Future of Minerals in NSWREPORT SUMMARY

FUTURE OF MINERALS IN NSW SUMMARY

The New South Wales (NSW) resources sector is vibrant, with world-class deposits, a highly skilled workforce and a well-earned reputation for safe, responsible and innovative mining practices.

The NSW Government strongly supports the state’s minerals industry and the responsible development of its mineral resources. Our goal is to make NSW the number one state for new exploration and resources investment in Australia.

The Future of Minerals in NSW Report is intended to inform investors, project developers, miners and explorers of global consumer trends and technology development that will shape the supply and demand for minerals, especially high-tech and critical minerals. The report outlines how NSW is positioning itself to be a supplier of raw materials for a high-tech future underpinned by our highly prospective natural resource endowment, supported by world-class geoscientific datasets and a robust regulatory framework.

Consistent with the Australian Government’s Critical Minerals Strategy and associated investment incentives, the NSW Government has identified key areas for investment in emerging and traditional metals.

Macro trendsOver the next 40 years, global demand for metals and other key raw materials is expected to surge for the following reasons:

• a growing middle class – the world’s population is forecast to reach 8.5 billion by 2030, 9.7 billion by 2050 and 11.2 billion by 2100. Over the same period, average living standards are expected to rise, creating a growing global middle class. This will drive additional demand for minerals through increased consumer spending on manufactured products and housing.

• technological development – much of the advancement in material science involves combining multiple elements with unique properties into superior compound substances. This is leading to increased demand for a greater variety of minerals to produce a growing range of compounds.

• the energy transition – the shift to lower carbon economies will accelerate the deployment of wind, solar and battery technologies. The manufacture of renewable technologies requires a significant amount of mined minerals. It is expected aluminium, copper, silver, bauxite, iron, lead, rare earth elements and other minerals will see significant growth in demand as this transition occurs.

Figure 1: Historical and forecast of the world’s middle class (OECD 2019)1

Estimates of the size of the global middle class, percentage of the world population (left axis) and headcount (right axis), 1950-2030

% of global population

Headcount (billions)

Global population

Global middle class percentage

Global middle class headcount

1951 1957 1963 1969 1975 1981 1987 1993 1999 2005 2011 2017 2023 2029

100

90

80

70

60

50

40

30

20

10

0

9

8

7

6

5

4

3

2

1

0

1. H. Kharas 2017. The unprecedented expansion of the global middle class an update, Brookings Institution. https://www.brookings.edu/wp-content/uploads/2017/02/

global_20170228_global-middle-class.pdf 2

https://www.brookings.edu/wp-content/uploads/2017/02/global_20170228_global-middle-class.pdfhttps://www.brookings.edu/wp-content/uploads/2017/02/global_20170228_global-middle-class.pdf

FUTURE OF MINERALS IN NSW SUMMARY

Figure 2: Metals used in components a jet engine2

FanTitanium alloy

Low pressure turbineNickel based superalloys

High pressure compressorTitanium or nickel alloys

Low pressure compressorTitanium or aluminium alloy

Combustion chamber and high pressure turbineNickel based superalloys with a thermal barrier coating such as yttrium stabilised zirconia

Figure 3: Typical raw materials required for a 3MW direct drive wind turbine

3 MW direct drive turbine1,100 t concrete (77 t of coal + 635 t limestone)

304 t steel (234 t coking coal + 456 t iron ore)

4.3 t copper

2.7 t aluminium

1.8 t rare earths

Zinc and molybdenum

2. High-tech metal resources of New South Wales, Geological Survey of New South Wales https://www.resourcesandgeoscience.nsw.gov.au/miners-and-explorers/geoscience-information/products-and-data/high-tech-metal-resources-of-nsw 3

https://www.resourcesandgeoscience.nsw.gov.au/miners-and-explorers/geoscience-information/products-and-data/high-tech-metal-resources-of-nswhttps://www.resourcesandgeoscience.nsw.gov.au/miners-and-explorers/geoscience-information/products-and-data/high-tech-metal-resources-of-nsw

