The mining industry says exploration companies will be the most affected by new Northern Territory legislation that takes effect today.

The Minerals Titles Act aims to increase transparency about the environmental impacts of mining, by increasing obligations about what needs to be reported.

The Minerals Council says it agrees with the changes in principle, but is mindful of the potential for excessive red tape.

The Council's executive director, Peter Stewart, says the changes increase the Government's ability to review and regulate exploration companies.

He says exploration costs are already higher in the Territory, due to harsh seasonal weather.

"Those challenges add to the costs and decision-making of explorers, so I guess if these changes are too onerous ... does it mean that explorers go to other places and explore where life is a bit easier?

"Again I think the government understands that and is working with us to make sure that doesn't occur."