Deadline set for minerals task force report as industry calls for urgent action on royalties

The government has set an August 4 deadline for consultation on its mineral development task force. Read how to have your say.

The Northern Territory government is seeking public feedback on its mineral development task force report, released earlier this year.

The report’s key recommendation involved replacing the Territory’s profit-based royalty scheme with an ad valorem scheme based on a percentage of sales.

The government on Thursday launched a “have your say” page for feedback on the royalty scheme and other recommendations from the mineral development task force.

Stakeholders have until close of business on August 4 to provide feedback on the recommendations.

The move has been welcomed by the NT’s mining sector, which has called for action on royalties as soon as possible.

NT Minerals Council executive director Cathryn Tilmouth says a simpler mineral royalty system will help attract investment to the Territory.

NT Minerals Council executive director Cathryn Tilmouth said the sector was looking forward to a simpler royalty system.

“The NT mining industry looks forward to working with the government to simplify the NT minerals royalty system, similar to how other jurisdictions operate, to help attract investment to the Territory minerals industry,” Ms Tilmouth said.

“The growth of the mining industry in the Territory can bring benefit to all Territorians, whether it’s through royalties to the government and Indigenous communities, employment and training opportunities, supply of goods and services from Territory businesses, or support for local community organisations.”

Mining Minister Nicole Manison said the task force report identified opportunities to accelerate new mining investment.

Mining Minister Nicole Manison. Picture: Adnan Reza

“Mining is one of the key drivers of the Northern Territory economy and we must stay contemporary and competitive to attract more new mining investment,” she said.

“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.

“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.”

When she released the mineral development task force report in April, Ms Manison warned the economy was approaching a royalties cliff as a result of mine closures.

McArthur River Mine is one of eight working Territory mines.

ERA’s Ranger uranium mine near Jabiru closed in 2021 and Gemco’s Groote Eylandt manganese mine and Rio Tinto’s Gove bauxite mine are expected to be mothballed by 2030.

“The Northern Territory is actually fast heading to a royalty cliff and if we don’t act fast we won’t get to see new potential mines financed,” Ms Manison told stakeholders at the launch of the report.

“Not only will everyday Territorians miss out on the benefits royalties provide after the closure of Gove and Groote but also Aboriginal Territorians will too because for every dollar paid in royalties to the Northern Territory government, the commonwealth government matches this contribution to the Aboriginal Benefits Account.

“That goes into supporting traditional owners across the Northern Territory, goes straight to economic development projects for first nations people in the NT.

“It goes to supporting first nation’s people, it goes to supporting the important work of our land councils.

“A big gap will be left in our economy and a massive opportunity will be missed if we don’t work to develop the next generation of Northern Territory mines as fast as possible.”

The Northern Territory currently has eight working mines.

To provide feedback visit www.haveyoursay.nt.gov.au