How We Mine

Our mineral resources are owned by the State Government on behalf of the people of NSW. A comprehensive process of issuing exploration and mining licenses is managed by the Department of Trade and Investment, Regional Infrastructure and Services in conjunction with the Department of Planning and Infrastructure. All exploration and mining activity in NSW is conducted on titles issued and administered by the State Government in return for royalties.

The process of exploring for minerals and developing a mine involves a series of stages and approvals that normally takes several years from the time exploration begins until mining commences. Exploration activities do not always lead to mining. Australia-wide experience has been that of every 1,000 prospects investigated, about 100 are followed up, 10 are subjected to detailed investigation and 1 becomes a commercial mine. These statistics vary depending on the mineral being explored. In the case of coal, it is more likely that exploration will occur where there is a known resource.

An exploration licence granted by the State Government enables a company to carry out exploration work to identify potential mineral resources. Following the exploration phase, mining companies must undertake a rigorous planning process in consultation with the government and the community before being granted a mining licence. This planning process ensures that potential environmental and community impacts are fully evaluated and managed. The process also ensures best practice management of all other aspects of the mine’s operations, ranging from workplace safety to mine site closure and rehabilitation.