Nationals MPs Dave Layzell and Paul Toole have challenged the state government to guarantee no mines will be closed, or jobs lost, as a result of any proposed changes to royalties in NSW.
NSW Treasurer Daniel Mookhey recently argued that the state was "entitled to a fair return for their resources", and that the government intended to consult miners, electricity generators and key trading partners before possibly introducing changes to the royalty system.
Glencore has also warned that investment and jobs could be put at risk if royalties are increased in the upcoming state budget.
Upper Hunter MP Dave Layzell said any increase to royalty rates could result in premature mine closures, which would result in even more money in lost royalty payments.
"We have seen Queensland's greedy grab for coal mining cash kill investment, attack jobs and force mine closures -- the NSW government must give a commitment that will not be repeated here," Mr Layzell said.
"Communities like mine and Mr Toole's help keep the lights on, ensuring energy and job security, and that is all threatened by a hike in royalties."
In a statement, Glencore said the NSW Budget was already benefiting from increased coal royalties with mineral royalties lifting by more than 50 per cent to A$5.5 billion in 2022/23.
"These royalties contribute to funding NSW hospitals, schools, infrastructure projects and essential services," the statement said.
"The key risk to continued coal production, and government royalties, is the increasing difficulty in securing project approvals from federal and state governments. Without continued coal production, the discussion on coal royalties may become a moot point."
The company said that the introduction of a progressive royalty-style system, which has been introduced in Queensland, would put investment and associated jobs at risk across the Hunter region.
"It's important that the NSW coal sector and the contribution of the thousands of coal mine workers are not taken for granted," the statement said.
"Glencore looks forward to genuine discussion with the Minns government on public policy."
