2019 NSW ELECTION POLICY PRIORITIES MANIFESTO - NSW MINERALS COUNCIL 2019 NSW ELECTION POLICY PRIORITIES MANIFESTO - NSW Mining
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2019 NSW ELECTION
POLICY PRIORITIES
MANIFESTO
NSW MINERALS COUNCIL
1 2019 NSW ELECTION POLICY PRIORITIES MANIFESTONSW Minerals Council
PO Box H367
Australia Square NSW 1215
ABN 42 002 500 316
E: information@nswmining.com.au
www.nswmining.com.au
2 2019 NSW ELECTION POLICY PRIORITIES MANIFESTOContents
The importance of mining in NSW ............................................................................................. 4
1 Policy Principles .......................................................................................................... 5
1.1 Support a strong future for the NSW mining sector ....................................................... 5
1.2 Support coal mining jobs and the NSW coal sector ....................................................... 5
1.3 Recognise and respect sovereign risk issues ................................................................ 5
1.4 Support mining communities .......................................................................................... 5
1.5 No coalition or power sharing arrangements with the NSW Greens ............................. 6
2 Policy Commitments.................................................................................................... 7
2.1 Support exploration and mining investment in NSW ..................................................... 7
2.2 Avoid new regulatory costs and commit to independent scrutiny of new regulatory
proposals ........................................................................................................................ 7
2.3 Improve the planning assessment process – more investment and more jobs ............. 7
2.4 A NSW energy strategy that delivers reliable electricity at least cost ............................ 8
2.5 Additional, sustainable funding for Resources for Regions ........................................... 9
2.6 Support for the Upper Hunter Mining Dialogue .............................................................. 9
2.7 Support for indigenous school education programs ...................................................... 9
2.8 Support industry focus on health and safety ................................................................ 10
4 Scorecard .................................................................................................................... 11
3 2019 NSW ELECTION POLICY PRIORITIES MANIFESTOThe importance of mining in NSW
Mining is a strategic industry for the NSW economy. Mining underpins the strength of regional
economies across the state and has significant flow-on benefits to other industries.
The NSW mining industry:
• Employs more than 40,000 people across the state, mostly in regional areas
• Spent $10.4 billion on suppliers, wages and salaries, local government payments and community
contributions in NSW during 2016-17, helping to support over 6,600 supplier businesses across the
State
• Generated $1.8 billion in royalties in 2017-18, forecast to rise to $2 billion this financial year
• Provides the coal needed to deliver more than 80 per cent of the electricity used in NSW
• Has a production value of $24.7 billion
• Is the state’s single largest export industry, with exports of approximately $19 billion in value
(including coal at more than $15 billion in value)
There is strong community support for the mining industry and almost universal public recognition of
its economic importance to NSW, including the role of the sector in providing jobs in the regions.
What are we seeking?
As the 2019 NSW State Election approaches, the NSW Minerals Council (NSWMC) has outlined its
key policy principles and related policy commitments and is seeking responses from relevant parties.
We have outlined five high level principles that we believe must form the guiding basis of any
government’s approach to mining policy in NSW.
We have also outlined twenty specific policy commitments that we believe are needed to ensure a
strong and vibrant future for the mining sector in NSW.
Specific responses to each are sought via the completion of the scorecard on page 11.
Voters in Mining-Dependent Communities May Decide Election Outcome
Responses received will be communicated broadly across the NSW mining sector, including to many
of the more than 40,000 people working directly in the mining industry.
Responses received will also be circulated to the public in the mining communities of NSW, including
in several key marginal seats that may decide the election outcome.
4 2019 NSW ELECTION POLICY PRIORITIES MANIFESTO1 Policy Principles
1.1 Support a strong future for the NSW mining sector
The primary object of the Mining Act 1992 is to “... encourage and facilitate the discovery and
development of mineral resources in New South Wales ...”. In recent years there has been no clear set
of policies to attract investment and drive growth in the minerals sector, leaving NSW behind other
Australian States and Territories.
An incoming government should recognise the importance of the mining sector to the NSW economy
and develop supportive, clearly articulated policies to take advantage of the significant opportunities
presented by increasing global demand for minerals.
1.2 Support coal mining jobs and the NSW coal sector
Coal is the State’s largest export, it provides tens of thousands of direct jobs in regional NSW and will
continue to be a significant source of energy in both NSW and in our major trading partners in Asia.
Commodity Insights has forecast Asian thermal coal import demand to grow by 400 million tonnes by
2030, presenting a significant opportunity for NSW to supply a share of this growth.
Given its high quality, NSW coal can help deliver lower emissions when combined with the latest high
efficiency, low emission generation technology, while the adoption of carbon capture and storage - a
proven technology - will help deliver deep cuts in emissions while maintaining important industries and
a secure and reliable electricity supply. Multiple sets of polling conducted by the industry show greater
than 60% support for new coal fired power stations to be built if they have lower emissions.
The NSW Greens have stated their intention to shut down the thermal coal mining industry in NSW over
10 years, which would wreak havoc on the NSW economy and devastate regional communities
throughout NSW.
NSWMC seeks commitments from the major parties that coal projects will continue to be assessed on
their merits and that new coal exploration licences will be issued in accordance with the Strategic
Release Framework.
1.3 Recognise and respect sovereign risk issues
Mining projects involve significant capital investments and can take more than a decade to explore,
design and obtain the required planning approvals. Significant investments of hundreds of millions of
dollars are often made before a project is even approved or constructed.
An incoming government should not put existing investments in jeopardy, no matter what stage of the
planning assessment process they are at. Investments made in good faith under the existing regulatory
framework should not have their value reduced or destroyed by policies that hinder or prevent them from
proceeding. Any suggestion that titles and leases may be cancelled without compensation, as has
occurred under the current government, must be completely avoided.
NSWMC seeks commitments from the major parties that they understand this important principle and
that their policies will not pose sovereign risks for existing exploration and mining investment in NSW.
1.4 Support mining communities
Mining supports some of the state’s most vibrant regional communities such as Orange, the Hunter
Valley, Mudgee, Parkes, and Lithgow. NSW miners live and work locally and are an integral part of
these communities.
5 2019 NSW ELECTION POLICY PRIORITIES MANIFESTOThe industry invests considerable resources supporting the community in the form of developer
contributions and Voluntary Planning Agreements, investments in local infrastructure, and investments
in local community groups and social initiatives. It is important that the industry’s contributions are
supported by government contributions to ensure mining communities have access to quality
infrastructure and services.
NSWMC is calling for any incoming government to:
• Support the Upper Hunter Mining Dialogue - The industry-led Upper Hunter Mining
Dialogue brings together the mining industry, community, government and other groups
to discuss issues related to mining in the region and ways to address them. The
involvement of government agencies has been crucial and ongoing involvement is
needed to ensure the dialogue continues its success to date.
• Invest in Resources for Regions - The current Resources for Regions program has
been a good first step in providing a much-needed source of additional infrastructure
funding to many regional mining communities. However, mining communities deserve
the certainty of a long-term, sustainable funding model from existing revenue streams to
support public infrastructure investment. Any incoming government should fund a
proper Royalties for Regions style program from existing royalties.
• Provide ongoing funding for the Clontarf Foundation and Girls Academy - These
organisations provide essential support to Aboriginal and Torres Strait Islander boys
and girls during their schooling years, helping to improve attendance, engagement and
employment prospects. Long term, sustainable funding models are needed to ensure
these organisations can continue to expand and deliver their services, which have huge
positive impacts throughout the community.
1.5 No coalition or power sharing arrangements with the NSW Greens
The 2019 NSW State Election will be a closely fought contest and there is the very real prospect of a
minority Government.
NSWMC seeks commitments from the major parties that they will not form any coalition or power sharing
agreement with the Greens. The Greens’ are openly hostile to the NSW mining sector. In particular, the
NSW Greens’ reckless and extreme policies towards the coal sector are a direct threat to the jobs of
over 20,000 coal miners and would cause serious damage to the entire NSW economy.
The NSW Greens’ clear policy is that the thermal coal industry - NSW’s most valuable export industry
and the supplier of fuel that generates 80% of the state’s electricity - should be completely phased out
over a 10-year period. Such a policy would cause the loss of around $15 billion in export income with
no replacement, tens of thousands of job losses in regional areas, the collapse of thousands of supplier
businesses and irreparably damaged relations with major trading partners such as Japan, which rely on
NSW thermal coal for their energy security.
Furthermore, the affordability and security of NSW’s electricity would be jeopardised as baseload power
is forced to shut down, driving up costs for consumers, leading to supply shortfalls impacting households
and businesses, and forcing major energy users and employers to relocate out of NSW.