FUTURE OF MINERALS IN NSW SUMMARY

NSW mineral potential NSW has a long history of mining stretching back for almost two centuries. The state hosts the giant Broken Hill silver-lead-zinc and Cadia Valley copper-gold deposits, in addition to several other significant base and precious metal mines with ongoing exploration. As well as its traditional metals of gold, copper, lead, silver and zinc, the state has proven prospectivity for other traditional metals such as tin, antimony, aluminium, nickel, molybdenum and platinum group metals. The potential for emerging metals in NSW has already been recognised, with several projects in development to produce rare earth elements, cobalt, scandium and titanium.

Detailed information about the geology and mineral potential of NSW is available free of charge via the MinView online data portal and explained in more detail in the Future of Minerals in NSW Report.

Potential to meet global demandThere is growing global demand for both traditional metals like gold and copper, as well as emerging high-tech metals such as rare earth elements, scandium, cobalt and platinum group elements. NSW is prospective for these metals and is well-placed to become a key supplier in the global minerals industry.

Figure 4: Major geological provinces and operating mines in NSW

Canberra

Sydney

NewcastleMaitland

Tibooburra

Port Macquarie

Wollongong

Ballina

Tweed Heads

KempseyTamworth

Goulburn

Dubbo

Albury

Bathurst

Wagga Wagga

West Wyalong

Scone

Moree

Wentworth

Hay

Nyngan

Bourke

Inverell

Wilcannia

Grafton

Orange

Bega

Batemans Bay

0 100 200 300

Reference

Gold

Copper

Copper-Gold

Mineral sands

Copper-Gold-Silver-Lead-Zinc

Silver-Lead-Zinc

Q U E E N S L A N D

S O U T H PA C I F I CO C E A N

V I C T O R I A

S O U T H A U S T R A L I A

EndeavorCSA

The Peak

Hera

Northparkes

CowalCadia

Tomingley

Tritton

Fifield/Nyngan beltDelamerianOrogen

ThomsonOrogen

CurnamonaProvince

RaspBroken Hill

Pinnacles

Gingko

Snapper

Murray Basin

LachlanOrogen

Cobar Basin

New EnglandOrogen

MacquarieArc

Traditional metals Emerging metals• Copper• Gold• Silver• Lead• Zinc• Aluminum

• Nickel• Platinum Group Elements• Antinomy • Molybdenum• Tin

• Cobalt• Scandium• REE• Titanium

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FUTURE OF MINERALS IN NSW SUMMARY

Exploration opportunities in NSWDiverse geology and a broad variety of minerals makes NSW an ‘all-rounder’ for mineral resources in Australia and globally. Despite its significant prospectivity, most of the state remains under-explored or unexplored.

Ore deposits and mineral prospectivity across NSW extend both at depth and under younger cover rock sequences. However, almost all historical exploration in the state has been confined to areas where prospective geology is exposed at the surface. The majority of known metallic mineral occurrences in NSW have been discovered in areas of exposed prospective geology or shallow cover (

FUTURE OF MINERALS IN NSW SUMMARY

Advantages of investing in NSW minerals exploration and mining Mining investment not only depends on mineral endowment but on access to infrastructure, reliable utilities and a clear development process. Australia, and specifically NSW, offers major advantages that make it an attractive destination for mining investment.

Australia has sustained an unprecedented period of economic growth since 1991. NSW is the largest economy in Australia and the state’s strong economic performance in recent times has bolstered this position. This recent improvement is, in part, due to strong infrastructure investment, especially in regional NSW.

By participating in MinEx Cooperative Research Centre (MinEx CRC) activities, the NSW Government is expanding its geoscientific knowledge to realise the untapped potential for minerals in NSW.

Domestic and international explorers have already recognised the strong mineral potential of NSW. As a result, there is a pipeline of mineral projects in development ready for investment.

NSW has modern mining legislation, combining responsible development standards with efficient administration services. Processing times are measured and reported against committed service delivery standards.

