Mining and petroleum royalties

Mining royalties

The Northern Territory (NT) owns all minerals, except uranium, and imposes a mineral royalty on mine production.

NT mineral royalties are profit-based.

They are calculated at the rate of 20% of the net value of saleable mineral commodities sold or removed without sale from the production unit, rather than on the gross production value or tonnage produced.

Every six months, the mining tenement holder must make provisional payments. These are based on the net value of the mined commodity sold or removed without sale from the production unit.

The mining tenement holder must then submit an annual royalty return to reconcile what has been paid against what is actually due.

Royalty payers may have to pay additional royalty if their provisional payments were less than 80% of the assessed royalty payable.

To find out more about how royalties are calculated read the Mineral Royalty Act overview (233.0 kb).

Petroleum royalties

The NT owns all reserves of petroleum onshore and in coastal waters.

In return for the right to extract petroleum, licencees pay the NT government royalties on production at the rate of 10% of gross value at the wellhead.

Licencees generally make monthly provisional royalty payments.

The licencee must then submit an annual royalty return, along with any residual payments to reconcile what has been paid against what is actually due.

Private royalties

Private royalty arrangements may be made between a mine owner and another party.

Further information

Find out more about the Mineral Royalty Act. Read the law.

Find out more about the Petroleum Act. Read the law.

Last updated: 20 March 2018