The recent NSW Budget was a blow to mining communities like Cobar, with the cut Resources for Regions program set to form a hole worth millions of dollars for councils who were relying on it. 

The controversy surrounding the cut was intensified with the government's recent 2.6 per cent increase to mining royalties, expecting to see an extra $2.7 billion returned to the state. 

In Cobar, the Resources for Regions program put 11 million back into the community in the form of road repairs, footpaths, bridge upgrades, and more. 

“It’s a small percentage of the royalties that come from our mining companies here, and the government has decided to increase their royalties and take money that’s for our community here to survive,” Cobar Shire Council general manager Peter Vlatko said. 

“We’ve got three or four mines that have a significant impact on our community in terms of making it livable so the mines continue to operate.”

“We don’t have much in terms of ratepayers. So the liveability in our community is based on getting grants,” Mr Vlatko said. 

Cobar Shire Council general manager Peter Vlatko. (Cobar Shire Council)

The scrapping of the program has put the future of the next project they were hoping to achieve - revitalising the town pool to make it more functional and attractive - into question. 

“We’re not a council that says ‘hand us the money’, you still have to justify it and prove a point that it actually benefits the community.”

NSW Minerals Council CEO Stephen Galilee said that while budget repairs were necessary, mining towns will be hit the hardest. 

“The billions delivered in royalty revenue are only possible due to the contribution of the hard-working people of our regional mining communities,” Mr Galilee said.

“This was an important program that delivered funding worth hundreds of millions over many years to local councils representing mining communities, helping to provide local infrastructure and services.”

Member for Barwon Roy Butler said the abolition of the funding will directly affect quality of life for people in mining communities. 

“These funds still exist and the review process over the next four months needs to recognise that councils with mining experience impacts that need additional financial support.”