The budget comes on the heels of the controversial resignation of the former minister for mineral resources, Ian Macdonald, who staunchly defended the industry from attacks by the Greens and was receptive to complaints about the proposed resources super-profits tax.

The budget revealed the mining industry’s contribution to the state’s bottom line will surge by 85% from an estimated $953 million in 2009-10 to $1.77 billion in 2010-11.

Newly appointed Minister for Mineral Resources Paul McLeay – who is also the Minister for Ports and Waterways – said the investment reflected the government’s commitment to building a “sustainable, adaptive and productive minerals industry”.

He said the minerals industry was worth more than $14 billion annually to NSW and provided $1.8 billion in royalties.

NSW Minerals Council chief executive Nikki Williams said mining was proving to be the “engine room of the NSW economy”, driving the state budget back into the black.

“State revenue is expected to grow by $2.2 billion in 2010-11 and $815 million of that will come from mining. Yet again the minerals industry is punching above its weight,” she said.

“This underlines the importance of controlling the cost of doing business in NSW.

“We welcome the relative cost stability in NSW at a time when the federal government is looking to impose its resource super-profits tax on an industry it appears not to understand.”

Ten projects focused on low-emissions or clean coal technologies have been granted $13 million in funding from the state government's Clean Coal Fund.

The government will commit a further $21.5 million for the development of clean coal technology. This funding will come out of the $100 million Clean Coal Fund and support such projects as the carbon capture and storage demonstration project on the Central Coast.

Williams said the $21.5 million from the Clean Coal Fund would help to develop low-emissions coal technologies and complement the industry’s $1 billion commitment to research and development.

“The coal industry is working on the rapid demonstration and deployment of low-emissions technologies, such as carbon capture and storage,” she said.

“We applaud the NSW government’s commitment to the Clean Coal Fund and the 10 new projects it is supporting. This is another important step towards a low-emissions energy future.”

The NSW government will also provide funding of $5.5 million towards the ongoing New Frontiers exploration initiative.

“This includes the funding of pre-competitive geophysical surveys, data compilation, geological mapping, data interpretation and data delivery,” McLeay said.

“Currently an airborne geophysical survey is being conducted in southern NSW from the Snowy Mountains to the coast, which will provide a better understanding of the geology of the area.”

Other major initiatives for 2010-11 are $26.6 million for mine safety, including funding for implementation of health management systems, regular site assessments, accident investigations, technical assessments, maintaining oversight of the equipment used in NSW mines and for the Mine Safety Advisory Council.

The government will allocate $2.2 million for a mineral resources business and technology system and $2 million for derelict minesite rehabilitation in the state.

On the infrastructure front, the government has allocated $8 million to Newcastle Port Corporation projects.

A total of $1.7 million will be used for new technology systems, including the vessel traffic information system, CCTV security at Carrington and the organisation’s information management system.

The government will also put $1.95 million towards the replacement of the pilot cutter EC Close, which is used for the effective transfer of marine pilots and other port operations.

It will spend $500,000 to complete the $2.55 million channel refurbishment for the upcoming cruise season and $510,000 for the realignment of rail lines at Mayfield to provide improved access to new berth facilities at Mayfield No. 4.

The government will also spend almost $3 million on minor works and projects around Newcastle Port during 2010-11.

The wholly government-owned Port Kembla Port Corporation will invest $23.8 million in improving the port, including developing the Outer Harbour.

The project to reclaim an initial 8-10 hectares of land will begin later this year.

Port Kembla Port Corporation’s investments will include $10 million on the Outer Harbour reclamation, $10 million for the establishment of a new permanent tug berth facility, $2.5 million on rail upgrades and $500,000 on the Inner Harbour Tom Thumb Bridge.