Community engagement is central to the development approval and resource titles application processes in NSW. This ensures that mining proponents can adjust proposals to mitigate impacts on local communities and enhance community benefits as part of the mine project approval process.

NSW is a leader in innovative mining practices. The state ensures the environmentally responsible discovery and extraction of minerals. To meet high standards for environmental protection and safety, the NSW mining industry is supported by innovative businesses in the mining equipment, technology and services sector.

The commitment of the NSW Government to balance economic, social and environmental interests in developing mineral resources puts the NSW minerals industry in a strong position to comply with socially responsible sourcing initiatives and standards.

The NSW Government offers a range of services to assist mineral explorers and miners• A recently published online prospectus provides a ‘one-stop-shop’ linking to products and services available to

explorers and mine developers to help them understand the investment opportunities in NSW. To view the online prospectus visit resourcesandgeoscience.nsw.gov.au/onlineprospectus

• The Geological Survey of NSW (GSNSW) currently stores 1.5 million metres of drillcore representing the most informative one per cent of all samples taken by industry and makes them available to inspect by appointment.

• Through its DiGS® online archive, GSNSW provides access to over 140,000 non-confidential reports and other important mineral and exploration documentary material such as exploration reports, departmental reports, maps and GSNSW publications dating back to 1875. To view the DiGS online archive visit search.geoscience.nsw.gov.au

• Through the MinView online data portal, GSNSW provides a comprehensive collection of free geological, geophysical, geochemical and mineral occurrence data. Downloads include the NSW Statewide Seamless Geology map – one of the most complex geodata sets ever compiled and released worldwide. Access MinView at minview.geoscience.nsw.gov.au

• Through its Cooperative Drilling grants program, the NSW Government provides direct financial support to mineral exploration in underexplored areas of the state. The most recent round of Cooperative Drilling, which was open for application in late 2019, offered $2 million in grants to reimburse successful applicants 50 per cent of direct drilling costs, up to a maximum of $200,000 per exploration program.

• Strong economy• Regional development

programs for renewable energy and infrastructure

• Mineral potential with world class deposits

• Word-class geoscientific data

• A pipeline of projects ready for investment

• Low sovereign risk• Robust regulation• Environmental and social

responsibility

• Innovative METS sector

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https://www.resourcesandgeoscience.nsw.gov.au/investors/online-prospectushttps://search.geoscience.nsw.gov.auhttps://minview.geoscience.nsw.gov.au

FUTURE OF MINERALS IN NSW SUMMARY

The NSW Government recently completed the largest ever

airborne electromagnetic survey by area in the state’s

history searching for minerals as part of the MinEx CRC National Drilling Initiative

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Download the full Future of Minerals in NSW Report at   resourcesandgeoscience.nsw.gov.au/future-of-minerals or scan the QR code

JN0097 0220

© State of New South Wales through Department of Planning, Industry and Environment 2020. You may copy, distribute, display, download and otherwise freely deal with this publication for any purpose, provided that you attribute the Department of Planning, Industry and Environment as the owner. However, you must obtain permission if you wish to charge others for access to the publication (other than at cost); include the publication in advertising or a product for sale; modify the publication; or republish the publication on a website. You may freely link to the publication on a departmental website.

Disclaimer: The information contained in this publication is based on knowledge and understanding at the time of writing ([March 2020) and may not be accurate, current or complete. The State of New South Wales (including the NSW Department of Planning, Industry and Environment), the author and the publisher take no responsibility, and will accept no liability, for the accuracy, currency, reliability or correctness of any information included in the document (including material provided by third parties). Readers should make their own inquiries and rely on their own advice when making decisions related to material contained in this publication.

https://www.resourcesandgeoscience.nsw.gov.au/investors/online-prospectus/nsw-minerals-potential/future-of-minerals

CoverPage 2 Intro, Macro trends Figure 1Page 3 Jet engine, wind turbinePage 4 Mineral potentialPage 5 Exploration opportunities in NSWPage 6 Advantages of investing in NSWPage 7 Airborne electromagnetic surveyBack page Download the full Future of Minerals in NSW Report