A proposed cotton farming project on the WA/NT border will be the first major land clearing application in the Territory to be considered by the Federal Government under national environment laws, while the owners of Claravale Station have suspended their massive land clearing plans, the Environment Centre NT said.

AAM Investment Group has referred their Ord 3 development proposal in the NT’s west to clear over 3,200 hectares of native vegetation at Spirit Hills Station to federal authorities, which will assess the potential impacts on the environment and local ecosystems.

ECNT executive director Kirsty Howie said the move follows “sustained correspondence” between the ECNT and the federal Environment Department. She called on federal Environment and Water Minister Murray Watt to take action against habitat destruction in the Territory.

“This is a big win for Territorians, with two massive concessions from pastoral station owners in the space of a week, but we can’t stop here,” she said.

“The plan for a huge new dam at Spirit Hills shows once and for all that claims that the cotton industry will be rain-fed are a myth. The cotton industry is after the Territory’s free water, and the dam-rush is only just beginning.”

AAM Investment Group plans to develop up to 100,000 hectares for cotton production in the Territory, specifically within the Keep Plains Agricultural Development Area, historically known as Ord 3.

This initial phase includes a referral for land clearing at Spirit Hills Station, which involves over 24,500 hectares and the construction of a large dam to utilise water from the Keep River.

The nearest regional centre, Kununurra, has a $60 million cotton gin to support agricultural expansion. However, Ms Howey said the development poses significant environmental concerns, including for several endangered species and habitats.

The deadline for public objections is set for August 8, 2025.

“The responsibility for ensuring a proper environmental assessment should not fall to community groups acting as unofficial watchdogs,” Ms Howey said. “Pastoral station owners are on notice that the cowboy culture of bulldozing must stop.”

Meanwhile, Top End Pastoral Company has halted plans to clear nearly 3,300 hectares at Claravale Station that include a ghost bat habitat.

The Pastoral Land Board initially approved the clearing on June 13, 2025, without a federal environmental assessment, raising concerns for threatened species.

Ms Howey said following pressure from the ECNT and Environmental Justice Australia, the company suspended the clearing permit.

Claravale has been described as a “biodiversity hotspot” home to vulnerable species, including ghost bats, of which there are fewer than 10,000 left in Australia.

Despite the company having been found to have cleared land illegally, the NT Environment Minister dismissed prosecution against the owners, prompting concerns about environmental enforcement by the Finocchiaro Government.

The ECNT is now urging Minister Watts to ensure proper assessments of deforestation in pastoral lands, which comprise 45 per cent of the Territory and necessitate cooperation with Traditional Owners.

“Our client expects the owners of Claravale Station to do what the law requires and seek assessment of their bulldozing plans at Claravale under our national environment laws,” Environmental Justice Australia lawyer Laura Dreyfus said.

Ms Dreyfus said it is remarkable that, until now, Australia’s Environment Minister has not evaluated any Territory land clearing applications under federal laws. She also highlighted her concern that decision-makers in the Territory are hastily approving land clearing without considering the environmental consequences.

“Australia’s national environment laws give the Environment Minister power to step in when they think land clearing may have a significant impact on threatened species, but this power has never been used in the NT,” she said.

NT Farmers, which represents the NT cotton industry, was contacted for comment but did not respond.