Mining and petroleum royalties
This page has information on the different types of royalties, how they are calculated and paid.
The Northern Territory (NT) owns all minerals, other than uranium, and imposes a mineral royalty on mine production.
NT mineral royalties are profit-based. They are calculated at the rate of 20% of a mine's net value, rather than on gross production value or tonnage produced.
Every six months, the mine owner must pay the royalties it estimates are due, based on the net value of the mined commodity sold or removed from the mine site.
They must then submit an annual royalty return to reconcile what has been paid against what is actually due.
A mine owner may have to pay penalties if their estimate and payments were less than 80% of the actual amount due.
Royalties are not charged on the first $50,000 of net value.
The NT owns all reserves of petroleum onshore and in coastal waters.
In return for the right to extract petroleum, producers pay the NT government royalties on production at the rate of 10% of gross value at the wellhead.
Petroleum producers generally make monthly provisional royalty payments. Any additional payment is made with the annual royalty return that reconciles the provisional payments against the actual amount due.
Private royalty arrangements may be made between a mine owner and another party.
For information about the Mineral Royalty Act, the Petroleum Act, royalty return forms and guidelines, go to the Department of Treasury and Finance website.
Last updated: 28 November 2017