The Iemma Government will expand mineral exploration in NSW and invest $52.9 million in the State’s mining industry as part of this year’s Budget, Minister for Mineral Resources Ian Macdonald announced today.

Minister Macdonald said a key part of the 2008/09 Budget is an additional $16.5 million which will be spent on the highly successful New Frontiers exploration initiative.

"The Government will extend this important program for a further three years until June 2011 at $5.5 million a year," Mr Macdonald said.

"It will help us explore new opportunities in under-explored parts of NSW so we can further expand our mining industry, which brings enormous benefits to our State.

"Specifically we will be looking for mineral and petroleum opportunities in the frontier regions in the far west of the State, which are largely unexplored and have potential for the discovery of mineral and gas resources.

"The energy component of this program will provide information to support the Government’s efforts to identify new sources of energy supply and possible sites for carbon sequestration in this State - which is essential for the development of clean coal technology.

"The New Frontiers program has stimulated private mineral and petroleum exploration expenditure in NSW which reached $190 million in 2006-07.

"The Government’s exploration initiatives have led to new mineral discoveries which have had a substantial impact on our copper and gold production.

"For example, since the first initiative commenced in 1994-95, copper production in NSW has increased by more than 600% in value from $232 million to more than $1.3 billion.

"In this same period, gold production has increased by more than 400% in value from $152 million to more than $650 million.

"As a result, NSW is now the second largest copper and gold producing State in Australia.

"New discoveries have also provided an economic and employment boost to many regional and rural areas including in Orange, Parkes, Cobar, Nyngan, West Wyalong, and in the southwest of the State.

"NSW competes globally for exploration investment and New Frontiers makes this State internationally competitive."

Minister Macdonald said other key areas of the Budget include:

$21.7million for mine safety - This includes funding for site assessments, accident investigations, technical assessments and maintaining oversight of the equipment used in NSW mines.

$1.9 million for remedial works to mined areas - this includes rehabilitating derelict mine sites and mediating the environment of former mine sites.

"The mining industry is the largest commodity export industry in NSW, the total value of mineral production in 2006-07 was $12.3 billion.

"The minerals industry employs 47,000 people directly and supports over 200,000 jobs throughout the State.

Media contact: Jenny Ward 02 8289 3925