The Northern Territory Government is calling on the public to have their say on its mineral royalty scheme.
When it comes to the economic advantages provided by mining, the State Government said it wants the best deal for Territorians. As a result, a reform in how mineral royalties are collected in the Territory is being examined.
“Royalties are the biggest source of revenue collected by the Northern Territory, and we want the best deal not only on the amount of royalties but also the economic benefits mining generates throughout the Territory, especially in our regional and remote areas,” Minister for Mining and Industry Nicole Manison said.
According to Minister Manison, the Territory is rich in natural resources, containing 15 of the critical minerals required to combat climate change and the geological potential for another 13.
“Right now, we are in a position to set our course for a mining industry that is not only profitable to the Northern Territory economy, but also supports the energy transition to renewables,” Minister Manison added.
In 2021, the State Government created the Mineral Development Taskforce (MDT) to seek and evaluate the potential to expedite investment in new mining projects.
MDT published its final report in April 2023, with one crucial suggestion being to replace the Territory’s present profit-based royalty scheme with an ad valorem model that is straightforward, competitive, and contemporary.
A Have Your Say page was launched to allow interested parties to download the consultation paper and submit feedback.
Feedback and input from various stakeholders will shape the ultimate design of an ad valorem royalty scheme, which the State Government will then consider.
