The New South Wales (NSW) government on Friday announced a A$250-million royalty deferral initiative for critical minerals projects and said it would examine the implementation of a rapid assessment framework for minerals mining projects.

The initiatives are the first actions of the state government’s new critical minerals and high-tech metals strategy, which sets a vision for NSW to become a global leader in critical minerals.

Currently, there are 12 critical minerals mining and processing projects in New South Wales that are ready for investment, requiring a capital investment of about  A$7.6-billion.

High initial investment costs for critical minerals projects are a barrier for the industry.

“The new royalty deferral scheme will assist mine proponents to attract investment and move faster to production,” commented NSW Natural Resources Minister Courtney Houssos.

Another immediate action from the strategy is a joint Department of Planning, Housing and Infrastructure, and NSW Resources, assessment to deliver greater certainty to the sector around the planning process for critical minerals projects.

NSW has globally significant resource deposits and 21 of the 31 nationally declared critical minerals. The strategy identifies priority minerals and metals for NSW, including rare earths, scandium, cobalt, copper and silver, which have important uses in the electrification of the economy and the manufacturing of clean energy products such as solar panels and batteries.

Citing the International Energy Agency, the government states that over the next 20 years, the world will need six times the amount of critical minerals currently mined to reach global net-zero carbon emissions.

“The energy transition will need double today’s copper production, triple today’s rare earth elements and cobalt production, and 30 times more nickel – all these minerals can be found in NSW.”

The Association of Mining and Exploration Companies (Amec) commends the announcement from the NSW government, stating that the A$250-million in royalty deferrals will provide a “massive boost” to the critical minerals industry.

“It’s difficult to secure investment and receive appropriate approvals for new projects at the best of times. But doing so in emerging sectors, like critical minerals, is an added challenge to overcome,” commented Amec CEO Warren Pearce.

He said the NSW government recognised companies’ need for assistance at the ground level, to get projects up and running and create jobs both in the construction and operational phases.

“It’s a forward-thinking strategy that assists companies when they need it most but sows the seed to reward taxpayers down the track.”

Pearce also welcomed the decision to review the approvals and planning process, which can often be drawn out, costly and without certainty. “To see the focus on this area is very encouraging,” he said.

Premier Chris Minns said that New South Wales was sending a clear message to Australian and global miners: "Invest in NSW."

"This is about backing regional jobs and manufacturing jobs, and taking advantage of the critical minerals boom.

“We want to make sure we fully realise the opportunities that critical minerals and high-tech metals have for NSW,” he said.