2. $2.75b
Northern Territory mining's
contribution to the Territory's
income in 2014-15. 0.005%
Proportion of the Northern
Territory disturbed by mining
activities before rehabilitation.
12%
NT mining contributed 12 per
cent of the Territory's Gross
State Product in 2014-15. 3.0%
The mining industry's net water
consumption (Australia-wide)
in 2013-14.
$426m
The annual saving to Australian
businesses by streamlining
environmental approvals.$1.2b
Paid in wages and salaries in
the Australian mining industry
in 2014-15.
4+yrs
Minerals industry estimate
of the average time for new
environmental approvals.$656k
Mining generates around
$656,000 for the economy for
every worker employed.
5,700
Direct employment in the
Northern Territory mining
industry. 5.5%
Industry payroll spent on
training Australia-wide – five
times official benchmarks.
With more than a dozen new and proposed mining projects in the pipeline, it is critical to
position Northern Territory mining to take advantage of the next wave of economic opportunities.
NORTHERN TERRITORY MINING
3. Planned projects Project type
Nolans Arafura Resources Rare earths
Jervois KGL Resources Copper
Chandler Salt Mine Tellus Holdings Salt
Mt Todd Vista Gold Gold
Mount Peake TNG Limited Vanadium pentoxide/
Ferrovanadium
Potential projects
McArthur River Redback Copper Copper
Wonarah Phosphate Mine Avenira Limited Phosphate
Warrego Tailings Aard Metals Magnetite tailings
Ammaroo phosphate Rum Jungle Resources Phosphate
Peko tailings removal Peko Resources Magnetite tailings
Karinga Lakes Rum Jungle Resources Potash
Tennant Creek Mineral Field Emmerson Resources Gold
Tanami Upgrades Newmont Mining Gold
Planned/potential projects in the Northern Territory
Manganese $1.052 billion
Zinc/Lead concentrate $411 million
Gold $545 million
Uranium $270 million
Other minerals $480 million
Northern Territory's most valuable commodities in 2015-16
04 Foreword
06 Maximising productivity
08 Strategic infrastructure
10 The environment
12 Exploration agenda
14 Community contribution
16 Northern Territory development
18 The uranium opportunity
NORTHERN TERRITORY MINING INDUSTRY
AGENDA
FOR GROWTH
Source: www.icn.org.au/content/northern-territory/northern-territory-projects, viewed 16 June 2016
Source: Department of Mines and Energy Annual Report 2014-15
Photographs courtesy of Glencore, Energy Resources
of Australia and Newmont.
4. There has been a lot of talk about what comes after the resources boom.Often overlooked is a
4
This document sets out the policy priorities
that will help to ensure all Territorians
continue to reap the benefits of a strong
and competitive minerals industry.
A critical industry for Australia
and the Northern Territory
The minerals industry is a large contributor
to the nation’s economy and a critical
industry for Australia’s future.
The sector accounts for around half of
Australia’s export income and supports
hundreds of thousands of high wage jobs
across the country. More than 60 per cent
of those jobs are in regional and remote
Australia where the industry is the largest
private sector employer of Aboriginal
Australians.
Despite lower commodity prices in recent
years, various measures show that the
Australian minerals sector is now more than
three times bigger than it was at the start
of the 21st century.
Untapped potential in the Northern Territory
is substantial, with more than a dozen new
projects expected to come online in the
next three to five years.
Sustaining jobs growth
and prosperity
There are more than twice as many jobs
in the industry today than there were
before the mining boom, and the minerals
industry paid an estimated $165 billion
in company tax and royalties alone in the
decade to 2014-15. Evidence from surveys
commissioned by the MCA confirms the
industry pays nearly half of every dollar of
profit to governments through royalties
and company tax.
FOREWORD
2x
There are more than twice as
many jobs in the industry today
than before the mining boom.
$656k
Mining generates around
$656,000 for the economy for
every worker employed.
Agenda for growth Northern Territory Mining Industry
5. simple fact: Australia-wide, the sector is more than three times larger than it was a decade ago.
Commodities will always
have a place in Australia –
that's part of this country's
heritage. The natural resources
that this country is endowed
with are fundamental to life.
“
“
Andrew Mackenzie
Chief Executive Officer
BHP Billiton
5Foreword
The minerals sector makes a substantial
contribution to training and development
of workers. A 2013 vocational research
report indicated that nationally, the training
budget is five times more than government
benchmarks, as a proportion of payroll
(5.5 per cent).
