The New South Wales government has announced the beneficiaries of its critical minerals royalty deferral scheme, naming two major critical minerals operations will be the first to benefit from the program.
Under the AU$250 million scheme, Iluka Resources’ Balranald project in the Murray Basin and Sunrise Energy Metals’ Syerston scandium project in the Central West are set to unlock a combined AU$776 million in capital investment.
Designed to ease the cash flow burden on mining companies during high-cost initial development phases, the opt-in initiative defers royalty payments for five years.
However, project owners are still contractually required to pay all deferred royalties in full once operations mature.
The program is in response to long-standing industry feedback regarding intense early investment barriers, a sentiment backed by Association of Mining and Exploration Companies (AMEC) CEO Warren Pearce.
“For critical minerals projects, improving cash flow during the early stages of production can make the difference between a project proceeding or remaining on the drawing board,” Pearce said.
Currently being commissioned, Iluka’s Balranald mine will utilise innovative remote underground technology to extract zircon, rutile, ilmenite, and rare earths for domestic processing. Over its lifetime, the operation is forecast to support 270 ongoing regional jobs and generate AU$153 million in royalties.
Meanwhile, Sunrise Energy Metals’ Syerston project is scheduled to begin construction later this year, targeting mid-2028 for its first production of scandium oxide.
Deemed strategically vital under the US-Australia critical minerals partnership, the project previously secured a US$67 million debt financing letter of interest from the U.S. Export-Import Bank. It is projected to create 59 ongoing jobs and yield AU$113 million in state royalties.
Minister for Natural Resources Courtney Houssos emphasised that the scheme is central to securing the state’s economic future.
“By supporting projects through the high-cost early stages of development, we are helping unlock investment, create regional jobs and strengthen supply chains that are critical to the future global economy,” Houssos said.
“Mining has a long history in NSW and initiatives like the critical minerals royalty deferral scheme show that it also has a bright future.”
