Levy and security

Under the Mining Management Act 2001, all mining operators are required to pay a security and an annual levy.

The security is to cover costs if the Northern Territory (NT) Government needs to take action to prevent, minimise or rectify environmental harm:

  • caused by mining activities on or off the site
  • for completion of rehabilitation.

The amount payable is based on the disturbance likely to be caused by the mining activities. A 10% discount also applies, to offset the impact to the industry.

The security is refundable (or refunded) when the mining operator fulfils their rehabilitation obligations.

Read more about the security.

To fund projects that address the NT's legacy mining liabilities, operators must also pay an annual levy.

The levy is 1% of the security and is non-refundable.

Operation of the levy

The levy is based on the level of security held for each operator’s site as of 1 July each year.

The levy amount will not change, even if the security increases in that 12-month period.

The costs used in calculating the security amount are:

  • set by the NT Government
  • based on third-party costs.

For example, the costs that would be incurred by the NT Government if it has to step in and do the work itself.

This results in rates that are higher than those that the mining operator would incur if they had done the work themselves.

Use of levy revenue

The levy is used to support the Mining Remediation Fund (fund).

The purpose of the fund is to hold money in trust to be used by the government to:

  • minimise or rectify environmental harm caused by legacy mines
  • address risks from legacy mining to minimise the liability to the NT.

Contact

For more information, email lmu.ditt@nt.gov.au or read about the Legacy Mines unit.


Last updated: 14 November 2022

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