New Century Resources has secured the first royalty deferral agreement with the Queensland Government under its resources regional development framework (RRDF).
Under the agreement, New Century can elect to defer royalties for a period of three years and repay them over the following three-year period.
The RRDF was introduced by the state government in May 2017 to encourage development in the north-west minerals province and the Galilee and Surat Basins.
It was introduced to stimulate business opportunities and job creation to benefit Queensland.
New Century has engaged with the Queensland Government since the program was announced, with a view to securing an agreement under the framework.
The agreement is subject to full documentation and execution of terms, which are expected to be completed over the coming months.
New Century commented that the landmark agreement recognised a “commitment to its innovative value proposition, which seeks to deliver tangible economic mine rehabilitation benefits.”
Managing director Patrick Walta said he was pleased to continue a long history of successful engagement with stakeholders in the Gulf of Carpentaria.
“Since taking over the operation in 2017, New Century has focussed on enhancing benefits for the local community, including Traditional Owners, local industry, the Burke and Carpentaria Shires, and to Queensland more broadly,” Walta said.
“We appreciate the Queensland Government’s strong support in highlighting how this innovative model can successfully achieve sound mine rehabilitation practises for the industry into the future.”
Queensland Premier Annastacia Palaszczuk said the first royalty deal under the RRDF was a step in the government’s commitment to open up the north-west minerals province.
“We know the north west minerals province is rich in minerals like zinc, copper, cobalt and gold as well as potential deposits of rare earth minerals that will play an increasing role in renewable electricity generation and battery technology,” Palaszczuk said.
“We want to see new projects in the north west minerals province, but also new technologies that can extract more value from former projects like this.”