Any type of coalition or power sharing agreement with the Greens would be economically and politically
reckless. No responsible political party should consider such an arrangement.
6 2019 NSW ELECTION POLICY PRIORITIES MANIFESTO2 Policy Commitments
2.1 Support exploration and mining investment in NSW
NSWMC is calling for an incoming government to:
a. Establish the Division of Resources and Geoscience as a standalone agency - the
minerals industry is the largest export industry in NSW, bringing in $19 billion in export
revenue and unpinning many regional economies throughout the State. The industry
deserves its own standalone agency that can drive a growth agenda and actively promote
investment in the industry and the benefits of the industry.
b. Develop a minerals strategy for NSW - NSW stands alone as the only major Australian
jurisdiction without an integrated government strategy to attract exploration and mining
investment and improve the operating environment for the industry. NSWMC is calling for
a NSW minerals strategy that identifies pre-competitive data priorities, programs to
improve the regulatory framework, promotion of the industry and ways of tracking
performance.
c. Provide long-term funding for the cooperative drilling program - government co-funding of
exploration drilling programs is a proven way to stimulate private exploration investment.
Nearly every Australian jurisdiction has some form of co-funded drilling program in place.
While the current Government introduced the first such program in NSW, there are
questions as to whether it will continue. The industry is calling for a long-term funding
commitment of $2 million per annum for the cooperative drilling program.
2.2 Avoid new regulatory costs and commit to independent scrutiny of
new regulatory proposals
The mining industry is heavily regulated. The regulatory burden and related cost of compliance has been
increasing as new requirements are added and red tape reduction efforts have limited effect.
Furthermore, the industry pays a range of levies, application fees, rental fees, licence fees, state taxes
and royalties that help fund regulation, some of which were introduced with no industry consultation.
The Independent Review of the NSW Regulatory Policy Framework, finalised in August 2017,
highlighted the need for greater rigour and independent scrutiny of policy and regulatory proposals.
NSWMC supports this view and seeks a commitment from potential incoming governments to:
a. Consult with industry on any new policy proposals
b. Introduce new measures to provide independent scrutiny of policy proposals including
third party cost-benefit analysis of their impact
c. Ensure environmental regulation is based on science, facts and evidence
d. Remove inequitable levies and taxes, streamline fees and levies, and fully account for
industry fees paid for service delivery
e. Commit to no increase in mining royalties
f. Limit any future industry fee and levy increases to CPI
2.3 Improve the planning assessment process – more investment and
more jobs
Investor confidence in the mining sector can be directly linked to uncertainty in the planning system.
Continuing to improve the planning regime and making a stronger and more certain decision-making
process must be a priority for the next NSW Government.
7 2019 NSW ELECTION POLICY PRIORITIES MANIFESTOIn 2014 the NSW Government made a commitment to halve the time it takes to approve major projects
in NSW. While this is a step in the right direction and there have been some improvements, more work
is needed to create a more efficient, certain and streamlined process.
NSWMC is seeking commitments to:
a. Continue to reduce major project assessment time frames, including for modifications -
While there have been some improvements in assessment time frames over the past 3
years, there are still actions which can further drive efficiency such as removal of
assessment duplication between the NSW and Commonwealth Governments, and
guaranteed referral and assessment times for agencies
b. Ensure decisions are based on science, facts and evidence and are free from political
interference - The assessment and decision-making process for mining projects should
be based on clear and certain policies, the best available scientific evidence and facts,
and should be transparent and free from any political interference
c. Provide more certainty on infrastructure contributions for mining projects - Mining projects
deliver significant benefits to local communities through local contributions. Reaching
agreement with a local council is often a protracted process with no clear set guiding
rules or criteria, resulting in disparate outcomes. An incoming government should
establish clear criteria for local contributions which are based on the impacts of the
project on the infrastructure and services provided by the council
2.4 A NSW energy strategy that delivers reliable electricity at least cost
With mining operations representing nine percent of electricity consumption in NSW, the industry has
felt the effects of the steep rise in electricity prices over recent years. Our sector depends on reliable
and affordable electricity to operate efficiently and to remain internationally competitive.
