The Northern Territory Minerals Development Taskforce’s report has said that while the Northern Territory has world-class mineral deposits, the Territory is underexplored.
The report has recommended the removal of barriers that limit investment in the NT to ensure the territory can become a leading minerals supplier.
“The NT has significant potential to become one of the world’s leading jurisdictions for critical minerals as the globe transitions to net zero emissions in the next two decades,” the Minerals Council of Australia (MCA) said.
As the world moves toward net zero, the NT’s supply of lithium, cobalt, nickel and zinc could be vital.
The findings from the report include:
- Speedy development of new mines is critical to achieving targeted economic outcomes
- Industry views access to land as a significant risk
- Regulatory processes have a significant impact on project economics
- The Territory needs to recognise the new remote workforce paradigm and capitalise on what it can control
- There is an infrastructure gap in the Territory
- The success of the mining industry relies on its ability to align with community expectations
- The Territory’s royalties regime is uncompetitive and a deterrent to investment.
- Governments have a significant role in supporting projects to reach final investment decision
- The Territory is well endowed with minerals that are the building blocks for a clean and technology enabled future.
“A royalty system that operates more like those in other successful Australian jurisdictions is an essential step,” the MCA said.
“The only way to ensure returns for all – whether its royalties to government and Indigenous communities, wages and goods and services for NT business or returns on capital – is by making the NT system easy to navigate, simple and transparent.
“The minerals sector contributes significantly to the NT economy, second only to the federal government.
“Without growth on the minerals sector, the NT is unlikely to reach its ambitious target of a $40 billion economy by 2030.”