Most mining companies in the Northern
Territory have programs to attract and train
Aboriginal workers, including Indigenous
employment strategies, mentoring, flexible
work arrangements, and workplace literacy
and numeracy training. Many also support
students from local communities through
work experience and school-based
apprenticeships.
The industry is the largest private employer
of Aboriginal employees, with an overall
rate of 16 per cent across all minerals
industries in the Territory, with some
companies and special skilled jobs (e.g. haul
truck drivers) exceeding 20 per cent.
Positioning the sector
for the next wave of growth
The challenge in 2016 is to build on this
legacy of strong mining growth and to
position Northern Territory mining for the
next wave of economic opportunities.
This will require further improvements in
productivity and competitiveness to attract
investors. There needs to be a commitment
to ensure domestic regulation does not
unnecessarily delay and push up costs on
mining projects.
With an efficient regulatory system and
energetic marketing, the resources industry
is the Territory’s best path to future growth.
Policy reforms outlined in this document are
critical to ensuring the strength, fairness
and prosperity of the Northern Territory.
6. 6 Agenda for growth Northern Territory Mining Industry
MAXIMISING PRODUCTIVITY Streamlining environmental approval
without compromising environmental
Regulatory settings
Competition for markets, investment and
talented people is intense in a world where
mineral resources are widely available.
Increased domestic costs cannot simply be
passed on to customers.
Regulatory requirements have a profound
impact on cost competitiveness and the
industry’s capacity to adapt to changing
market conditions.
Streamline approvals
In Australia the average time to obtain new
approvals is more than five years.
A one year delay can reduce the net present
value (NPV) of a major mining project by up
to 13 per cent. For large greenfields mining
projects of $3 billion to $4 billion in value,
the loss can be up to $1 million per day.
Better alignment between Territory and
federal approval processes would provide
regulatory certainty and reduce approval
timeframes.
Maintain environmental standards
The Productivity Commission concluded in
2013 that overlap and duplication can be
reduced without diminishing environmental
outcomes.
The Northern Territory’s environmental
regulatory processes should be accredited
under the Environment Protection and
Biodiversity Conservation (EPBC) Act to create
a single assessment and approval process
to ensure high environmental standards
with risk-based monitoring and reporting
arrangements.
The Northern Territory Government
should encourage the federal parliament
to approve changes to the EPBC Act to
allow these reforms.
7. 7
A 'one-stop shop' for Northern
Territory and Commonwealth
environmental and approval
processes
Efficient and effective
project approval processes
in the Northern Territory
Risk-based monitoring
and reporting requirements
to minimise costs while
maintaining environmental
standards.
POLICY AGENDA
processes to remove duplication, delays and complexity can be done
standards. This will increase business certainty and encourage investment.
Maximising productivity
Productivity survey
MCA member companies found that
environmental approvals processes and
‘green tape’ in general is the area of greatest
policy concern, followed by workplace
relations, taxes and royalties.
Addressing these concerns will grow the
mining industry in the Northern Territory.
Areas nominated as 'important' or 'very important' to improving productivity (%)
Survey of MCA member companies
Source: Minerals Council of Australia
35International trade relations
50Occupational health and safety
75Development of appropriate skills
75Environmental requirements
80Taxes and royalties
80Workplace relations framework
90Approvals processes
The average time to achieve
new approvals has increased
from 12 months to more
than four years.
“ “
MCA member company
8. Agenda for growth Northern Territory Mining Industry8
Developing infrastructure maximises
in regional and remote locations.
Unlocking regional and
remote potential
Infrastructure in Northern Australia
is a major barrier to minerals industry
growth. The impact of inadequate public
infrastructure flows through to the broader
economy and society.
Inefficient transport infrastructure
increases the cost of doing business
and limits exports. Inefficient public
infrastructure makes it difficult to attract
and retain workers and their families
in remote and regional areas of the
Northern Territory.
The role for government
The government has a role to play in public,
common-user and shared infrastructure.
Long-term investments in commerce-
enabling infrastructure can promote other
investment, including from the private sector.
The MCA NT applauds recent commitments
by both the Commonwealth and Northern
Territory governments to seal and upgrade
a number of remote roads that service a
range of industries.
