Massive Royalty Increase an Economic Disaster for the Territory

WEST PERTH, Australia, April 20 -- The Association of Mining and Exploration Companies issued the following news release:

This morning the Northern Territory Government announced major changes to the Territory's mineral royalty regime delivering a massive increase in royalties for mining projects.

"This massive royalty increase will be an absolute disaster for the Northern Territory economy," said Warren Pearce, Chief Executive Officer, Association of Mining and Exploration Companies (AMEC).

"This decision immediately threatens the viability of $6 Billion of new mining projects, that would have delivered 4,000 new jobs and hundreds of millions in new royalty revenue for the Government."

"Many of these mining projects will simply no longer go ahead."

"At a time when the Northern Territory desperately needs industry investment to stimulate the economy and create jobs the Government has effectively taken the decision to close the door on investment."

"The mining industry in the Northern Territory was finally showing signs of recovery. This massive royalty increase will put an end to the economic recovery before it begins."

"It will drive mining investment away to other States, and Territorians will be denied thousands of new jobs, millions in new royalties, and will watch their economy continue to decline."

"The Northern Territory is already struggling to attract investment and is widely recognised as a high cost jurisdiction, which is one of the major reasons for the decline in mineral exploration and mining activity in the Northern Territory over the last decade."

"This decision will make it one of the most expensive places in the world to develop a mining project."

"Regrettably, today's decision may well see investors and industry turn their back on the Territory for another decade."

"The Territory needs to grow its economy and the best opportunity to do this is through the greater development of the resource sector."

"There is still time for Government to reverse this disastrous decision and industry have offered to engage with government to develop a modified proposal," said Mr Pearce.

View the factsheet below for further information.

NT Royalty Increase Factsheet (javascript:__doPostBack('ctl01$TemplateBody$WebPartManager1$gwpciNTRoyaltyIncreaseFactsheet$ciNTRoyaltyIncreaseFactsheet$FileLink',''))