The controversial decision by the court – which is being appealed by both the company and NSW Planning Minister Brad Hazzard – has been interpreted by the industry as making the state an unsafe place to invest despite achieving the necessary planning approvals.

The $5.3 million will go to the ongoing work of the Planning Assessment Commission and Joint Regional Planning Panels.

The independent expert panels make decisions on state and regionally significant development proposals, taking the politics out of planning decisions across the state.

“This latest funding will continue to underpin this robust and independent system during the transition to a new planning system,” Hazzard said.

The NSW government is seeking to mitigate the impact of investment in the state’s mining industry after the Land and Environment Court blocked the proposed Warkworth and Boral’s Berrima Medway colliery extension projects.

Hazzard has joined Rio subsidiary Coal & Allied in appealing the court’s decision to knock back the Warkworth expansion, despite it receiving the department’s director-general approval.

A statement from the Department of Planning states: “The original decision in the Land and Environment Court may have implications that are broader than this particular development, in particular for the assessment of other mining projects.”

Hazzard also lodged an appeal against the Land and Environment Court ruling that refused project approval for a $4 million mine expansion to 460,000 tonnes per annum.

NSW Minerals Council chief executive officer Stephen Galilee said policies supporting mining would be needed if the government was to achieve forecast increases in mining royalty revenues of nearly 16% in 2013-14 and nearly 13% in the four years to 2016-17.

“NSW miners are dealing with a number of challenges, chiefly the need for a new state planning system that delivers certainty for valuable mining projects,” he said.

“The current planning system review is an opportunity for the NSW government to deliver a positive outcome for all significant industries across the economy and importantly to support mining and the jobs it creates.

“We welcome the additional funding of $5.3 million for the Planning Assessment Commission and would hope that this will help provide more certainty for NSW mining with regard to planning.”

A deficit of $329 million is forecast in 2013-14, with a return to surplus expected in 2014-15 in the budget – which was handed down by state Treasurer Mike Baird yesterday.

Galilee said the budget was an important step in bringing the state’s finances under control and made necessary investments in the coal-rich Hunter region.

“This is a responsible budget,” he said.

“The treasurer should be commended for restoring the fiscal fundamentals to NSW, including reductions in spending growth and debt levels.

“The government is also to be commended for keeping its commitment on the supplementary coal royalties which has been revised to zero due to lower Commonwealth mining tax estimates.”

Pre-exploration data

To promote NSW as an attractive investment destination, the government is embarking on a $28 million four-year expansion of its pre-exploration data collection initiative to attract exploration to the state.

Resources Minister Chris Hartcher said the annual expansion of the New Frontiers exploration program would underpin the continuing expansion of a strong and robust resources industry through ongoing exploration.

“Our vision is for a vibrant and prosperous mining industry that continues to deliver jobs and investment to rural and regional NSW, whilst ensuring the protection of our valuable agricultural land and water resources,” Hartcher said.

“The resource sector’s importance to the state’s economy is well known and the government’s expansion of the pre-exploration initiative will further investment in our resources and stimulate future exploration.

“Government geoscience underpins private exploration and leads to new discoveries, crucial to ensuring that the NSW resources sector continues to expand and support regional employment growth.”

He said the NSW government would continue to invest more than $13 million in compliance measures to support best-practice regulatory regimes for the mining and gas industries in line with the growing volume of minerals and petroleum activities being carried out in NSW.

Despite this, the industry is disappointed in the deferred abolition of intergovernmental agreement taxes, which will impose a $1.5 billion tax burden on businesses across the NSW economy, including NSW mining, according to Galilee.

“The budget papers confirm that NSW miners contributed nearly $1.5 billion in mining royalties to the state economy in 2012-13,” he said.

“We therefore warmly welcome the government’s commitment of $120 million for mining communities as part of Resources for Regions.

“We encourage the government to ensure that the funding is allocated to mining areas in need of critical public infrastructure improvement.

“The two tranches of funding of $40 million and $80 million and a firm timeline on funding announcements provide a degree of certainty for local communities as they apply for investment.”

There was still $60 million to be allocated as part of the Hunter Infrastructure Investment Fund.

“The Upper Hunter in particular needs direct investment in public infrastructure,” Galilee said.

“We are encouraging the government to ensure that communities like Singleton and Muswellbrook benefit from direct investment as part of the HIIF as well as Resources for Regions.”

The government is expected to raise $500 million by selling and leasing back the Port of Newcastle, as it has done with the Port of Botany and Port Kembla.

“With regard to the leasing of the Newcastle Port, as the major user and a key stakeholder we will be paying close attention to the government’s proposed process and leasing model and would expect to be fully engaged throughout the lease process,” Galilee said.

“Obviously the economic viability of leasing the Newcastle Port would not be possible without a strong coal industry.

“The $19 million for research and development of low emissions technology is welcomed, as is the $8.5 million for the New Frontiers pre-exploration data collection program.

“However the bulk of this New Frontiers funding is provided by charges on industry and not the government.”