Government investment in transport, water,
energy and other critical infrastructure will
significantly enhance the attractiveness
of the Northern Territory to investors in
tourism, agriculture, pastoralism as well
as mining.
STRATEGIC INFRASTRUCTURE
9. 9
Develop a priority list of
investments, maximising
return on investment across
industries
Pursue Commonwealth
funding through the Northern
Australia Infrastructure
Facility and other initiatives
Pursue jointly funded
infrastructure projects,
through private-public
partnerships across industries
with similar needs.
opportunities to attract investment across a range of industries and will unlock further growth
Better connected regions
will facilitate growth and
provide people with more
opportunities to live and
work in our regions.
“
“
Philip Davies
Chief Executive Officer
Infrastructure Australia
Strategic infrastructure
POLICY AGENDA
10. Agenda for growth Northern Territory Mining Industry10
Resource management reforms and multiple land use
Water access and management
Water availability and security of supply
are critical business risks for a range of
industries including the minerals sector.
Mine operators frequently supply, operate
and maintain their own water infrastructure
and provide a reliable water supply to other
stakeholders including neighbouring remote
and indigenous communities, farmers and
pastoralists.
Water planning and access arrangements
should account for the specific needs and
characteristics of all water users, including
the minerals industry.
Protecting biodiversity
The industry undertakes extensive
biodiversity assessments and establishes
conservation areas to offset impacts that
cannot be completely avoided or mitigated.
The industry contributes to biodiversity
conservation programs in partnership
with government and non-government
organisations, including the Bush Blitz
program in the Northern Territory.
Land rehabilitation
The MCA NT supports a flexible and
responsive security bond system
that incentivises good environmental
performance and progressive rehabilitation
by reducing the size of the bond. Operators
can reinvest these savings in innovative
technologies and ongoing rehabilitation.
The mining industry acknowledges that there
are legacy sites that need to be rehabilitated
and contributes significantly to these
through the Rehabilitation Security Levy.
THE ENVIRONMENT
Sustainable multiple land use
Land access is critical to industry growth.
A fair and strategic approach to developing
compatible and complementary uses
benefits land-owners, mineral and pastoral
lessees and other land managers.
Land access processes should be efficient,
transparent and consider all land use values
including cultural connection, conservation,
agriculture and mineral production.
ERA Ranger Mine spent
$27 million on rehabilitation
[in 2015], making excellent
progress in regards to Pit 1,
Pit 3, water management and
the revegetation of Jabiluka.
“
“
Andrea Sutton
Chief Executive Officer
Energy Resources of Australia
11. 11
Transparent and consistent
regulation for water access
that recognises the needs of
the mineral sector
Responsive and flexible
security bond system that
reduces the bond size in line
with progressive rehabilitation
and strong environmental
performance
Strategic land use
approaches that consider
landholder and industry
interests to maximise benefits
from multiple land use.
coexistence should be encouraged and supported to maximise the benefits to all Territorians.
The environment
POLICY AGENDA0.02%
Proportion of Australia's land
mass temporarily disturbed by
mining activities.
$426m
The annual saving to Australian
businesses by streamlining
environmental approvals.
3.0%
The mining industry's net water
consumption in 2013-14.
12. Agenda for growth Northern Territory Mining Industry12
To stimulate greater industry investment
search for prospective deposits, water
Exploration opportunities
Geoscience Australia estimates
around 80 per cent of Australia remains
under-explored, in particular the Northern
Territory, Queensland, Western Australia
and South Australia.
In May 2016 the Commonwealth
Government committed an extra
$100 million to stimulate exploration
through mapping mineral, energy and
groundwater potential.
Narrowing the search
The Northern Territory Geological
Survey’s Creating Opportunities for
Resource Exploration (CORE) program
provides interpreted data on the
prospectively of various regions of
the Northern Territory.
Investment such as this recognises the
critical importance of the minerals industry
to future economic growth and prosperity.
By providing data that suggest highly
prospective areas for mineral exploration,
governments can promote prospective
projects and increase investor confidence
by narrowing their search.
Dollar benefit of exploration
A 2015 ACIL Allen Consultants report
indicated that for every dollar invested
in pre-competitive programs, the rate of
return on investment is 20 to 1.
Australia ranks second in the world
at converting exploration into mineral
discoveries.
Exploration has multiple benefits in
generating valuable data not only on
target metal and non-metal resources,
but also on ground and surface water,
and flora and fauna.
