PERTH (miningweekly.com) – The New South Wales (NSW) Minerals Council said on Tuesday that rocketing royalty payments from the mining industry would dig the state’s budget out of deficit and push it into surplus, helping to provide key services such as schools, police and hospitals.

The mining industry’s contribution to the state’s bottom line would surge from A$953-million in 2009/10 to A$1,77-billion in 2010/11 – an increase of 85%.

“Mining is again proving to be the engine room of the NSW economy driving the state budget back into the black,” NSW Minerals Council CEO Dr Nikki Williams said.

“State revenue is expected to grow by A$2,2-billion in 2010/11 and A$815-million of that will come from mining. Yet again, the minerals industry is punching above its weight.

“This underlines the importance of controlling the cost of doing business in NSW.”

Williams noted that long-term investment, rather than a short-term slug, would deliver the ongoing economic growth and the government revenues needed to provide first-class public services.

“We welcome the relative cost stability in NSW at a time when the federal government is looking to impose its resources super profits tax on an industry it appears not to understand,” Williams said.

The A$21,5-million allocated to the A$100-million Clean Coal Fund would assist in developing low-emissions coal technologies and complement the industry’s A$1-billion commitment to research and development.

“The coal industry is working on the rapid demonstration and deployment low-emissions technologies, such as carbon capture and storage,” Williams said.