PERTH (miningweekly.com) – The Association of Mining and Exploration Companies (Amec) said on Tuesday that it was disappointed with a Northern Territory (NT) government proposal to levy a new tax on the mining and exploration industry.

The state government outlined the proposed levy in the upcoming budget, under which the value of the NT’s environmental bonds would be reduced by 10% and a yearly tax of 1% would be levied on the remaining 90%.

Amec CEO Simon Bennison said on Tuesday that there had been very little consultation and that the industry body had been given less than a week to respond to the new Rehabilitation Levy.

“This shows a real lack of understanding on the needs of this vital industry. The proposal should be reviewed immediately, as it does not send the message that the NT is ‘open for business’ as the government frequently states,” Bennison said.

“This additional cost is essentially punishing companies who are operating efficiently today, for other companies’ legacies in the past. If previous NT governments neglected to enforce environmental conditions, it is not logical to tax those that are currently attempting to bring economic development and royalties to the NT.”

Bennison noted that the proposed levy was sprung on the industry with no time to respond and no detailed analysis of the business case.

“It is impossible for the NT government to have made a balanced, informed decision on the effects of this new tax on miners and explorers in the NT.”

Amec has called on the NT government to remove the tax and engage the sector to implement systems that maintained high environmental values, covered environmental liabilities and did not punish current mining and exploration companies in the NT.

“The new Mining Rehabilitation Fund model introduced in Western Australia has been suggested by Amec as a far better solution and Amec looks forward to a sensible decision from the Minister and the NT government,” said Bennison.