Illawarra set to learn where its share of $75m in coal royalties will be spent

The NSW government has released its proposed structure for the Future Jobs and Investment Authority, which will replace the Royalties for Rejuvenation scheme established by the former Coalition government.

Under that scheme, at least $25 million per year was set aside from mining royalties collected by the state government to support coal mining communities.

Since its establishment in 2022, the fund has collected $75 million but has not paid out to any project. The previous government restricted the scheme from making any payments until 2028 or until it reached $250 million.

Minister for Natural Resources Courtney Houssos said Labor's proposed structure would provide the right framework of support.

"I look forward to receiving feedback on our proposed model and then getting to work on establishing these authorities by the end of the year," Ms Houssos said.

Under the proposed structure each coal mining region will have its own regional Future Jobs and Investment Authority.

The chair of each regional authority will also sit on the Future Jobs and Investment Board. This board will be chaired by the Future Jobs and Investment Advocate, a statutory role - meaning it is created in law - that will provide advice to the minister and across government.

There will also be an Office of Future Jobs and Investment, a unit within the Department of Primary Industries and Regional Development that will support the other parts of the structure.

The NSW government will spend $5.2 million over four years to establish the proposed structure.

"Releasing this issues paper continues the government's work with local communities for a future beyond coal," Ms Houssos said.

While the Illawarra Expert Panel has had five meetings since February last year, what project might receive funding under the new structure remains an open question.

In the Hunter, a former open-cut coal mine will be turned into a $95 million motorsport complex, but as most of the Illawarra's mines are underground, similar projects here may be off the cards.

Minister for the Illawarra and South Coast Ryan Park said the new structure could support coal miners to transition into sectors such as manufacturing and defence.

"Our highly skilled workforce has been making strides in transforming our region to be future ready, transitioning skills to modern industries necessary to continue attracting investments and new opportunities well into the future," he said.

As of 2023, there were five active coal mines in the Illawarra, employing 3397 workers.

Coal mining produces just over 10 per cent of the region's total economic output.