17 AMEC R eport 2018 NOR THERN TERRIT OR Y R oyalty Changes in Budget In the 201819 T erritory Budget the NT T rea surer announced the staggered introduction of a hybrid royalty model From 1 July 2019 the new scheme will require mining compa nies to pay the greater of the e xisting 20 per cent proftsbased scheme or a valuebased royalty on their gross mineral production revenue at a rate of 1 per cent in a mine s frst mineral royalty year on or after 1 July 2019 2 per cent in the second mineral royalty year and 25 per cent in the third and following mineral royalty years Prior to the announcement AMEC met with the NT T reasurer and her Chief of S taf and k ey staf in the Chief Minister s ofce to outline concerns of Members AMEC s advocacy led to a number of changes mitigating the impacts on Members including introducing a staggered ad valorem model and reducing the top rate by 0 5 per cent AMEC has continued to advocate for a change in the royalty structure to mak e the T erritory more attractive to investment Mine Management Plans AMEC advocated for the streamlining of the Mine Management Plan for Exploration to cut red tape AMEC made multiple submissions and has been in an ongoing conversation with Government about how to create a slimline version The document is considered to be in fnal draft and will be published in early 2019 Environmental R egulation review The Government delivered on an election commitment beginning the process to shift environmental approvals from the Department of Primary Industry and R esources to the Department of Environment and Natural R esources AMEC met with Arcadis Queensland based consultants who they have engaged to identify best practice environment assessment Following this review AMEC commented on the subsequent regulations Prior to the close of the consultation period the Government had already heeded wide spread industry pressure to backfip on third party appeals tightening judicial review provisions NT EP A Environmental Factors and Objectives The NT EP A published the Factors and Objectives it considers in making decisions On behalf of members AMEC responded outlining industry concerns seeking greater clarity and transparency Fracking Inquiry The 15month independent Scientifc Inquiry into Hydraulic Fracturing of Onshore Unconventional R eservoirs in the Northern T erritory handed down its Final R eport to the Northern T erritory Government on 27 March 2018 In April the Government accepted all 135 recommendations While this R eport focussed on practices in the oil and natural gas industry the regulatory repercussions of this Inquiry have reshaped regulation for mining and mineral e xploration W ater Act Amendments AMEC provided a submission on the W ater Act Amendments which will enable the licencing of water use associated with mining and petroleum activities These were introduced into P arliament NT W orkSafe R eview AMEC provided comment to the Best Practice R eview of W orkplace Health and Safety calling for greater certainty transparency and timeliness Mineral Exploration Code of Conduct A draft nonstatutory code of conduct for mineral e xploration was circulated for comment by the Government with AMEC members This draft document will set out a series of e xpected standards of engagement between mineral e xploration companies and pastoral leaseholders