Economic benefits

ERA makes royalty payments to the Commonwealth Government of 4.25% of its net sales revenue plus an annual rental of $200,000 for use of the land. The Commonwealth Government distributes this money to Northern Territory-based Aboriginal groups, including the Traditional Owners.

An additional 1.25% of net sales revenue is paid to the Commonwealth and distributed to the NT Government.

In 2007, ERA's royalty expenses totalled $18.3 million of which $14.1 million was distributed to NT-based Aboriginal groups. The diagram below shows the distribution of royalties by the Commonwealth Government:

ERA is the dominant contributor to the Alligator Rivers regional economy, employing more than 450 permanent full time and fixed term contract staff. Many more contractors, sub-contractors and local businesses are also dependant on the company’s business. ERA's income tax contribution in 2007 was $33.7 million. ERA is a significant employer in the Northern Territory with an annual payroll in 2007, including contracts for services, of more than $80 million.

At the end of December 2007, ERA employed 65 Indigenous staff, representing 16% of the workforce. There were a further two Aboriginal people employed under a Community Development Employment Program (CDEP). The company has provided much of the infrastructure for the town of Jabiru, the main service centre for the Kakadu National Park. The company is working with Aboriginal groups in the region to identify further employment and entrepreneurial opportunities.