Newly formed NSW Cup side Illawarra, the Illawarra Coal Rugby League (formerly the Carlton League and VB Cup), junior leagues and representative teams will benefit from the landmark deal, which has the option of a further three-year extension.

Illawarra Coal president Colin Bloomfield said the agreement reflected the company’s healthy financial position.

Illawarra Coal recently received approval to extend mining at its Appin and West Cliff mines for a further 30 years.

‘‘We’ve been investing in our business for a long time and putting a lot of money into the Illawarra Coal business and we have a long future here,’’ Mr Bloomfield said.

‘‘We have a 30-year approval we’ve just received and because of the longevity of our business - 80 years past and at least 30 years to go - I guess these are very long-term businesses and we think about them as long-term businesses.

‘‘And that’s the nature of this partnership. It’s not a one-year deal, it’s a three-year deal with an option that could extend for another three years.’’

Illawarra NSW Cup coach Paul McGregor welcomed the sponsorship.

‘‘You’ve got to have your back room staff sorted out as well as your front room staff and they’ve done a magnificent job to pull all of this together,’’ he said.

Mr Bloomfield said the agreement was designed to foster rugby league in arguably the game’s biggest nursery.

‘‘It’s really good for rugby league because it gives them certainty about some of the funding they’ll have for the next three years, and that’s great,’’ he said.

Mr Bloomfield said there were similarities between the Illawarra Coal (owned by BHP Billiton) sponsorship, and BHP Steel’s sponsorship of the Illawarra Steelers during the 1980s and ’90s.

The Illawarra NSW Cup side will play its first game, a joint trial with the Dragons, tomorrow.