Budget Paper 1994-95 No.6 Northern Territory Economy
Tabled Paper 2156
Tabled Papers for 6th Assembly 1990 - 1994; Tabled Papers; ParliamentNT
Tabled by Barry Coulter
Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.
Mining in 1994/95 o f 5.6% to $1.76 billion. Growth in these years will be underscored by the Mt. Todd gold mine and the planned commencement o f the M cArthur River lead/zinc/silver mine in 1995. Gross operating surplus (gross profitability) and wages, salaries and supplements o f the Territory mining sector were split 89.0% and 11.0%, respectively, compared to the national average o f 70.5% and 29.5%, respectively. The divergence in gross profitability reflects the Territory mining sector being based narrowly on high value-for-quantity mineral and energy resources, and the highly capital-intensive methods o f extraction used in Territory mines. W hile the value o f production o f the Territory mining sector is significant, the Territory retains only a m inor portion o f gross operating surplus generated by this sector because: mining operations are largely owned and financed by companies and financial institutions based elsewhere in Australia or overseas, so that profits, interest and dividends largely accrue outside the Territory; and a high proportion o f taxes paid by the sectors enterprises accrues to the Commonwealth Government in the major form o f company taxes, uranium royalties (in large part redirected to the Territory), and resource rent on offshore oil production. Accordingly, the major economic benefits generated by the mining sector and captured in the Territory take the form o f wages, the provision o f some goods and services and royalties collected under Territory legislation. As the Northern Territory Government levies royalties on a profit basis, royalty collections fluctuate from year to year in line with profits. Estimated royalties to be received in 1993/94 amount to $29.3 million. O f these, mineral royalties account for $26.6 million and energy royalties $2.7 m illion. A further $2.0 m illion is expected to be received from the Commonwealth as a grant in lieu o f royalties paid direct to the Commonwealth by Ranger Uranium. For 1994/95, royalty receipts are expected to decline to $26.4 million, made up o f mining royalties o f $23.6 million and energy royalties o f $2.8 million. Minerals Known mineral resources include (see Mineral and Energy Production map): bauxite, with the third-largest bauxite mine in Australia at Gove;