EXPLORATION AGENDA
13. 13
in exploration, governments must invest in geotechnical studies to narrow the
and energy sources.
Exploration agenda
Secure funding for
priority surveys in the
Northern Territory through
the Commonwealth's ‘Exploring
for the Future' initiative
Adequately fund the NTGS
so it can continue to generate
priority geoscientific datasets
to attract greater exploration
investment in the Territory
Work with existing mineral
companies to identify priority
areas and types of surveys to
attract further investment.
More than 80 percent of the
value of minerals extracted in
the Northern Territory comes
from mining on Aboriginal-owned
land, amounting to more than
$1 billion a year ...
Approximately 30 percent
of Aboriginal land is under
exploration or currently under
negotiation for exploration.
“
“
Northern Land Council
POLICY AGENDA
$95.7m
NT exploration expenditure in
2014-15. NT’s share of exploration
is the fastest growing in the
country, but more investment is
needed to restore exploration
to peak levels.
80%
Area of Australia that remains
under-explored. Northern
Territory is particularly
under-explored, according
to Geoscience Australia.
14. Agenda for growth Northern Territory Mining Industry14
NT MINING'S COMMUNITY CONTRIBUTION
The Northern Territory’s minerals sector is
a major source of export income, economic
growth and employment, with significant
untapped potential for further growth
and expansion.
Development of the sector will play a
vital role in building sustainable regional
communities, population growth, income
growth and improved standards of living.
Making a difference
There are many examples demonstrating
the sector’s community contribution in
the Northern Territory:
MMG provides training and mentoring
support to the Borroloola-based Indigenous
business, Pandanus Development Group,
that prepares Aboriginal workers for
fieldwork with the company.
McArthur River Mine’s Community Benefits
Trust has provided more than $10 million to
64 economic, social and cultural projects in
the Gulf Region including:
• The Borroloola Song Peoples Sessions
• Li-Anthawirriyarra Sea Rangers
• The new Wunala Creche
• Local health and sporting programs.
Newmont’s Tanami Operations contributed
nearly $375 million to the economy through
procurement, payroll taxes, government
royalties, land use payments and community
projects. It employed 88 Aboriginal workers
in 2015, 12 per cent of the workforce. It
also provides financial support to:
• A Community Development Officer (three
-year appointment) to train women and
youth in the Tanami Region
• The Milpirri Festival
• Lajamanu School through the provision of
workshop tools, equipment and readers.
Energy Resources Australia paid
royalties of $17.9 million in 2015 of which
approximately $13.9 million flowed to
Northern Territory Aboriginal interests,
including local Traditional Owners. ERA is
a significant contributor to the Jabiru and
Alligator Rivers region economy:
• Generating approximately 70 per cent
of jobs in Jabiru
• Operating the airport that serves the
Jabiru township and the region’s
tourism industry
• Supporting a wide range of
community activities including the
Gurrung Community Sports Carnival,
the Mahbilil Festival in Jabiru and the
Stone Country Festival at Gunbalanya.
15. Renew the Territory’s focus
on attracting investment
and promoting development
through a targeted marketing
campaign and updated vision
statement
Provide dedicated project
facilitators to assist investors
in navigating and meeting
regulatory requirements
Collaborate and support
industry to redress
misinformation about the
value of the minerals sector to
Territorians and its progressive
environmental performance.
Rio Tinto Gove Operations committed
$2.4 million for a mine training centre to
support the first Aboriginal owned and
operated mine in the NT.
• Has local contracts in place with
Rirratjingu and Gumatj Traditional
Owners
• Funds a range of community investment
programs and initiatives up to the value
of $1 million per annum
• Maintains the Nhulunbuy Township
and airport and provides essential
services to Nhulunbuy and surrounding
communities
• Contributed $2 million seed funding to
the Developing East Arnhem initiative
and has provided up to 250 housing
assets to attract and drive economic
diversification in the region.
Sound governance that promotes investment will ensure that the mining sector can continue
to deliver a broad range of benefits to Territorians.
POLICY AGENDA
15Community contribution
16. Agenda for growth Northern Territory Mining Industry16
Mining's contribution
The Commonwealth Government recognises
that the minerals industry is a massive
contributor to economic growth and
development in the Northern Territory. Its
comprehensive strategy for developing
Northern Australia notes the minerals sector
accounts for approximately 85 per cent of
export value from Northern Australian ports.
