Iluka Resources’ Balranald project in the Murray Basin and Sunrise Energy Metals’ Syerston scandium project in the Central West are slated to unlock $776 million in capital investment, following the New South Wales Government’s critical minerals royalty deferral scheme.
Iluka’s Balranald project is currently being commissioned, while construction at Syerston is expected to commence in the second half of 2026, with production starting in mid-2028.
Looking closer, Iluka’s Balranald project will produce zircon, rutile, ilmenite, and rare earths, which are all essential for the advanced manufacturing of clean energy products such as electric vehicles and wind turbines, solar panels, batteries, and high-performance industrial materials.
Iluka chief operating officer Shane Tilka said that Iluka appreciates the NSW government’s support, and that the scheme “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,” he said.
“Commencing mining at Balranald is an important milestone for Iluka and the culmination of more than 15 years of research and development.
“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.”
Balranald’s minerals will be processed onshore, in Australia, and the project is forecast to generate $153 million in royalties and support 270 ongoing jobs over the life of the mine.
Syerston’s scandium oxide plays a large role 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.
Sunrise managing director Sam Riggal said that he and the team are delighted to be accepted into the scheme.
“The scandium we will mine in Australia will become a cornerstone for global supply chains, critical to civilian and defence applications,” he said.
“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.”
The two projects are the first to take up the scheme, which, in turn, is the first program of its kind in Australia designed to “stimulate” the production of critical mineral mines.
The NSW government said that once both sites are operational, they will create “hundreds” of jobs across the state’s regional areas.
Forming part of the state’s $250 million push to boost global investment in the state, the royalty deferral scheme, announced as part of the state’s Critical Minerals and High-Tech Strategy launched in October 2024, is an opt-in initiative that eases the cash flow burden on critical minerals projects during their early stages.
The program frees up resources for extraction, production, and processing, and under the scheme, royalties are deferred for five years but still need to be paid in full by the mine’s owner.
The state’s Minister for Natural Resources Courtney Houssos said that the approval of the two projects under the scheme is an “important next step” in delivering local jobs.
“New South Wales has abundant resources, and the government is committed to partnering with industry to get production up and running,” she said.
“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.”
Chief executive officer of the Association of Mining and Exploration Companies Warren Pearce said that the announcement 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 and remaining on the drawing board,” he said.
The NSW government said that the deferral scheme responds directly to industry feedback on the high initial investment costs of new critical minerals mines and the need to attract investment and enhance the economic viability of the sector.
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