The Cobar Miners Memorial was officially opened on Saturday, to pay tribute to the 1980 Cobar CSA mine fire.

The $971,000 memorial, located at the Cobar Mining Heritage Park, will provide an everlasting reminder to those who paid the greatest sacrifice while assisting in the town's establishment as an economic powerhouse.

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"You cannot tell the history of Cobar without mining or resources," Deputy Prime Minister Michael McCormack said.

"This memorial will stand in recognition of those miners who unfortunately lost their lives building this prosperous town and creating that history."

Designed by the community to replicate a mining shaft, the memorial will give visitors a feel for the mining environment.

"The new memorial will be a drawcard for tourists, educating visitors to the area about past tragedies that have occurred within the mines," Parkes MP Mark Coulton said.

"It will also bring locals together for services and community gatherings."

Cobar mayor Peter Abbott said the project was driven by volunteers who were also looking at other ways to use the infrastructure.

"The memorial will host an annual Lost Miners Event to remember those who have lost their lives in mines," he said.

This project received $349,777 in funding from the Australian government under the Building Better Regions Fund, $225,950 from the Cobar Shire Council, $360,028 from the NSW government under the Stronger Country Communities Fund and $36,000 from the NSW government Premier's Grant.

Construction of the project began in September 2020 and was completed in April 2021.