The 2023-24 Northern Territory Budget is investing in the growth of the Territory‘s mining and resources sector with the minerals sector making up a large portion of the Northern Territory economy.
The resources industry contributes to 37 per cent of the Northern Territory GSP, with the value of the Territory’s minerals output reaching $4.9 billion in 2021-2022 – an increase of 13.6 per cent on the previous year.
The value of the Territory’s minerals output reached $4.9 billion in 2021-2022, an increase of 13.6 per cent on the previous year.
Some notable investments include:
- $7.3 million to modernising the business systems at the Aboriginal Areas Protection Authority over the next three years
- $6 million to advancing the recommendations of the Minerals Development Taskforce
- $9.5 million per year for the Resourcing the Territory exploration program
Industry response
The Association of Mining and Exploration Companies (AMEC) has welcomed the budget’s commitment of $6 million over four years to deliver the Mineral Development Taskforce recommendations, which aim to increase investment in mining development and accelerate projects in order to see the 2023-24 Northern Territory Budget economy grow to $40 billion by 2030.
AMEC Chief Executive Officer, Warren Pearce, said this commitment will enable the delivery of the Mineral Development Taskforce recommendations and, importantly, reform the profit-based hybrid royalty scheme to a pure ad valorem scheme will transform the Territory.
“We hope the commitment of $1.7 million over the coming two years to accelerate and expand remediation of legacy mines will finally unlock the Mining Remediation Fund,” Mr Pearce said.
“A $2.24 billion investment into roads, aerodromes, jetties, and barge landings will upgrade a range of important service routes for the mining and resources sector. These upgrades will change the economics and commerciality of projects and are critical in the long-term to opening up the Territory.”
Mr Pearce said the ongoing commitment to invest in the Resourcing the Territory Exploration Program will help drive exploration activity in the Territory and underpins private sector exploration success.
“The co-funded drilling and geophysics programme run by the Northern Territory Geological Survey derisks early investment and makes the Territory more attractive,” Mr Pearce said.
“Earmarking $7.3 million to modernising the business systems at the Aboriginal Areas Protection Authority over the next three years will facilitate a more expedient release of land for mineral leases, while ensuring the process meets best practice standards.
“The promise of the Mineral Development Taskforce Final Report is that the government will get the regulatory settings right so that this opportunity can be turned into jobs and royalties for the community.“
Mr Pearce said this budget invests in the future through royalty reform, co-funded drilling, regulatory systems upgrades, and infrastructure.
The Mineral Council of Australia commends the Northern Territory Government’s commitment in the 2023-24 Budget to grow the minerals sector through its commitment to advancing the recommendations of the Minerals Development Taskforce.
This funding will ensure the Department of Industry, Tourism and Trade has the resourcing required to implement the necessary changes put to the Northern Territory Government in the recommendations by the Taskforce to attract investment and remove unnecessary impediments.
