Mineral exploration in NSW

Overview

Cadia open cut mine

Mineral exploration in NSW

NSW is the largest state in Australia in terms of population and contribution to the national economy.

The value of production of the NSW mining industry (including coal) exceeded AUD$26.3 billion in 2019–2020. The industry directly employed over 30,500 people as at end June 2020 and around 122,000 people indirectly through the provision of both mine and non-mine related services (source: Mining, Exploration and Geoscience royalty data; Coal Services Pty Ltd for coal employment) and is the state's biggest export earner.

Image of a man standing beside the Holtermann Gold nugget - for reference the nugget is equal in height to the mans shoulders and twice as wide as the man

NSW also has a highly developed mineral processing sector, producing iron and steel, aluminium and lead/zinc for domestic and export markets.

The NSW minerals industry makes a major contribution to the state's economy in terms of business activity, investment, regional development, job creation and export revenue.

The industry includes a range of commercial operations based on the discovery, development, management and utilisation of mineral resources. It includes mineral and petroleum exploration, mining and beneficiation and value-added processing (smelting and refining).

NSW is a low-cost world producer of coal, gold, lead/zinc, mineral sands and gemstones. In 2019–20 there were 12 metallic, two mineral sands and 23 industrial mineral mines operating.

As of December 2020, there were 1441 mineral titles (excluding coal) – 892 prospecting titles and 549 mining titles.

Coal exploration in NSW

Legislation was enacted in 2015 to allow strategic oversight of the release of new coal exploration leases. Subject to Ministerial consent, exploration leases can only be granted via two processes; (1) the Operational Allocation framework or (2) the Strategic Release Framework.

The Operational Allocation framework supports existing coal miners and explorers in NSW. It enables the NSW community and industry to maximise the value and longevity of existing mining projects. Subject to strict criteria, under the framework, current coal titleholders can apply for an exploration title to support better mine design, extend mine life and avoid sterilisation of resources.

The NSW Strategic Release Framework for Coal and Petroleum Exploration (the Framework) allows for the controlled, strategic release and competitive allocation of coal and petroleum prospecting titles in New South Wales. It delivers greater transparency and control over the release of coal and petroleum exploration licences. It sets out a competitive process for achieving value for the economy and adequate returns for state owned resources.

The Framework recognises there are competing uses for land and seeks to balance these interests, ensuring areas can be released for exploration only after environmental, social and economic factors have been considered. The process also acknowledges that the community should have an opportunity to identify the values and issues related to each area proposed for release. This supports the safe and sustainable development of resources under a process that balances the needs of the community, the economy and the environment.

A key part of the process is the Preliminary Regional Issues Assessment (PRIA). The PRIA is an initial assessment of social, environmental and economic matters relating to areas that could be released for coal or petroleum exploration. It involves engaging with interested and potentially impacted stakeholders to identify issues for consideration.

The implementation of the framework is overseen by the Advisory Body for Strategic Release (Advisory Body). The Advisory Body is an inter-agency group, with an independent Chair, that makes recommendations to the Minister responsible for resources on areas that are suitable for release (either wholly or in part) for coal or petroleum exploration.

At February 2021, the total number of coal titles in NSW was 563, comprising 154 exploration titles, 4 assessment leases and 405 mining leases.

Major coal resources of NSW are in the Sydney and Gunnedah basins. The Hunter Coalfield of the Sydney Basin is the largest coal producing area in NSW, containing significant reserves of export quality low-ash, high-energy thermal coals.

The NSW coal industry plays a significant role in the state's economy. The industry provided $1.5 billion (AUD) in royalties in FY 2019/20 and coal is the state's single largest export in value terms. The coal mining industry directly employs around 22,700 people in 36 operating mines and indirectly employs around 90,000 people.

Petroleum exploration in NSW

Image of a drill rig in the field

In November 2014, the NSW Government released its Gas Plan – a clear, strategic framework to deliver world's best practice standards and regulation for the Coal Seam Gas (CSG) and petroleum industries, while securing vital gas supplies for NSW.

In December 2015, legislation was enacted to allow for 'Competitive Selection' for petroleum exploration and special prospecting titles under the Petroleum (Onshore) Act 1991. This Strategic Release Framework for Coal and Petroleum Exploration (the Framework) allows for the controlled, strategic release and competitive allocation of coal and petroleum prospecting titles in New South Wales. It delivers greater transparency and control over the release of coal and petroleum exploration licences. It sets out a competitive process for achieving value for the economy and adequate returns for state owned resources.

The Framework recognises there are competing uses for land and seeks to balance these interests, ensuring areas can be released for exploration only after environmental, social and economic factors have been considered. The process also acknowledges that the community should have an opportunity to identify the values and issues related to each area proposed for release. This supports the safe and sustainable development of resources under a process that balances the needs of the community, the economy and the environment.

As of December 2020, the total number of onshore petroleum titles in NSW was 19, including 12 petroleum exploration licences (PELs), six petroleum production leases (PPLs) and one petroleum assessment lease (PAL). There are also four PPL applications.


Some of the attractions of exploring in New South Wales are:

World class mineral deposits

  • Broken Hill Ag–Pb–Zn
  • Cadia–Ridgeway Cu–Au
  • Cobar Basin Pb–Zn–Cu–Au
  • Cowal Project Au–Cu
  • Murray Basin mineral sands

Mineral exploration opportunities

  • Proterozoic Ag–Pb–Zn, Cu–Au
  • Palaeozoic sedex Pb–Zn, Cu–Au
  • Palaeozoic porphyry Cu–Au
  • Palaeozoic VHMS
  • Palaeozoic Sn, Sb and REE
  • Iron oxide
  • Mineral sands

Coal and petroleum exploration

  • NSW is a controlled release area for both coal and petroleum, and new areas for exploration will only be released through the Strategic Release Framework, after stakeholder and community consultation and careful consideration of environmental, social and economic factors
  • large less explored sedimentary basins cover over 60 per cent of NSW
  • several infra-basins host thick Palaeozoic to Mesozoic sequences with producing analogues in Queensland and South Australia
  • regionally extensive/multi-level petroleum systems
  • potential for conventional deep basin-centred gas, tight sand gas, shale gas and sub-thrust plays.

Established mining and processing industry

  • established, experienced workforce and peripheral support base
  • processing facilities include Port Kembla and Broken Hill.

Well-developed infrastructure

  • extensive rail network
  • large port facilities (Newcastle, Sydney, Port Kembla)
  • existing network of pipelines that can readily connect prospective basins to markets
  • guaranteed third party access to pipelines.

A major regional economy

  • NSW is the largest domestic market in Australia
  • established access to Asian markets
  • largest energy market in Australia within industrial, transport, domestic and commercial areas

Effective government and good access to land

  • stable legislation and policy environment
  • modern mining legislation
  • efficient title approval processes
  • deregulation of energy markets in Australia

Rich geoscience information coverage

Image of truck based drill rig in the field