Securing best value for Territory resources
![Securing best value for Territory resources](/sites/default/files/styles/1200_wide/public/uploads/images/2024/0e6a3192.jpg?itok=wv4LZXWe)
A change to the way mineral royalties are calculated in the Northern Territory came into effect on 1 July.
This new ad valorem scheme will accelerate new mining projects in the NT by changing the way new mining companies compensate the Territory for non-renewable resources.
The four royalty rates that will apply are:
- 7.5% for primary treatment of minerals,
- 5% for concentrates and ore dressing,
- 3.5% for secondary treatment including chemically refined minerals and,
- 2.5% for final treatment or advanced metallurgical processed minerals.
The Northern Territory has 17 of the world’s most in demand critical minerals, including lithium, rare earths, graphite and copper.
An independent report ranks the Territory in the top 10 globally for investment attractiveness, and 3rd globally for mineral potential behind Western Australia and Nevada in the United States.
Mining is a significant economic driver of the Territory’s economy – contributing to thousands of local jobs, and supporting funding towards our hospitals, schools and important social infrastructure.
The demand for minerals, including critical minerals is expected to continue to grow to support renewable energy, battery storage and high-technology industries.
The change in royalty scheme in the Territory represents significant economic and strategic opportunities for the NT to become a reliable downstream processing hub of minerals to support the transition to a decarbonised economy.