Future growth prospects are strong, with
Northern Australia accounting for more
than 70 per cent of Australia’s known
resources for iron ore, lead, zinc, bauxite
and silver.
Realising future opportunities
The mining sector is keen to work with both
the Commonwealth and Northern Territory
governments to realise these opportunities
and endorses strategies to:
• Invest $1.2 billion, in addition to $5 billion
(over five years) to establish a concessional
loans fund for major infrastructure
development via the Northern Australia
Infrastructure Facility (NAIF)
• Reduce regulatory burden by streamlining
and simplifying assessment and approval
processes
• Provide support for native title bodies and
new surveys to resolve all outstanding
native title claims within the next decade
and simplify land access arrangements.
NORTHERN TERRITORY DEVELOPMENT
• ‘Fast track growth’ and unlock the north’s
economic potential, by delivering:
– $600 million of new funding to
improve key roads, including the
Tanami Road
– $39.6 million to upgrade airstrips
and subsidise air services in remote
Australia
– $5 million for rail freight analyses,
commencing with a pre-feasibility
analysis of the proposed Tennant
Creek to Mount Isa railway.
17. 17
The federal government’s commitment to promoting development in Northern Australia offers the
Territory concessional loans and other resources that could further develop the minerals sector.
Northern Territory development
Provide project facilitators,
streamline regulatory processes
and remove duplication with
Commonwealth Government
assessment and approval
processes
Work with the Commonwealth
Government to secure a fair
share of funds to further
develop the Northern Territory
minerals sector, through
NAIF concessional loans; road,
rail and water infrastructure
funding; and the Exploration
Development Incentive.
POLICY AGENDAMany parts of
northern Australia
remain under-explored,
with potentially large
deposits of minerals
and energy resources
not yet identified.
“
“
Australian Trade Commission
18. Agenda for growth Northern Territory Mining Industry18
The uranium market continues to grow
energy demand.Australianeedsreform
Despite hosting the world’s largest deposits
of uranium – three times more than Canada
– Australia supplies little more than 10 per
cent of the global market, down from over
20 per cent just a decade ago.
In terms of global production, Australia
has fallen from second to third place, while
export earnings have fallen from over
$1 billion in 2008-09 to $622 million in
2013-14. Other producers have gained
market share from Australia.
Scale of the opportunity
Nuclear energy is projected to grow
by between 60 and 152 per cent by 2040,
according to the International Energy Agency.
As one of only two jurisdictions in the
country to export uranium, this represents a
substantial opportunity for Australia and for
the Northern Territory in particular.
Supporting Australian producers at a state
and Commonwealth level could see the
sector provide 20,000 jobs and $9 billion
in annual export revenues by 2040.
Reform required
Australia will not reach its potential as a
uranium producer without changes to the
regulatory and policy environment.
Nationally, there are three priority areas for
reform. First, exploration and the mining
of uranium are still prohibited in Victoria.
Queensland and New South Wales permit
uranium exploration but not mining.
Second, uranium mining faces special
regulatory obstacles that are not applied
to other minerals commodities.
Third, Australia should remove the outright
prohibition on nuclear energy and allow
future proposals for nuclear power plants
to be considered on their merits.
THE URANIUM OPPORTUNITY
CHINAAustralia's trading partner will
be the largest nuclear power
generating country by 2035.
11%
Global electricity from uranium,
with nuclear demand to grow
86 per cent to 2040.
19. 19
substantially as more countries develop nuclear energy in their electricity mix to meet growing
tocapture the opportunity this offers.
Amend the EPBC Act to
remove provisions imposing
discriminatory, onerous and
unnecessary requirements on
new uranium mines
Remove the prohibition of
nuclear fuel cycle industries,
including nuclear energy
generation, from the EPBC
Act and ARPANS Act. These
industries are critical to help
meet the climate challenge.
URANIUM AGENDA
By restraining and restricting
uranium production, the
Australian economy as a whole
is not performing as well
as it otherwise could.
“
“
Professor Sinclair Davidson
RMIT University
The uranium opportunity
20. Minerals Council of Australia – Northern Territory Division
28/90 Frances Bay Drive, Frances Bay, Darwin NT 0800 P. + 61 8 8981 4486 E. info@minerals.org.au W. www.minerals.org.au
Find us on: /MineralsCouncilAust @MineralsCouncil mineralscouncilofaustralia
