Darwin Port operator Landbridge’s financial problems have raised the prospect of the NT CLP Government terminating its lease with the company, the NT Treasurer has indicated, with the matter set to be discussed with the Federal Government tomorrow.

Treasurer Bill Yan issued a statement on Wednesday afternoon, stating that the NT Government has written to Chinese-owned Landbridge Group, “seeking further information about their financial status and ability to meet their payment obligations”.

“This additional information will guide the Territory Government’s next steps regarding operations at the Port,” Mr Yan said.

“Our immediate focus is to ensure the Port remains operational while its longer-term future is confirmed.”

Landbridge Infrastructure Australia – the local subsidiary operating the Port – submitted its latest director’s report to ASIC this month, which shows the company is yet to turn a profit after its controversial 99-year lease of the Darwin Port in 2015 for $506 million under the then-Giles CLP government.

The report showed the company lost $34 million in the 2024 financial year, on top of previously reported accumulated losses of $233.4 million since 2015.

Last year, the port operator’s ongoing viability was secured by parent company Shandong Landbridge Group, which issued a letter of financial support for 12 months should there be a cashflow problem.

However, the latest report shows the parent company is restructuring its debt and owes a $107 million bond.

The Port deal made international headlines after the deal was raised by former US President Barrack Obama to then-prime minister Malcolm Turnbull and has repeatedly been questioned by defence and national security experts.

Landbridge is owned by Ye Cheng, a Chinese businessman with ties to the Chinese Communist Party. The Federal Albanese Government reviewed the port deal after being elected in 2022, but raised no concerns about national security and continued to permit the lease.

Mr Yan said he will be meeting with Federal Infrastructure, Transport and Regional Development Minister Catherine King to discuss the CLP’s concerns about Landbridge in Canberra on Thursday, “given the Port’s national significance”.

“The Northern Territory is reviewing our rights, and our future action will be made in the best interests of Territorians,” Mr Yan said.

Landbridge had sought a $500 million loan from the Export-Import Bank of China (Exim) in 2017.

Former treasurer Scott Morrison claimed at the time that a clause in the Port agreement would allow the NT Government to terminate the lease with Landbridge in the event of a loan default, which he said would mean the Port would “not come under the effective control of a Chinese bank”.

Darwin Port non-executive director Terry O’Connor told Sky News on Wednesday that Landbridge was pleased with the operations at the Port, which he said had improved year over year despite the losses, and that he was confident the parent company would continue to prop up the Port after its finances are restructured.