Mining slams NT Govt: ‘putting at risk investment in Territory with royalty change’

The peak body representing the Territory mining industry has slammed the Gunner Government accusing it of putting at risk potential mining investment in the Territory

Drew Wagner Minerals Council of Australia NT chief executive Drew Wagner – Tuesday, 25 February 2014 – 12.40PM SUPPLIED

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THE peak body representing the Territory mining industry has slammed the Gunner Government accusing it of putting at risk potential mining investment in the Territory

after catching the industry by surprise with changes to amend the Mineral Royalties Act.

Minerals Council of Australia NT executive director Drew Wagner said the changes have been announced without any consultation with the mining industry.

“The government’s sudden plans to change the law signal an unfair massive $4 million tax grab … it plans to manipulate tax rules which will discourage the mining investment needed to drive the post-pandemic reconstruction and damage the job prospects of Territorians,” Mr Wagner said.

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“There is more than $5 billion of proposed investment right now, identified in the Territory Economic Reconstruction Commission report and this is not going to help those proposed investments.

“The Government is ignoring the advice of its own post-COVID reconstruction commission that ‘The Territory Government needs to increase industry confidence to invest by providing certainty, clarity and the necessary frameworks for investment’

“The respected Fraser Institute ranking of investment destinations released yesterday further shows how fragile confidence is with a drop in the NT’s standings.”

Mr Wagner said the government’s changes, which will be made in parliament today, are a response to it losing a court battle that ruled in favour of a company that took the NT Government to the Supreme Court to protect its ability to deduct its security bonds levy from their overall royalty structure.

“The changes the NT Government are pushing through come despite a clear Supreme Court 2019 ruling that security management deposits are a legitimate operating cost to be deducted from royalties,” Mr Wagner said.

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“The NT Government states that it wants more mining investment, yet its plan will undermine investment confidence and further put at risk the prospects of many thousand mining workers in the Territory.

“Security levies are important, and MCA NT has repeatedly called on government to work with the industry on allocating monies put aside for rehabilitation in a considered program that addresses environmental challenges and provides new job opportunities.

“The Government should put its planned giant tax grab on hold and talk to the industry about a fair solution which does not damage future investment and jobs.”

Comment from the NT Government is being sought.