Minerals Council of Australia (MCA) on Monday welcomed the Northern Territory government's commitment to reviewing the third-party merits review processes to ensure they do not act as a barrier to investment and economic growth.

In a statement, MCA Northern Territory director Cathryn Tilmouth said industry looking to invest in the territory had long raised concerns about the misuse of third-party merits reviews to delay projects, increase costs, and undermine investor confidence.

"The MCA strongly supports the Chief Minister’s focus on delivering ‘action, security, and certainty’ for the mining industry and project approvals. These principles are essential to ensuring confidence in the NT’s regulatory framework, attracting investment, and supporting long-term economic growth," she said.

The Lia Finocchiaro-led government on Monday announced "immediate action to eliminate lawfare that is holding back the territory’s economy" by introducing the Petroleum, Planning and Water Legislation Amendment Bill 2025 in Parliament.

The Petroleum, Planning and Water Legislation Amendment Bill 2025, will remove the ability for third parties to seek merits review of decisions made under the Petroleum Act 1984, Petroleum (Environment) Regulations 2016, Planning Act 1999, Planning Regulations 2000 and the Water Act 1992.

Minister for Lands, Planning and Environment Joshua Burgoyne said the Bill would prevent third parties, with no stake in a project, from exploiting the merits review process to "deliberately sabotage" the territory’s economy.

“For far too long, those opposed to the development of the Territory have weaponised the third-party merits review process, employing litigation to delay and disrupt investment in the Territory,” said Burgoyne.

The minerals sector is a cornerstone of the Territory economy, contributing A$4.32-billion to the economy and accounting for around 13% of the gross state product. Mining provides  4 000 jobs, as well as community investment and other frontline and emergency services to remote Northern Territory.

However, with several key mining operations set to reach the end of their lifespan by the end of this decade, timely approvals of new projects will be critical to sustaining jobs, royalties, and long-term economic growth.

"The MCA supports the NT government’s objective to reduce unnecessary delays while maintaining rigorous regulatory oversight. Environmental management plans already undergo extensive assessment by the NT Environmental Protection Authority, and the current system enables third-party reviews to be lodged at minimal cost while significantly increasing financial and operational burdens on proponents," said Tilmouth.

"Delays caused by third-party reviews not only increase project costs — potentially reducing the value of a major mining investment by up to 13% for each year of delay — but also disrupt the economic benefits that these projects provide to territorians. Certainty and efficiency in project approvals are crucial to unlocking new mining projects, attracting global capital, and securing the NT’s economic future," she added.

Since 2020, there have been 18 third-party merits reviews related to decisions made by the independent Controller of Water Resources under the Water Act 1992. Almost all of these decisions were upheld after the third-party merits review process concluded.

“The cost to both the NT government and proponents of these reviews is immeasurable in both time and money,” said Burgoyne.

Examples of key territory projects put on hold owing to third party merits reviews included Fortune Agribusiness’ horticultural development on Singleton Station which has been delayed for nearly four years since the original decision on the water extraction licence was made in April 2021.

More recently, two reviews were brought forward last year by organisations opposed to the development of the onshore petroleum industry in the Northern Territory.

“The most recent merit reviews have already cost the NT government A$50 000 in legal fees, and with both reviews ongoing that cost is expected to rise,” Burgoyne said.

“For proponents the costs are even greater with scheduling delays, the costs for specialised equipment and missed revenue.”

Mining and Energy Minister Gerard Maley said the Bill, once passed and assented to, would provide greater certainty for key industries, including petroleum, mining and agriculture which are critical to rebuilding the NT economy.

“This Bill strikes the right balance between a rigorous regulatory environment, and one that removes roadblocks to investment,” he said.

“The existing legislative framework is already robust, and this reform will prevent the disruption of projects that already meet regulatory requirements by those with ideological and outside agendas.

“Our reforms will slash red tape, reduce project costs and delays, while ensuring that project proponents and applicants retain their review rights and the common right to judicial review will remain.”

Maley said delays caused by third-party merits reviews had significantly hindered territory-building projects across the agricultural, mining and gas industries, with some projects remaining in limbo for over six months.

“Such litigious behaviour and its economic consequences are devastating to investor confidence in the territory, costing territory taxpayers a myriad of employment opportunities and untold revenue,” he said.

“The Bill our government is introducing supports economic growth, strengthens investor confidence, and reaffirms our government’s commitment to harnessing the Territory’s potential to rebuild our economy."