NT miners want change: Plunge in the Territory’s resource exploration

The Government has played down a steep decline in NT resource exploration, but industry has revealed the true picture. Read what’s dropped.

Spending on minerals exploration in the Northern Territory fell by almost half compared to this time last year PIcture: Supplied

Spending on minerals exploration in the Northern Territory fell by almost half compared to this time last year, New Australian Bureau of Statistics data has revealed.

December quarter figures released last week showed mineral exploration expenditure in the Northern Territory dropped by 27 per cent over that three-month phase, a 45 per cent decline from the same time last year.

The dramatic decline prompted comparisons between the Territory’s exploration approvals system compared with Western Australia’s, a key competitor for resources projects, which has streamlined the process.

Minerals Council NT executive director Catherine Tilmouth said low-risk exploration applications can take up to a year to approve in the Territory, compared to about a fortnight in Western Australia.

She said she hoped the appointment of a Territory Co-ordinator to oversight development approvals would help fast-track the process.

“While minerals projects in the Territory offer great potential, they are not a guaranteed pipeline to success,” Ms Tilmouth said.

Minerals Council NT’s chief executive Catherine Tilmouth

“Millions of dollars in potential exploration and mining project investment are lost every year due to rising costs, regulatory burden and declining productivity.

“Approvals of exploration licences in the Northern Territory are significantly slower than in WA, where a streamlined online system allows approvals in 15 days.

“In contrast, NT explorers must complete 200-page applications, with exploration licence approvals on Native Title land averaging 7.7 months.

“Many explorers have been waiting for over 12 months for their approvals to conduct low risk exploration activities, delaying projects and jeopardising funding.”

She hoped the imminent appointment of Stuart Knowles as Territory Coordinator would help the approvals process.

“A Territory Coordinator will help create a streamlined regulatory process by having an independent oversight on regulatory processes and time frames and have the authority to make meaningful changes if issues arise, increase private investor confidence in the NT, and ultimately benefit the future economic growth of the Territory.

“A strong minerals industry not only supplies essential minerals and metals for a clean energy future, it supports a vibrant supply chain of goods and services providers and revenue for key areas like health, education, housing, and policing.”

In addition to the Territory’s own comparison decline, our share of exploration expenditure across Australia fell from 17 per cent in 2022 to 10 per cent in 2024.

Minerals exploration in the NT is down. (Photo by Carla Gottgens/Bloomberg via Getty Images)

Mining and Energy Minister Gerard Maley attributed the exploration drop to a downturn in prices for critical minerals.

He said total expenditure for the 2024 calendar year reached $176m, down 23 per cent on the previous year “but still the fourth-highest annual expenditure on record”.

“The transition to a new environmental licensing regime also impacted activity, but with regulatory changes now in place, the sector is expected to stabilise in 2025.”

Ms Tilmouth picked through the government spin, saying there was more to the investment drop than the resource price.

“There is more to the decline in exploration in the NT than simply the commodity price,” she said.

“The ABS data is further evidence that the failures in the approval process after the rushed transition to environmental (mining) licence scheme last year.

“The petroleum exploration expenditure figures highlight that industry requires certainty in regulations to drive investment. Removing red tape and simplifying government processes for the minerals industry will not only supply essential minerals and metals for a clean energy future, it drives economic growth and revenue for key areas like health, education, housing, and policing.

“The minerals industry has long been the heavy lifter of the NT economy, and renewed support for mining will continue to drive benefits for the community.”

Originally published as NT miners want change: Plunge in the Territory’s resource exploration