NSWMC is calling for potential incoming Governments to outline an electricity strategy for NSW that:
a. Focuses on delivering reliable and affordable energy. We are extremely concerned at the
lack of any commitment to deliver equivalent replacement generation capacity when the
Liddell Power Plant closes in 2022, and we predict significant energy supply disruption as
a result. Emissions from the national electricity market have been falling for the last
decade and will continue to do so over the coming decades as older plant reaches the
end of its operating life and is upgraded or replaced. The NSW Government must take
responsibility to ensure that the state’s electricity supply is secure as these changes take
place and is positioned to withstand events such as the early withdrawal of plant and the
effects of neighbouring State policies. The impact of the closure of the Liddell Power
Plant in 2022 is a potential energy policy disaster of which all parties have been
repeatedly and publicly warned. There will be no excuses for this policy failure.
b. Takes a technology neutral approach - A broad range of technologies will be needed to
deliver reliable electricity while reducing emissions at least cost. Technology-specific
policies such as subsidies and renewable energy targets should be avoided given their
impact on price volatility and grid instability.
c. Includes a strategy to make NSW carbon capture and storage ready - the scale of the
task to reduce carbon emissions from the economy should not be underestimated.
Carbon capture and storage is recognised by the International Energy Agency and the
IPCC as an essential part of the solution, not only for emissions from coal fired power
generation but from gas fired power generation and from industrial processes such as
cement, fertiliser and steel manufacturing. Programs such as Coal Innovation NSW must
be supported to ensure NSW is carbon capture and storage ready.
8 2019 NSW ELECTION POLICY PRIORITIES MANIFESTO2.5 Additional, sustainable funding for Resources for Regions
The Resources for Regions program is an important source of additional funding for mine-affected local
councils to invest in local infrastructure and complements the significant investment by mining
companies in in the form of Voluntary Planning Agreements, roads upgrades and direct investment in
local communities.
Despite mining’s significant contribution to NSW Government revenue, including royalties of $1.8 billion
last year, there has been a history of insufficient and inadequate investment by the NSW Government
in public infrastructure, facilities and services in mining communities.
While the Resources for Regions program has been a good first step in providing a much-needed source
of additional infrastructure funding to many regional mining communities, the amount and certainty of
funding has varied from year to year and it is important that any incoming government demonstrates
that it has a strong ongoing commitment to the program.
Mining communities deserve the certainty of a long-term, sustainable funding model from existing
revenue streams to support public infrastructure investment.
NSWMC seeks a commitment for a proper investigation of the merits of funding the Royalties for
Regions program from existing royalties with a guaranteed minimum of $60 million per annum.
2.6 Support for the Upper Hunter Mining Dialogue
The Upper Hunter Mining Dialogue was established in 2011 by the region’s miners in response to local
community concerns about infrastructure and services, mine rehabilitation, water and air quality.
The Dialogue is a collaborative initiative that has worked to understand community concerns and then
work together to develop solutions. Over the last seven years the Dialogue has brought together the
mining industry, other local industries, community members, and local and state government
representatives to discuss issues in a respectful and constructive way.
The Dialogue has contributed to improvements in the industry’s air quality management practices, a
more consistent and transparent reporting framework for mine water use, and a range of studies and
information sessions to provide better information and understanding of mine rehabilitation and mine
voids, air quality in the region and water quality in the Hunter River.
The participation of NSW State Government representatives in the Dialogue has been immensely
valuable for the local community. Government representatives have informed Dialogue participants on
related Government policy initiatives, contributed to discussions on various projects and have led
research on cattle grazing on rehabilitated mine land in collaboration with the community and industry.
The industry is committed to continuing the Dialogue and is investing significant resources to do so. To
ensure its continued success, the ongoing participation of Government representatives will be essential.
NSWMC seeks an incoming government’s commitment to the ongoing participation of relevant NSW
Government Departments and Agencies in the Dialogue process.
2.7 Support for indigenous school education programs
NSWMC and its members are proud supporters of the Clontarf Foundation and the Girls Academy, two
excellent community organisations working to engage indigenous students at school, improve
attendance, build self-esteem and improve employment prospects. The Clontarf Foundation has 26
academies helping boys in schools throughout NSW and the Girls Academy has 13 academies in NSW
schools.
The NSW Government’s $3.75 million commitment to the Clontarf Foundation in the 2017-18 State
Budget to expand their academies was welcome. These organisations have achieved remarkable
success and it is important that an incoming government works to establish a long-term funding
arrangement with these organisations.
