would be due in Q1 2032
• will apply exclusively to minerals on the Commonwealth Government’s Critical Minerals List and will not apply to other minerals such as copper or gold
• will only apply to projects that are predominantly extracting a critical mineral on the Critical Minerals List, and projects that have a market capitalisation of less than $5 billion. 

Companies would still be required to lodge their quarterly returns, but payment itself will be deferred. Repayment of deferred royalties will be subject to indexation consistent with the rate of Government borrowing at the time of the deferred payment.  

Implementation of the royalty deferral scheme will take place over the coming months. This will include legislative and regulatory changes.

Guidelines outlining the eligibility and length of the deferral period will be available soon. The guidelines will specify clear criteria and the process for applying and participating in the scheme, including reviews of compliance history, fit and proper person assessments and financial viability, consistent with checks already applied for titles assessment

The NSW Government will engage with industry as we develop these guidelines. 

Priority metals

NSW has abundant critical mineral resources and is well-positioned to significantly contribute to increasing global demand. 

The state has globally significant resources and 21 of the 31 nationally declared critical minerals. 

The Strategy has identified five priority minerals and metals for the state: 

• rare earth elements 
• scandium
• copper
• silver
• cobalt

Download the strategy