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Major economic boost to the Central West with Cowal gold mine granted extension

11 December 2024

The Cowal gold mine in the Central West has been granted an expansion by the Minns Labor Government to 2042, generating $134 million of capital investment and ensuring ongoing support for more than 500 jobs.

The approval by the Department of Planning, Housing and Infrastructure (DPHI) is a significant development for the region which will support local jobs, boost the regional economy and sustain long-term growth for the community.

The extension on the mine, owned by Evolution Mining, has been approved after a rigorous planning and environmental assessment process.

The economic impact assessment submitted by Evolution Mining during the planning process estimated the expansion would result in an additional $910 million boost to the NSW economy over the life of the project. In that time, it will produce approximately 1.6 million ounces of gold and 1.5 million ounces of silver.

Under the extension plan, the project will create three new smaller open-cut pits. It is expected to create an additional 64 full-time jobs during construction and contribute an additional $56 million in royalties for the NSW Government.

As part of the extension, Cowal has committed to using cutting-edge technology to reduce environmental impacts and enhance its rehabilitation efforts, ensuring a positive legacy for the mine for future generations.

The decision signals confidence in the future of mining in NSW, underpinned by world-class environmental and sustainable mining practices and a commitment to regional employment.

The Cowal gold mine is the second most significant gold resource in NSW. Gold is an essential component in the wiring and circuitry of many electronics, including solar panels and electric vehicles.

The Minns Labor Government recently updated the state’s Critical Minerals and High-Tech Metals Strategy. With deposits of 21 of the 31 nationally identified critical minerals, as well as identified resources of priority minerals and metals including scandium, copper, silver and cobalt, NSW is well placed to be a global leader in the race for critical minerals.

The updated strategy sets a vision for NSW to become a global leader in critical minerals, drive the clean energy transition and re-build domestic manufacturing.

The International Energy Agency estimates that over the next 20 years, the world will need six times the amount of critical minerals currently mined to reach global net-zero carbon emissions.

The project will now proceed to the Commonwealth Government for determination.

Minister for Planning and Public Spaces Paul Scully said:

“A strong and growing minerals sector is critical to our state’s economy and ongoing prosperity.

“The Cowal gold mine expansion has undergone a robust assessment and will deliver real long-term economic benefits for our state and the Central West community.

“Importantly, this extension will be accompanied by a strong commitment to environmental outcomes and rehabilitation, ensuring a positive legacy.”

Minister for Natural Resources Courtney Houssos said:

“It’s encouraging to see the long tradition of metals mining in NSW continue with the extension of the Cowal gold mine.

“This is a great decision for the Central West. It brings new jobs, secures existing roles and will further sustain the regional economy.

“With world-class deposits of critical minerals and high-tech metals, we want to realise more opportunities like this in NSW as we build towards the clean energy future.”