The Northern Territory Government is encouraging Territorians to provide feedback on a proposed ad valorem royalty scheme for the mining sector, in an effort to have greater public input when it comes to the economic gains generated through mining.
The Northern Territory Government established the Mineral Development Taskforce (MDT) in 2021 to identify and investigate opportunities to accelerate investment in new mining projects. This includes a change to the way mineral royalties are collected in the Territory, which is being considered.
In April 2023 the MDT released its final report, and a key recommendation was to replace the Territory’s current profit-based royalty scheme with an ad valorem scheme that is simple, competitive, and modern.
A ‘Have Your Say’ page has been launched to provide interested parties the opportunity to download the consultation paper and provide feedback.
Feedback and input from a wide range of stakeholders will inform the final design of an ad valorem royalty scheme, to then be considered by the Territory Government.
Northern Territory Minister for Mining and Industry, Nicole Manison, said mining is one of the key drivers of the Northern Territory economy and the state must stay contemporary and competitive to attract more new mining investment.
“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,” Ms Manison said.
“The Territory has abundant natural resources, including 15 of the critical minerals the world needs to tackle climate change, and the geological potential for a further 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.”
Feedback is welcome until 4 August 2023.
Feedback can be provided here.
