The facts

As the regulator, the NT Government works with the mining and resources sector to make sure industry is following these laws and doing right by the Territory.

These regulations safeguard the Territory’s natural resources, including the land, water, and wildlife.

By enforcing these regulations, government works with industry to ensure it operates responsibly, minimising its impact on the environment and preserving the natural beauty of the Territory for generations to come.

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The Territory is well positioned to supply long-term demand for critical minerals such as lithium and rare earths, which are crucial components of clean-energy technologies such as batteries, solar panels, and wind turbines.

The Northern Territory Government is backing the production of these critical minerals and recognising their importance in achieving its goal of net-zero emissions by 2050. These minerals are vital in developing clean energy technologies. The government offers incentives and programs to support critical mineral production, including streamlined regulation and licensing processes, funding for exploration and development, and partnerships with industry and research organisations. By supporting the production of these minerals, the Northern Territory is positioning itself as a leader in the global transition towards renewable energy.

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The Code of Practice: Onshore petroleum activities in the Northern Territory provides minimum standards that the onshore petroleum industry in the Northern Territory must adhere to.

The Code applies to all regulated activities including those associated with:

• both conventional and unconventional oil and gas
• exploration, appraisal and production activities.

Environment Management Plans are now required by law to demonstrate how proposed activities will comply with the Code noting activities will not be approved if they are not compliant.

For more information go to: Onshore gas in the Northern Territory | Department of Environment, Parks and Water Security

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This means Territorians can buy their own home, get ahead, and enjoy the great Territory lifestyle.

Mining and resources employs  more than 5000 Territorians directly, supports hundreds of small businesses across our regions, and delivers millions of royalty dollars annually into social infrastructure, such as schools and hospitals.

The sector, both in exploration and production, is a significant contributor to the Territory’s economy - currently contributing close to a quarter of the Territory’s gross state product.

It creates jobs, helps build our regions, and grows wealth for Territorians.
Industry also supports the provision of vital services like electricity, water, and telecommunications into communities. Many of these businesses work with Aboriginal communities to ensure they also benefit from the development of resources.

The mining and resources industry is a significant contributor to economic growth and prosperity in the Territory and continues to play a crucial role in shaping the Territory’s future.

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Mineral resources in the Territory are the property of the Territory. The government grants rights to mining  companies or individuals allowing them to extract and sell mineral resources. In return, the government imposes a financial obligation on the miner, known as a royalty.

The revenue generated from mineral royalties is used by government to fund public services, infrastructure developments, and other initiatives that benefit the Territory.

Mineral royalties are a very significant component of the Territory’s own-source revenue, having accounted for approximately 30% of total tax and royalty revenue collected over the past six years.

This is an average of $347 million per year.

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Natural gas is essential to a low-carbon future, critical to the Territory’s sustainable economic future, and the global imperative to reach net zero emissions by 2050.

While renewables are critical for the future of energy production, natural gas is central to a transitional energy mix that will deliver increased investment, innovation, and long-term economic benefits.

As well as supporting the transition to renewable energy, it can complement renewable electricity generation by quickly responding to changes in intermittent generation from renewable sources.

It means gas will help keep the lights on in our homes, hospitals, schools, and local businesses.

The Territory has a significant role in supplying secure and affordable energy nationally and internationally, and our prospective onshore gas resources will support our energy security during the transition to renewables.

Natural gas also has a critical role in the Territory’s sustainable economic development pathway, presenting opportunities to establish a Territory gas-based processing and manufacturing sector.

The NT Government is investing in the Middle Arm Sustainable Development Precinct to cater to industries including renewable hydrogen, carbon capture, and storage, critical minerals processing, and advanced manufacturing.

Following the completion of all 135 recommendations from the Hydraulic Fracturing Inquiry’s Final Report, the NT Government has put in the regulatory framework that ensures an onshore Gas industry will operate to the highest standards and world’s best practices.

The Framework will safeguard the environment, ensure greater transparency and accountability, provide jobs in our regions, and provide economic benefits for all Territorians.

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All mining operators must pay a security and levy to address the remediation of mines in the Territory.

Mining operators must provide a security deposit to the Northern Territory Government if they carry out mining activities authorised under the Mining Management Act 2001. The mining security safeguards against any potential environmental harm from mining activities, either on or off the site. It also covers the costs of any rehabilitation work that needs to be carried out. The security deposit amount is determined based on the extent of disturbance likely caused by the mining activities, as specified in the approved mining management plan. As of 1 February 2024, the department is holding $1,744,622,856.78 in mining securities.

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The Precinct will help the Territory and Australia more broadly, to reach net zero emissions by 2050 by using this CSIRO-supported technology.

The Middle Arm Sustainable Development Precinct is a world-class industrial precinct designed for low-emissions industries such as renewable hydrogen, advanced manufacturing, and carbon capture and storage (CCS). With the potential to become a significant player in the global CCS market, it has the necessary infrastructure and land area to support a large-scale CCS hub. The precinct is already connected to existing pipelines for transporting captured CO2. Its strategic location and favourable government policies make it an attractive option for investment in the CCS hub, creating thousands of jobs and diversifying the Territory economy with new export opportunities.

Middle Arm Precinct - Carbon Capture PDF (215.9 KB)

It will also inject billions into the Territory’s economy, supporting local businesses and providing social funding for schools, hospitals, and roads.

The Middle Arm Sustainable Development Precinct is being developed sustainably and in compliance with environmental regulations. The Northern Territory Government has commissioned various environmental studies, including a strategic environmental assessment (SEA), a detailed environmental impact statement (EIS), and a cultural heritage assessment, to assess the potential impact of the precinct development. The government has also established regulations that cover air quality, water quality, noise, waste management, biodiversity conservation, and cultural heritage protection.

Government is committed to ensuring that the precinct meets or exceeds these regulations. To ensure community support, public meetings and workshops have been organised, and feedback from stakeholders has been used to inform the planning and development of the precinct.

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