The Northern Territory Government has released its Mineral Development Taskforce Final Report, outlining how to unlock a pipeline of projects through accelerated mining development and helping achieve a $40 billion economy by 2030.
The Mineral Development Taskforce was established in November 2021 to investigate and identify strategies to activate and secure ongoing private investment.
The taskforce comprised of government, industry and private sector experts, and was tasked with reporting findings back to the Northern Territory Government.
The final report outlines a series of recommendations and actions to drive and increase private investment in mining and downstream value-add projects, including:
- Introducing targeted initiatives to encourage increased exploration and mining activity
- Securing co-ordinated, transparent and efficient land access processes that respect land-owners and recognise co-existing uses
- Delivering targeted regulations focussed on outcomes to deliver improved project economics
- Updating the Territory’s royalties regime to make it more competitive and not a deterrent to investment
- Capitalising on economically sustainable downstream mineral value-add opportunities
- Government accepts the recommendations in principle and will now engage with key stakeholders and industry about the opportunities that have been identified to increase and enhance the competitiveness of the Territory as an investment destination
Northern Territory Minister for Mining and Industry, Nicole Manison, said, “The mining industry is the Northern Territory’s biggest contributor to the economy, and we can help tackle climate change by supplying the critical minerals the world needs.
“The Territory Government is sending a loud and clear message to investors that we are a world class destination for mining and we have the resources needed for low emission technologies.
“Growing mining will mean more well-paying jobs and royalties that will benefit all Territorians through better services and infrastructure.
“This is why we established the Mineral Development Taskforce, which has identified opportunities to harness sustainable downstream manufacturing and different royalty models that could make the Territory more competitive on a global scale.”
As a member of the Taskforce, the Minerals Council of Australia (MCA) has urged the Northern Territory Government to adopt the recommendations to turbo-charge the Territory’s mining sector.
MCA CEO, Tania Constable, said a royalty system that operates more like those in other successful Australian jurisdictions is an essential step.
“The only way to ensure returns for all – whether its royalties to government and Indigenous communities, wages and goods and services for Northern Territory business or returns on capital – is by making the Northern Territory system easy to navigate, simple and transparent,” Ms Constable said.
“The minerals sector contributes significantly to the Northern Territory economy, second only to the Federal Government. Without growth in the minerals sector, the Northern Territory is unlikely to reach its ambitious target of a $40 billion economy by 2030.”
Ms Constable said the sector not only provides economic benefits for the Northern Territory Government but is also a large employer of Territorians, provides training and education opportunities, and supports regional communities.
The Association of Mining and Exploration Companies (AMEC) has also welcomed the report and said that the commitment to modernise the Northern Territory’s royalty regime to an Ad Valorem system is a report highlight and a bold move to enhance the attractiveness of investing in the Territory.
AMEC Northern Territory Director, Neil van Drunen, said, “The Mineral Development Taskforce report identifies what reforms the Northern Territory must do to reset its investment profile.
“It is rare for a government report to directly tackle the considerable challenges faced by a jurisdiction and propose bold action – this report does that.
“AMEC has been calling on the government to reform the royalty regime to a pure Ad Valorem since the 2017 Revenue Discussion Paper that led to the hybrid royalty model. The current regime is confusing and creates a barrier to investment. An Ad Valorem is easier to understand and ensures the community receives a royalty for every mineral mined.
“We look forward to working with the community through the consultation process to ensure that the report’s recommendations are delivered to unlock the potential of the Territory,” Mr van Drunen said.
