The Minerals Council of Australia welcomes the Northern Territory Government's commitment today to reviewing third-party merits review processes to ensure they do not act as a barrier to investment and economic growth.
Industry looking to invest in the Northern Territory have long raised concerns about the misuse of third-party merits reviews to delay projects, increase costs, and undermine investor confidence.
The MCA strongly supports the Chief Minister's focus on delivering 'action, security, and certainty' for the mining industry and project approvals. These principles are essential to ensuring confidence in the NT's regulatory framework, attracting investment, and supporting long-term economic growth.
Minister for Lands, Planning and Environment Josh Burgoyne's commitment to assessing the relevance and impact of these processes is an important step toward ensuring the NT remains a competitive destination for investment.
The minerals sector is a cornerstone of the Territory economy, contributing $4.32 billion to the economy and accounting for around 13 per cent of the gross state product. Mining provides around 4,000 jobs, as well as community investment and other frontline and emergency services to remote NT.
However, with several key mining operations set to reach the end of their lifespan by the end of this decade, timely approvals of new projects will be critical to sustaining jobs, royalties, and long-term economic growth.
The MCA supports the NT Government's objective to reduce unnecessary delays while maintaining rigorous regulatory oversight. Environmental Management Plans already undergo extensive assessment by the NT Environmental Protection Authority, and the current system enables third-party reviews to be lodged at minimal cost while significantly increasing financial and operational burdens on proponents.
Delays caused by third-party reviews not only increase project costs - potentially reducing the value of a major mining investment by up to 13 per cent for each year of delay - but also disrupt the economic benefits that these projects provide to Territorians.
Certainty and efficiency in project approvals are crucial to unlocking new mining projects, attracting global capital, and securing the NT's economic future.
Cutting red tape and making approvals faster will boost confidence, attract investment, and create more jobs. The MCA stands ready to work with the NT Government to ensure these changes deliver a stronger economy and more opportunities for all Territorians.
