TWO MAJOR NSW CRITICAL MINERALS PROJECTS TO BENEFIT FROM AUSTRALIA-FIRST ROYALTY DEFERRAL SCHEME
Courtney Houssos
Minister for Finance
Minister for Domestic Manufacturing and Government Procurement
Minister for Natural Resources
Saturday, 4 July 2026
The Minns Labor Government’s critical minerals royalty deferral scheme will support two major projects as part of a $250 million push to boost global investment into the state.
Together, Iluka Resources’ Balranald Project in the Murray Basin and Sunrise Energy Metals’ Syerston Scandium Project in the Central West are set to unlock $776 million in capital investment.
They are the first two projects to take up the royalty deferral scheme, the first program of its kind in Australia designed to stimulate production of critical minerals mines.
The Balranald Project is currently being commissioned. Construction on the Syerston Scandium Project is expected to commence in the second half of 2026, with production starting mid-2028. Once operational, these two projects will create hundreds of jobs across regional NSW.
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The royalty deferral scheme was announced by the Minns Labor Government as part of the Critical Minerals and High-Tech Metals Strategy launched in October 2024.
The $250 million program is an opt-in initiative which eases the cash flow burden on critical minerals projects during its important early stages, freeing up resources for extraction, production and processing. Under the scheme, royalties are deferred for five years but still need to be paid in full by the mine’s owner.
The royalty deferral scheme responds directly to industry feedback about the high initial investment costs of new critical minerals mines and the need to attract investment and enhance the economic viability of the sector.
Iluka’s Balranald project will produce zircon, rutile, ilmenite and rare earths – all essential advanced for the advanced manufacturing of clean energy products like electric vehicles and wind turbines, solar panels, batteries, and high-performance industrial materials. These minerals will be processed onshore in Australia. The project is forecast to generate $153 million in royalties and support 270 ongoing jobs over the life of the mine.
Scandium oxide is used in advanced technologies including 5G and 6G communications, semiconductors, defence applications and fuel cell technologies. The Sunrise Energy project is forecast to generate $200 million in capital investment, $113 million in royalties and support 59 ongoing jobs over the life of the mine.
The Syerston Scandium Project has been identified as a project of strategic importance under the US-Australia critical minerals partnership. In September 2025, Sunrise received a letter of interest from the U.S. Export-Import Bank for US$67 million in debt financing for the Syerston Scandium Project. This support further reinforces the strategic necessity of bringing Syerston online as rapidly as possible.
NSW has globally significant resources or exploration potential for 21 of the 31 nationally declared critical minerals, including scandium, cobalt and rare earths. The state has 14 active metals mines which employ about 5,700 people, mostly across the Central West and Far West. There are another 13 critical minerals mining and processing projects in NSW ready for investment.
The royalty deferral scheme forms part of the Minns Labor Government’s comprehensive plan to partner with industry to support exploration, investment and production of critical minerals.
This includes approving new critical minerals mines, a $2.5 million exploration grants program co-funded with industry and the release of even more pre-competitive geospatial data to assist explorers.
The Minns Labor Government is providing the right plan and steady leadership to create jobs, support NSW families and secure the state’s future.
Minister for Natural Resources Courtney Houssos said:
“Approving these two projects for our royalty deferral scheme is an important next step in delivering local jobs – NSW has abundant resources, and the Government is committed to partnering with industry to get production up and running.
“By supporting projects through the high-cost early stages of development, we are helping unlock investment, create regional jobs and strengthen supply chains that are critical to the future global economy.
“Mining has a long history in NSW and initiatives like the critical minerals royalty deferral scheme show that it also has a bright future.
“We will continue to work with critical minerals companies to find opportunities to best leverage our natural resources to support supply chains around the world, and jobs here at home.”
CEO of Association of Mining and Exploration Companies (AMEC) Warren Pearce said:
“The announcement of two projects set to benefit from the NSW royalty deferral initiative demonstrates what can be achieved when governments work with industry to unlock investment.
“For critical minerals projects, improving cash flow during the early stages of production can make the difference between a project proceeding or remaining on the drawing board.”
A NSW Minerals Council spokesperson said:
“The Royalty Deferral Scheme is a great initiative to help improve cashflow in the crucial early stages of developing critical minerals projects, ensuring these projects are set up the deliver the long-term economic benefits they will bring to NSW.”
Iluka Resources’ Chief Operating Officer Shane Tilka said:
“We appreciate the NSW Government’s support, including through its royalty deferral scheme, which recognises the significant capital and technical investment required to bring new critical minerals projects into production.”
“Support of this kind is particularly valuable during the ramp-up phase, when projects are transitioning from development into steady-state operation.”
“Commencing mining at Balranald is an important milestone for Iluka and the culmination of more than 15 years of research and development.
“Using innovative remote underground mining technology, Balranald will produce premium zircon, natural rutile, ilmenite and rare earth-bearing mineral concentrates that will feed our processing facilities and supply our customers for the next decade.”
Sunrise Energy Metals Limited Managing Director Sam Riggall said:
“We are delighted to be accepted into the NSW Critical Minerals Royalty Deferral Scheme.”
“The scandium we will mine in Australia will become a cornerstone for global supply chains, critical to civilian and defence applications.
“We thank the New South Wales Government for its support, and look forward to delivering a project that generates benefits for the state of New South Wales and the local community.”