9 2019 NSW ELECTION POLICY PRIORITIES MANIFESTOThis will enable them to leverage private sector and Commonwealth funding to continue to deliver these
worthy programs that provide long term socio-economic benefits to the NSW community.
2.8 Support industry focus on health and safety
The NSW mining industry operates to best practice standards on health and safety. The sector is also
responsible for initiatives that seek to proactively improve health and safety outcomes. These include
the Blueprint for Mental Health and Wellbeing and the Obesity Blueprint.
NSWMC has been a strong supporter and participant in the Mine Safety Advisory Council. Through this
body, our industry works with trade unions and the Resources Regulator to achieve improvements to
health and safety outcomes across the sector.
NSWMC seeks a commitment to this successful ‘tripartite’ approach through the Mine Safety Advisory
Council and to the ongoing improvement of industry health and safety performance through outcomes-
based regulation.
10 2019 NSW ELECTION POLICY PRIORITIES MANIFESTO4 Scorecard for Completion
Key Policy Principles YES/NO
1. If elected, will your government support a strong future for the NSW mining
sector?
2. If elected, will your government support coal mining jobs and the ongoing
role and contribution of the NSW coal sector?
3. If elected, will your government management decisions to avoid creating
any perception of sovereign risk issues in NSW?
4. If elected, will your government support regional mining communities,
including strengthening local economies?
5. Do you rule out any form of coalition or power-sharing agreement with the
NSW Greens?
TOTAL /5
Additional comments:
11 2019 NSW ELECTION POLICY PRIORITIES MANIFESTOKEY POLICY COMMITMENTS YES/NO
Support exploration and mining investment in NSW
1. Establish the Division of Resources and Geoscience as a standalone agency.
2. Develop and implement a Minerals Strategy for NSW.
3. Provide long-term funding for the Cooperative Drilling Program of $2m per year.
Protect the industry against increased regulatory costs
and commit to independent scrutiny of new regulatory proposals
4. Consult with industry on any new policy proposals likely to impact the sector.
5. Introduce measures that provide independent scrutiny of new policy proposals
including a third-party cost-benefit analysis of their likely impact.
6. Ensure environmental regulation is based on science, facts and evidence, free
from political interference
7. Review existing industry levies and taxes to identify opportunities for removal
and streamlining, and commit to full transparency and accountability on
expenditure of industry fees paid for service delivery.
8. Commit to no increase in mining royalties for the next term of Parliament.
9. Limit any future industry fee and levy increases to CPI.
Improve the planning assessment process
10. Commit to pursue opportunities for reduced planning assessment timeframes,
including for modifications, without compromising assessment standards.
11. Ensure planning outcomes are based on science, facts and evidence and that
project applications are fully and properly assessed on their merits, free from
political and activist interference.
12. Provide more certainty on infrastructure contributions for mining projects
including clear criteria for local contributions based on the impact of projects on
local infrastructure and services.
NSW energy strategy that delivers reliable electricity at least cost
13. Ensure that NSW has reliable and affordable energy with a clear and
transparent plan that protects energy users.
14. Take a technology-neutral approach to energy generation where all potential
energy sources compete on equal terms without subsidies, targets and
mandates.
15. Recognise the need for carbon capture and storage to reduce NSW emissions,
and develop a carbon capture and storage strategy for NSW.
12 2019 NSW ELECTION POLICY PRIORITIES MANIFESTOAdditional, sustainable funding for Resources for Regions
16. Commit to a minimum of $60m per year for Resources for Regions funding
17. Properly investigate funding Resources for Regions from existing royalty
revenue
Support for the Upper Hunter Mining Dialogue
18. Commit to ensure that relevant NSW Government governments and agencies
continue to participate in the Upper Hunter Mining Dialogue
Support for Indigenous school education programs
19. Continue to support the Clontarf Foundation and provide support for similar
initiatives that deliver improved school retention outcomes for indigenous
students
Support industry focus on health and safety
20. Commit to the tripartite approach through the Mine Safety Advisory Council and
to improving health and safety performance through outcomes-based
regulation.
TOTAL /20
PLEASE RETURN THIS COMPLETED SCORECARD BY FRIDAY 28 FEBRUARY TO:
NSW MINERALS COUNCIL
ATT: STEPHEN GALILEE
PO BOX H367
AUSTRALIA SQUARE NSW 1215
OR VIA EMAIL – sgalilee@nswmining.com.au
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