New mineral royalty laws dubbed ‘tax grab’ by industry will remove ability for miners to score discount

MINING companies in the Northern Territory won’t be able to get a discount on their royalties bills by deducting the amount they’ve paid in security fees, under new laws Changes to the Mineral Royalty Act drew the ire of industry heavyweights before the law was even introduced to parliament, with Minerals Council of Australia NT executive director Drew Wagner labelling it an “unfair tax grab”. Jetstar announces Darwin to Bali travel dates Move to question Gunner on obstruction of the press shutdown Hundreds evacuated from community due to rapidly rising waters The law changes come after the NT government lost a Supreme Court challenge in 2019 brought about by Groote Eylandt Mining Company, in which the company argued how much it paid in mining security fees should be deducted from its overall royalties bill. Court documents show the Groote Eylandt Mining Company paid $976,242 a year in security fees in 2013/14 and 2014/15. The government uses the levy to pay for regulatory costs and managing legacy mines. The levy was first introduced by the CLP government in 2013. Chief Minister Michael Gunner said the law changes were about “safeguarding” the NT’s mineral royalty revenue base. Mr Gunner said it was “undesirable” that royalty payments were being used to effectively offset a levy “that should otherwise” be paid by miners. HOT NEW DEAL: Read everything for 28 days for just $1 The laws, once passed, would come into effect from July 1 this year. Mr Wagner said the industry had not been consulted about the changes. “The NT government states that it wants more mining investment, yet its plan will undermine investment confidence and further put at risk the prospects of many thousand mining workers in the Territory,” he said.