The Northern Territory is looking to revamp its mineral royalties scheme after a recent report declared it uncompetitive and a deterrent to investment.
The region currently employs a profits-based arrangement to collect royalties on mining projects.
It will now consider changing to a regimen based on the underlying value of the assets, a change it says is simple, competitive and modern.
"Mining is one of the key drivers of the Northern Territory economy and we must stay contemporary and competitive to attract more new mining investment," Mining and Industry Minister Nicole Manison said.
"Royalties are the biggest source of revenue and we want the best deal not only on the amount of royalties, but also the economic benefits mining generates throughout the Territory, especially in our regional and remote areas."
In its recent report, the government's Mineral Development Taskforce proposed a range of measures to ensure the NT could reach its target of a $40 billion mining sector by 2030.
They included the speedy development of new mines, more streamlined and transparent access to land, and a simplified regulatory process.
In particular, it said the royalties regimen had to be revamped, and recommended a new scheme be introduced by 2024.
It found that if the current system was left in place, the government's revenue from royalties would fall significantly after 2030, when two large mines are expected to close.
"To preserve this revenue base, immediate strategic actions need to be taken to ensure sustained royalty revenues past 2030," the taskforce said.
Before making any changes, the Territory government has invited public comment, with the views of stakeholders expected to shape the design of a new scheme.
Ms Manison said the Territory had abundant natural resources, including 15 of the critical minerals the world needed to tackle climate change.
"Right now, we are in a position to set our course for a mining industry that is not only profitable to the Northern Territory economy but also supports the energy transition to renewables," she said.
The government's consultation period runs until August 4.
