Life after mining: The NSW Government's vision for land post-mining

The NSW Government has set a vision for the future of post-mining land use, accepting all 13 recommendations of the NSW Parliament's Standing Committee on State Development’s Report No. 53 on Beneficial and Productive Post-Mining Land Use. This approach marks a policy shift, moving from piecemeal mine-closure arrangements to a coordinated, State-wide approach to economic transition and land repurposing.

While the Parliamentary review and the Government's response deal with all forms of mining, they are most relevant now for coal mining, given the historical and current scale of coal mining in NSW and the fact that most NSW mines approaching end-of-life are coal mines.

A key feature of the Government’s response is a wholesale review of the NSW post-mining regulatory framework, focusing on the Mining Act 1992, Environmental Planning and Assessment Act 1979, and Protection of the Environment Operations Act 1997. This review, scheduled for completion by June 2026, is expected to deliver new statutory requirements for mine closure and establish a dedicated approval pathway for alternative land uses. The aim is to provide greater flexibility for successive land uses, simplify mining lease rights, and ensure that biodiversity and water licensing requirements are enhanced and aligned with future beneficial uses.

Central to the transition is the proposed new Future Jobs and Investment Authority (FJIA), which will act as the control room for the State’s post-mining strategy. The FJIA will be supported by regional divisions and a board, and will have express powers to co-ordinate across government, industry, and community stakeholders. It will manage a new Future Jobs and Investment Fund, which will incorporate the existing Royalties for Rejuvenation fund.

Over the next 12 to 18 months, annual land and infrastructure audits, workforce skills mapping, demonstration projects, and a review of rehabilitation security deposits will help shape the investment landscape. For clients with interests in mining leases, infrastructure, energy, housing, or industrial development, early engagement will be important as the Government seeks proposals to drive regional economic diversification, while also developing its own ideas for land use planning.

Why the Future Jobs and Investment Authority matters

While coal royalties continue to play a significant role in the NSW budget, the Government is acutely aware that the long-term future of many mining regions depends on a successful transition to new economic uses – mine closure is not just an environmental or regulatory issue, but a major opportunity for regional renewal and investment. The creation and resourcing of the FJIA signals a move away from ad-hoc, site-by-site negotiations towards a systematic, place-based transition program that will be coordinated at both the State and regional levels.

For industry participants, this means that new opportunities – and new compliance obligations – will likely emerge as legislative reforms are introduced. New opportunities for industry participants will come through putting forward innovative proposals for post-mining land use, coupled with community engagement, economic diversification and the reuse of existing infrastructure.

The recommendations for post-mining transition at a glance

The Standing Committee's report is structured around a series of interlocking recommendations, each designed to address a key aspect of the post-mining transition. Set out below are the implications of the Government supporting those recommendations:

1. Legislative overhaul: The Government will undertake a comprehensive review of the NSW post-mining regulatory framework, focusing on the Mining Act 1992, Environmental Planning and Assessment Act 1979, and Protection of the Environment Operations Act 1997 over the next 12 months. The goal is to update land-use planning controls, simplify mining lease rights, and create a framework for the Resources Regulator to oversee and approve future beneficial uses. The review will ensure continuity around water licensing. Interestingly, while the Government supported the Standing Committee's recommendation which included specific support for "nature positive outcomes", the Government's response did not indicate any clear policy approach to biodiversity outcomes.

2. Regional land and infrastructure audits: The FJIA, in partnership with the Department of Planning, Housing and Infrastructure, will conduct an initial review and annual audits to identify surplus mining land, buffer areas, and infrastructure assets that could be repurposed for housing, renewable energy, advanced manufacturing, tourism, and other uses. Four coal mining regions will be established (boundaries are yet to be identified, but see below), and it is expected that land use strategies will highlight themes within these regions. Legacy mine sites will be included in the review and audits, and opportunities will include 28 sites which have been identified as possibly containing critical minerals and high-tech metals deposits inside their old waste.

3. An Issues Paper will be released to outline key environmental constraints and opportunities for land transformation.

4. Place-based delivery model: Four Local Divisions – beginning with the Hunter and Central West – will be established to act as regional hubs for transition. These divisions will receive expressions of interest from community, industry, and local government, conduct strategic assessments, and facilitate engagement with local stakeholders to identify priority land uses and economic development opportunities.

5. Rehabilitation and security deposits: There will be a continued focus on effective rehabilitation, though there should be more scope for adaptation of rehabilitation plans to suit land and infrastructure repurposing. The adequacy of current security deposits for mine rehabilitation is under review, with the Resources Regulator’s cost-estimation tool being updated.

6. Governance, pilots, and innovation: The Government will establish a Minister-led working group to drive transformation, partner with local government and industry on demonstration projects, and explore the adoption of international standards for managing mining legacies. There will also be incentives for the reuse of essential infrastructure and support for innovative approaches to land rehabilitation, such as geomorphic design and tailings re-treatment.

7. In the short term, the Government proposes to work with Muswellbrook and Lake Macquarie councils to develop master plans for buffer land surrounding the Mount Arthur and West Wallsend coal mines using $5 million funding provided by the Commonwealth Government.

Implications for proponents, developers, financiers and councils

Mining companies and leaseholders should review their Mine Operations Plans to ensure they are aligned with the anticipated requirements for progressive rehabilitation and flexible future land uses. With the review of rehabilitation security deposits underway, companies should reassess internal cost estimates including the possibility of increased bond requirements, and consider how plans for site repurposing might present opportunities to better manage rehabilitation costs and security.

Also, participants should consider commercially viable, community-supported proposals for the reuse of residual infrastructure – such as power lines and workshops – and to engage early with the FJIA, as early movers are likely to benefit from Government support and streamlined approvals.

For proponents in the energy, renewables, and storage sectors, the upcoming land and infrastructure audits will provide valuable insights into available sites, including transmission corridors, voids suitable for pumped hydro, and buffer lands.

Property and industrial developers should consider the opportunities presented by surplus mine land, particularly near established towns where large-lot supply is scarce.

Investors and financiers will find that the FJIA’s role in curating an investment pipeline, coupled with the focus on demonstration projects, will create a more transparent and investable environment.

Councils and community organisations should collaborate with the FJIA to ensure that local priorities are embedded in regional transition strategies.