Originally published by Stephen Galilee of The Daily Telegraph
25.05.2026
With the State Budget to be released in just a few weeks, the NSW economy is facing strong headwinds. In the year ahead, economic growth in our state is now set to be less than half previously expected, according to a recent speech from Treasurer Daniel Mookhey.
We all want a strong economy, and for governments to be able to properly manage their budgets. However, according to the NSW Treasurer, the economic impact of the Middle-East conflict is biting.
At the same time, the higher mortgage interest rates hurting family budgets are also hurting the State Budget. When combined with yet another federal GST revenue rip-off, the challenge of managing the NSW State Budget has become even harder.
In his speech, the Treasurer hailed private investment as key to NSW avoiding a recession, with renewables projects leading the way. It’s understandable that after all the billions of taxpayer funds poured into the energy transition, the Treasurer would welcome some private investment in renewables too.
Renewables may be delivering investment, but do they deliver many jobs? Evidence suggests a renewables-related jobs boom is unlikely. According to NSW Government websites, a massive $77 billion in private investment in renewables could occur by 2035, but, just 4,450 ongoing direct jobs are expected from the so-called ‘Renewable Energy Roadmap’ under development.
Similarly, renewables projects listed as operational by the NSW Department of Planning are apparently providing just 319 ongoing direct jobs.
Another 85 approved renewables projects are expected to deliver just 750 ongoing direct jobs.
Other job-generating industries are clearly going to be needed to keep the NSW economy strong.
Meanwhile, mining has also played a significant role in helping avoid an economic downturn. Mining now directly spends over $20 billion each year in NSW, and usually contributes between ten to thirteen percent of the total annual private sector capital investment in our state. This is a significant contribution, and it has been made over many years. Now at a time of economic challenge, there’s the potential for mining to do much more.
Currently, there are proposals for nine new mines in NSW, along with extensions for another eighteen others. These include metals and critical minerals mines, along with extensions to a number of existing coal mining operations employing thousands of people.
If approved, these projects would inject around $9.7 billion of new private sector investment into the NSW economy, mostly in the regions. The NSW Treasurer would also receive billions more in mining royalties over the lives of these projects, helping to fund more public services and infrastructure. Importantly, mining projects in the planning pipeline would also deliver 6,500 new jobs for NSW, and protect 8,000 existing mining jobs into the future.
These projects need to be approved. However, getting approval is often just the start of protracted ‘lawfare’. Well-funded activists use various legal loopholes and other opportunities to slow down and stop approved projects, blocking investment and jobs.
With several mining projects currently stuck in the courts in this way, NSW is losing out. Action is required from our political leaders to reduce opportunities for this economic vandalism.
NSW cannot afford to turn its back on billions in mining investment and thousands of jobs. Last year the NSW Government established a new ‘Investment Delivery Authority’, focusing initially on renewables projects and data centres. It’s time for mining projects to become a priority too. At a time when global events have reminded us of the need for a strong, diverse and resilient economy, the mining industry stands ready to deliver.