The Berejiklian government says NSW will play a crucial role in meeting the growing global demand for traditional and emerging metals vital to the development of new-generation technologies.
Regional NSW has been identified as "rich with untapped resources" in a vast area stretching from Bega to Albury and north to Dubbo and Bourke, NSW Deputy Premier John Barilaro said.
Exploration drilling at the Glencore CSA copper mine outside Cobar. Credit: Dominic Lorrimer
Mr Barilaro said there was worldwide demand for metals found in NSW including cobalt, copper and scandium, an emerging metal that could be a major contributor to the aerospace industry.
The minerals are also essential for the manufacture of "everyday modern technologies" such as fibre-optic cables, rechargeable batteries and smartphones.
Mr Barilaro, who also has responsibility for resources, said there was "huge potential for future discoveries" to create new jobs and deliver economic benefits to regional NSW.
The latest Australian Bureau of Statistics data revealed exploration expenditure across NSW in 2019 was $296.8 million, almost $50 million higher than the previous record expenditure in 2018.
Recent exploration drilling in the Central West has shown that NSW has the potential for major new copper discoveries, important for the manufacture of electric cars.
To support the development of emerging resources, the state government will fund 22 mineral exploration projects as part of its New Frontiers Cooperative Drilling grants program.
The exploration projects were selected from a record 63 applications to program, with each to be funded 50 per cent of their per metre drilling rate costs, up to a maximum of $200,000 per project.
"Earlier funding rounds led to the discovery of signs of significant copper and gold mineralisation 37 kilometres north of West Wyalong, and we’re confident of similar success again this time," Mr Barilaro said.
These grants are a direct investment in the NSW minerals industry and a direct boost to regional mining towns.
NSW Deputy Premier John Barilaro
Mr Barilaro said the majority of projects would look for copper and gold. But there would also be exploration for other minerals including cobalt, platinum, nickel, silver, lead, zinc, tin and tungsten.
"These grants are a direct investment in the NSW minerals industry and a direct boost to regional mining towns like Cobar, Mount Hope, Dubbo and Molong, which depend on exploration and mining for their well-paid jobs and job security,” Mr Barilaro said.
"With NSW set to become a key player in the global supply of the kinds of minerals needed
for high-tech sectors like communications, manufacturing, defence and aerospace, we’re investing to find new reserves and support our vibrant regional communities into the future."
Mr Barilaro said there was also the potential for the world’s first scandium-only mine near Nyngan which would more than double global scandium supply.
Scandium is sought after by the defence and aerospace industries due to its ability to create lightweight and strong alloys with aluminium.
The drilling grants program is part of the NSW Minerals Strategy to promote investment in the minerals industry in regional NSW.
The program aims to "support the long-term sustainability of the NSW resources sector" by
encouraging mineral exploration and discovery, particularly drilling programs that target under-explored areas in the state, or that test new geological ideas and models.