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Northern Territory passes mineral royalties bill - 4 hours ago

The Northern Territory Legislative Assembly has passed a bill that will change the way mineral royalties are calculated in the Territory.

The Mineral Royalties Bill 2024 will introduce an ad valorem royalty scheme for the calculation, payment and administration of mineral royalties for new mines that commence from 2024.

An ad valorem royalty model is based on the principle that royalty is applied to only the value of the mineral resource extracted.

“Growing the Territory’s economy and getting the best value for our natural resources is a key focus of the Territory Labor Government,” NT Chief Minister and Treasurer Eva Lawlersaid. “Mining is a key driver of the Territory economy.

“An ad valorem scheme is simple, competitive, and delivers investment certainty, allowing new mines to commence operations in the Territory, creating significant economic benefit, higher employment and more royalties for Territorians.”

The NT Government passed theMineral Royalties Bill 2024 following the release of the Mineral Development Taskforce’sfinal reportin April 2023, which recommended for the Territory’s current royalty scheme to be replaced with an ad valorem scheme.

The soon-to-be implemented scheme will apply a 7.5 per cent royalty rate for the least refined minerals, a five per cent rate for concentrates, a 3.5 per cent rate for chemically refined minerals and a 2.5 per cent rate for final or highly processed minerals.

The current mineral royalties scheme under theMineral Royalty Act 1982 will be exempt for all existing mines that were in production in the 2023 calendar year.

“Lower royalty rates will apply to projects that have committed greater investment and created more employment in the Territory by mining minerals that will be processed right here, creating supply chains and boosting local jobs,” Lawler said.

“Royalties are the largest form of own source 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.”

TheMineral Royalties Bill 2024will take effect from July 1.