Newcastle Mines Grouting Fund


We administer the Newcastle Mines Grouting Fund (NMGF), a NSW Government initiative designed to complement Government’s wider city centre revitalisation program, and help mitigate risk associated with mine subsidence. It acts like an insurance policy that applies after the cost of grouting exceeds a certain threshold. This reduces uncertainty and risk associated with building in the city centre mine subsidence zone, and encourages new multi-storey housing and commercial development.

NSW Government established the NMGF in 2015 to address the issue of mine subsidence and its impact on property development in the Newcastle CBD. The Fund helps promote new investment by giving developers and investors financial certainty about the cost of mine remediation.

Fund review complete

A review of the NMGF in 2022 confirmed the Fund is still meeting its objectives and providing the necessary benefits for the city. 

The Fund will continue with an allocation of $11 million and be next reviewed by June 2026. It will continue to operate in the same way and while it will still focus on the Newcastle CBD, it will no longer include Wickham. 

Further information about the Fund is set out in the NMGF Grant Guidelines and the Review Information.

NMGF Grant Guidelines

NMGF Operational Area Map

The NMGF applies to a defined area of the Newcastle CBD only. Developers may apply to have their project included in the Fund if it falls within the defined areas of NMGF Operational Area Map below.

Newcastle Mines Grouting Fund - Operational Area Map
Enlarge map (PDF)

The maps below provide a more detailed view of each area:

Operational Area 1
Operational Area 2
Operational Area 3
Operational Area 4

Documents, forms and further information

Frequently asked questions about the NMGF review

 

Q. Will the Fund continue? 

A. Yes. The Fund will continue to operate in the same way as always and will be next reviewed by June 2026.   

Q. How much is available in the Fund? 

A. $11M has been allocated to the Fund.   

Q. Have the rates changed?  

A. No. HCCDC may however change the rates in the future from time to time. 

Q. Why were the rates not reduced?  

A. The Fund has been working well and generally accepted by the market and financiers with the existing rates. The Fund needs to strike a balance to be sustainable. Lowering the rates would result in a faster draw down and end the Fund sooner than otherwise. 

Remembering that the Fund operates as an insurance policy, the existence of the Fund is just as  important as the  actual rates.   

Q. Has the boundary of the Fund changed? 

A. Yes. The Fund operates for sites that are both within the Newcastle City Centre and a Mine Subsidence District. Additionally, it was always designed to operate in respect of areas where site by site (or strategic) grouting is appropriate, as opposed to where bulk or precinct wide grouting is required. Following further technical studies by Subsidence Advisory NSW, it has been confirmed that due to geological and other conditions, more extensive bulk or precinct wide grouting stabilising relatively large areas to support single development sites is required to stabilise sites within Wickham.  

This is riskier, more difficult to quantify and more expensive than strategic grouting and is inconsistent with the grouting approach underpinning the Fund. This approach also incorporates a ‘user pays’ approach.  Accordingly, Wickham has been excluded from the Fund.  Some parts of Wickham are outside a Mine Subsidence District and have already been developed with some density. 

Q. Why does the Fund map look different? 

A. The Fund map has been simplified and now shows which sites are within the operational area of the Fund and the rate that applies to that site.  It groups areas by rate, removes unnecessary information and removes areas which are not in a Mine Subsidence District. 

Q. Is the Fund expanding into other locations? 

A. No. The Fund was established to focus on the economic development of the Newcastle CBD, and to address market failure in the CBD. It has a finite amount of money and still has work to do in the CBD. Evidence has not been  provided suggesting developments outside the CBD  have not proceeded based only on mine subsidence issues.  

The Federal Government has committed to $10 million for a fund in Lake Macquarie which can operate alongside this Fund. 

Q. What was the purpose of the Fund review? 

A. To determine if the Fund: 

  • has achieved its original objectives 
  • if the objectives are still relevant 
  • should continue in its current form  
  • should be accessible from other geographic locations 

Q. What did the review consider? 

A. The Fund review considered: 

  • review of previous applications  
  • review of developments that were delivered but did not seek funding 
  • review of studies and evidence produced through the Fund 
  • considered the objectives of the Fund in context of current NSW Government priorities 
  • considered alternate funding mechanisms 
  • consulted with key stakeholders from within the Fund areas 
  • consulted with stakeholders regarding if the fund would be suitable in other locations 
  • requested and considered advice and evidence relevant to this review 
  • considered and provided advice on other matters related to the purpose of the review. 

Q. Can I apply to the Fund if only part of my project site sits within the operational area? 

A.  Yes.  

Q. When will the Newcastle Mines Grouting Fund be reviewed again? 

A. There will be a further review of the Fund by June 2026. The timing of the review will depend on how fast the Fund is drawn down.  The map showing which areas are within the Fund and the rates may change from time to time however. 

Q. Who was consulted as part of the review? 

  • City of Newcastle 
  • Property Council of Australia – Hunter Chapter 
  • Urban Development Institute of Australia – Hunter Chapter 
  • Lake Macquarie City Council 
  • Subsidence Advisory NSW (for technical input and engineering advice only) 

Q. How many projects has the Fund paid for so far? 

A. Seven applications have been completed since the Fund commenced in 2016, with three projects receiving payments. Projects funded include. 

  • an eight-storey residential building at 116 Parry Street;  
  • an eight-storey mixed use building at 122 – 124 Parry Street and East End Stage 2;  
  • a mixed-use development at 147, 151-153 Hunter Street. 

Three of the approved applications didn’t meet the threshold for payment so did not draw on the Fund. The application from City of Newcastle to grout underneath the expansion of the Newcastle Art Gallery received in April 2022 was the first application to be received since mid-2020.   

Recent applications approved for the Fund, include the Newcastle Art Gallery project, One National Park Street and East End Stage 3 & 4.  A proposal for a King Street site is under review.    

Q. Who was part of the review committee? 

A. The NSW Government Advisory Group, comprised of representatives from: 

  • HCCDC 
  • Department of Planning and Environment 
  • Department of Regional NSW 

Subsidence Advisory NSW provided technical support to HCCDC. 

Q. What conditions does my project need to meet, in order to apply to the fund? 

A.  HCCDC has produced simple materials and flowcharts to help developers understand how to apply to the Fund, published on this webpage.

Key requirements are that your project must be in the Fund area, your project must have a grouting plan approved by Subsidence Advisory NSW and a development approval (DA). 

Q. How can I find out more about the Fund?

A. To enquire about the Newcastle Mines Grouting Fund, contact HCCDC:

To enquire about the Newcastle Mines Grouting Fund: