Hogsback on NSW election

HOGSBACK reckons mining – and more specifically coal – is going to be the New South Wales government’s new ATM. The government should now realise which side its bread is buttered on and stop relying on stamp duty from the now fading property boom to funds its expensive infrastructure program.
Hogsback on NSW election Hogsback on NSW election Hogsback on NSW election Hogsback on NSW election Hogsback on NSW election
There is a state election coming in March and politicians are starting to make more promises to get themselves re-elected.
 
This of course needs to be paid for from taxes and royalties. Coal is NSW's biggest export so it will be now lifting most of this burden.
 
Looking to the future, the state government should see the opportunity that mining can deliver to NSW.    
 
There are now 25 resources projects in the NSW pipeline, which include new projects and extensions and modifications of existing operations.
 
This equates to almost $11 billion in capital investment in NSW, driving economic activity across the state, including in regional areas and creating or maintaining over 13,000 direct construction and operation jobs along with tens of thousands more jobs in businesses that support the mines.
 
From 13 of the 25 projects, over $2.6 billion in royalties will be paid to NSW, NSW Minerals Council CEO Stephen Galilee said.
 
"These 25 projects represent significant potential opportunities for NSW. These and more projects are needed to ensure NSW has the future production capacity to meet forecast demand," he said.
 
In the Hunter, nine projects in the pipeline would deliver over $1.5 billion in investment and maintain or create over 3,400  jobs for the region.
 
In the Illawarra, four projects in the pipeline would deliver over $870 million in investment and maintain or create nearly 1,700 jobs for the region.
 
Two projects in the Gunnedah region would secure over $1.5 billion in investment and maintain or create over 2,100 jobs.
 
Whitehaven Coal is in the box seat in the Gunnedah Basin, with its Narrabri and Maules Creek project but it is now seeking to expand its Vickery project and is planning to capitalize on Asia's demand for NSW's high efficiency low emission coal.   
 
"In terms of coal, new mining projects will be essential if NSW is to meet the growing demand for high quality coal in Southeast Asia.  The latest research from the independent International Energy Agency estimates that while global growth in coal demand remains steady, growth in demand for coal in the Asia Pacific will increase by 492 mtce (million tonnes of coal equivalent) by 2040," Galilee said. 
 
Whitehaven Coal will benefit from a "flight to quality" as power stations in the region increasingly source high efficiency low emission coal from its mines, according to chairman Mark Vaile.
 
The company is making decisions about the coal it produces based on an assessment of the impact of climate change on the coal market,  he said.
 
Hogsback reckons that NSW's future looks pretty bright as long as its government recognizes the impact of coal and mining on its future prosperity.   
 
 
 

 

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