Many mining companies are warming to the Northern Territory yet its government still has its work cut out to change some perceptions.
Representatives of the Northern Territory Government were in Perth last week on a national road show to promote Building the Territory’s Resource Base program.
Looking to arrest declining mineral exploration, the program among other initiatives provides $15.2 million over four years to fund public geoscientific data.
Despite its high mineral prospectivity, exploration expenditure in the Territory has fallen by $6.5 million to $42.5 million – the lowest in eight years.
Like the Northern Territory, the South Australian Government has also embarked on a program to boost mineral exploration investment, while the Western Australian Government is also spending $12 million in the next four years on geo-scientific data.
With mining contributing 23 per cent of the Territory’s $9 billion gross state product, its Mines and Resources Minister Kon Vatskalis is unapologetic for his government’s push.
“The more mines they open the more royalties will flow into the government coffers,” he said.
However, Mr Vatskalis said there were many other reasons why the Territory was attractive to miners.
Almost half of the Territory was highly prospective but virtually unexplored, while its proximity to Asia was a bonus.
“It’s a vast territory, it’s a virtually unexplored territory but it’s a territory that is close to the markets that actually want to buy our products,” he said.
Mr Vatskalis said the government was investing in infrastructure to assist mining.
About $250 million has been spent on the new Darwin port, including $14 million on a bulk loading facility, while the new Adelaide to Darwin railway is opening new mining developments.
Mr Vatskalis said there were increasing numbers of companies evaluating and developing projects in the Territory, including Bootu Creek, Territory Iron and Matilda Minerals, while more opportunities were on offer as bigger miners pulled out.
Giants Reef picked up the profitable Chariot gold mine left by Normandy, while local diamond explorer Striker looks set to give the green light on the Merlin diamond mine, acquired from Rio Tinto.
Yet, despite the growing interest, the Territory suffers from a negative perception among some miners in relation to native title and land rights issues.
Large companies such as diamond giant DeBeers and French uranium miner Cogema are understood to have experienced stiff opposition from indigenous groups to their territory exploration plans.
One director of a local exploration company with projects throughout Australia (including the Northern Territory), who wished to remain anonymous, said the company stayed out of the Territory because of Native Title issues.
“It is 10 times harder than in WA,” the director said.
Mr Vatskalis acknowledged there were problems but said much was in the past and increased resources had been allocated to indigenous liaison and mineral title processing.
He said of 860 licences issued in the past three years, 750 were still active, with no back log in relation to Native Title.
Striker Diamonds, Tanami Gold and the Association of Mining and Exploration Companies agreed there were indigenous issues but said attitudes in the territory appeared to be changing.
“It had a history of being difficult ... there is no question it has improved. There is a real precedent today with successful operating mines there,” Tanami executive chairman Denis Waddell said.
