Exploration grants totalling $3.7m have been issued to dodge mining cliff

The Territory government has awarded $3.7m in exploration grants to almost 40 projects. Check out the full list.

Critical minerals and gold are targeted in the latest round of the NT government’s $9.5m Resourcing the Territory program.

Thirty-eight projects undertaken by 30 resources companies have been awarded exploration grants, with 28 companies searching for critical minerals.

In total $3.7m in grants were awarded in the 16th Resourcing the Territory round announced on Wednesday.

The 38 co-funded projects is a record and more than doubles the average 15 grants issued every year.

With question marks hanging over a slew of NT-backed major projects and a “royalties cliff” looming with the expected closure of key mines, the Territory government has prioritised resource production for sustained economic growth.

Prodigy Gold managing director Mark Edwards with Mining Minister Nicole Manison

Mining Minister Nicole Manison said the focus on critical minerals reflected global resource demand and gold was fundamental to a strong mining sector.

“Gold is a really important foundation of any good mining industry,” Ms Manison said

“The Northern Territory govenment is backing in the mining industry. We have 15 of the critical minerals the world needs already proven and another 13 that we believe are highly prospective.

“Resourcing the Territory grants help get more attention on the Northern Territory and help fast track more mining activity in the Northern Territory.”

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The grants are split into four categories: greenfield drilling in new projects, brownfield diamond drilling in previously explored sites, regional-scale geophysics and innovative targeting.

NT-based Prodigy Gold received two co-grants - a regional-scale contribution to explore the Tanami North gravity project and support to drill a brownfield diamond drill prospect at the Tregony diamond project.

Prodigy received about $158,000 in total from the two grants and is expected to begin exploration when the Tanami dries after debilitating floods earlier this year that also disrupted operations at Newmont’s mine.

Prodigy managing director Mark Edwards said the company was “privileged” to receive the co-grant.

“One is a geophysical survey in northern Tanami and we’ve also got a drill hole which we’ll put into our new Tregony resource we released earlier this year,” Mr Edwards said.

Gold sourced from the Prodigy Gold mine at the Tanami

“Our focus is on gold exploration here in the Northern Territory. We’ve been based here since 2009, and solely focused on gold in the Tanami and Lake Mackay regions of the Northern Territory.”

Previously known as ABM Resources, Prodigy Gold produced gold at the Old Pirates mine in the 2010s which is now in care and maintenance.

The Resourcing the Territory program is the country’s second-largest exploration grants program behind Western Australia.

Ms Manison recently announced a 12-month consultation phase around shifting the NT’s royalty regimen from a hybrid to ad valorem model, which imposes a charge based on a percentage of the sales invoice.

In 2022-23, mining royalties contributed $367m in royalties out of the Territory’s total tax take of $1.04bn.

By 2026-27 the Territory’s mining royalties are forecast to slump to $286m unless new projects are activated.

The NT currently has eight operating mines.

Originally published as Exploration grants totalling $3.7m have been issued to dodge mining cliff