AMEC regional manager Bernie Hogan said the NT government had missed an opportunity to show its support for mineral exploration and the mining industry.
“The new taxes being imposed on exploration and mining companies in the guise of a mine rehabilitation levy are far worse than the system proposed by the state government two weeks ago,” he said.
“There is no relief for these companies which are now required to pay their usual environmental bond plus an additional 1% tax for operating in the territory.”
NT Mines and Energy Minister Willem Westra von Holthe announced the addition of the levy last week ahead of the budget but AMEC and other organisations had urged the government to reconsider.
A 1% levy on new and existing environmental rehabilitation security bonds will come into effect from October 2013, which the government claims will raise approximately $A6.45 million in its first year, with amounts in subsequent years being dependent on the dollar amount of security bonds held.
Funds raised will go to a mining remediation fund to address legacy mine liabilities.
“The Country Liberals government wants to provide a healthy environment for the next generation of Territorians,” Westra von Holthe said.
“We must act now to start repairing old mining sites around the territory.”
Hogan said the NT government had not consulted with AMEC or the industry before the changes were announced, with AMEC believing the Western Australian mine rehabilitation fund model was the most appropriate solution for the NT.
AMEC said the new tax regime appeared to finance services that were provided in other states, such as processing permits and financing the geological survey.
“On top of this and without any warning, the Northern Territory government announced they will remove deductions that encourage companies to set up headquarters in the territory and limit the ability of companies to internally trade between divisions,” Hogan said.
Hogan warned that investment could be driven away from the NT as a result of the taxes.
“AMEC calls on the Northern Territory government to review these decisions immediately and engage properly with the exploration and mining industry to investigate other systems that will protect the territory’s unique environmental values without crushing industries seeking to assist the territory to fulfil its economic potential,” he said.
When announcing the levy last week, Westra von Holthe said companies had a role to play in protecting and improving the environment.
“Mining companies are corporate citizens – they have a social responsibility to improve the environment around them,” he said.
“As a government we are prepared to partner with industry to see this long-term environmental problem addressed.”
