NSW miners have delivered a boost to the NSW Budget with the 2016-17 mid-year Budget Review increasing Treasury’s estimate of mining royalty revenue by $206 million to 2019-20.
This $206m royalty budget boost includes an additional $108m in this financial year, with a further additional $98m forecast to be collected in the following three years.
“This is more evidence of the benefits of mining for NSW. The $108m royalty revenue boost for 2016-17 announced today means total mining royalties are expected to be over $1.36 billion this financial year, helping to pay for services and infrastructure like hospitals, schools, roads and emergency services,” NSW Minerals Council CEO, Stephen Galilee said today.
“Coal continues to be our State’s most valuable export and mining activity underpins the economic strength of much of NSW. The mining regions of the Hunter, Illawarra, and Central West of NSW contribute so much to our State and with an upturn in commodity prices, we hope to see this contribution grow in 2017.”
Since January 2016, thermal coal prices have nearly doubled, and the coking coal price has nearly tripled. Continuing strong demand is also boosting industry optimism.
“This big budget boost from mining royalties strengthens the case for funding certainty for the Resources of Regions programme to ensure those mining communities doing the hard work to generate this royalty revenue get a fair return for their efforts,” Mr Galilee said.
“Resources for Regions is a great initiative for the mining communities of regional NSW. However the current funding model is clunky and inconsistent. Available funding goes up and down, and there’s no regular schedule for funding applications. Addressing these issues would ensure the programme meets its full potential,” he said.
Courtesy NSW Mining
13th December 2016