Business news from across the Northern Territory: Latest highlights include a multi-rail corridor flagged that would include the NT, Santos awarding Darwin LNG project construction to UGL, and NT’s most awful suburbs for rental stress revealed. Also, making resource news is the Rinehart-backed Arafura mining company receiving $840 million in taxpayer aid for the NT project, and Core Lithium CEO quits amid downturn of battery metal prices.
Industry
Multi-rail corridor raised for NT
An industry briefing was held at Darwin’s Lizards Hotel detailing plans to develop a multi-user rail corridor in the NT linking Queensland’s coal with WA’s iron ore. The meeting outlines Project Iron Boomerang, a large-scale “nation-building plan” that could see up to $55 billion in investment and thousands of jobs generated over several decades across the NT,m it has been reported.
The plan aims to develop two steel precincts, one on the east coast and the other on the west, to manufacture slab steel for export. The project also ends the cycle of digging and dumping coal in Asia and develops Australia’s manufacturing capability, proponents say.
The East-West Line would link the Bowen Basin coal mines in north Queensland through a 3,300 km rail line through the NT with WA’s Pilbara iron ore mines.
The plan was praised by NT Infrastructure Commissioner Louise McCormack, who said some infrastructure was already in place in the Territory to facilitate the ambitious plan.
Construction
Darwin LNG project construction awarded to UGL
UGL will provide brownfield construction services for the Darwin LNG Life Extension project by energy company Santos, starting immediately. Following its contract with the Department of Defence, the new contract boosts UGL’s presence in the NT to provide strategic advice, planning, supply management, operations, and maintenance for the Australian Defence Force’s fuel network, the company said.
“UGL is looking forward to supporting the broader community through providing opportunities for local employment and local businesses to support the project,” UGL managing director Doug Moss said.
UGL will focus on Aboriginal engagement, local employment, local supplier capability, and providing value to the communities in which it works. The project is also seen to create 100 jobs.
Real estate
Most awful suburbs for rental stress revealed
The March Rental Pain Index (RPI) from Suburbtrends indicated that more than 15 per cent of suburbs in the NT are in extreme rental pain. Rental stress is calculated by analysing rent changes, advertised rents, vacancy rates, vacancy change and rental affordability. The latest report reviewed 36 NT suburbs, with six considered an extreme RPI higher than 75 out of 100.
Topping the list was the suburb of Leanyer, with an RPI of 89 in the last 12 months, a 0.33 per cent vacancy rate, and a rental affordability score of 24 per cent. In second place was Karama with an RPI of 88 based on its 4 per cent yearly rent increase, 0.48 vacancy rate and 28 per cent rental affordability. Alice Springs suburb of Larapinta came third with an RPI of 85, an average rent increase of 7 per cent in the past 12 months, a 1.45 per cent vacancy rate and rental affordability sitting at 25 per cent. On the top list were Bakewell, with 83 RPI; Rapid Creek, 81 RPI; and Larrakeyah, with 81 RPI.
As a whole, the NT had an RPI of 59.06, behind ACT with 47.64 but ahead of Tasmania with 62.47; Victoria, 79.21; New South Wales, 79.27; South Australia, 82.57; Queensland, 82.63; and Western Australia with an RPI of 84.29. The national RPI stood at 78.62.
https://www.realestate.com.au/news/revealed-darwins-worst-suburbs-for-rental-stress/
Resources
Rinehart-backed Arafura gets $840 million in taxpayer aid for NT project
The Federal Government, in an effort to break China’s stranglehold on global critical minerals, has granted an $840 million bundle of loans and grants to support the Gina Rinehart-backed Arafura Rare Earths company in developing an NT mine and refinery.
The funding is Labor’s most significant single financial pledge for the critical minerals sector, which expands federal taxpayers’ exposure to rare earths mining and processing by more than 50 per cent by more than $2 billion.
Arafura’s planned mine, 125 km north of Alice Springs, would produce elements like neodymium (Nd) and praseodymium (Pr) in oxide form. Those commodities are essential for decarbonization and defence since they are used to make cars, wind turbines, and fighter aircraft.
The company said the mine and processing facility construction would cost about $1.68 billion.
Core Lithium CEO quits as battery metal prices retreat
Core Lithium, whose Northern Territory mine has gone into hibernation, has announced a $167.6 million half-year loss, along with the departure of its chief executive, Gareth Manderson and independent director and chair of the risk and sustainability committee, Andrea Hall.
The company paused operations at its Finniss mine south of Darwin at the start of January, citing the 75 per cent reduction in lithium prices, but said it would continue to process ore stockpiles. At the end of the year, the company had 289,000 tonnes of ore stockpiles and expected it to take about six months to process this material.
“Core remains debt-free with a cash balance of $124.8 million at the end of the period. The group has moved to reduce costs and preserve cash. Core will strictly assess capital allocation with the aim of emerging from the current market conditions in the best condition possible,” the company said in a statement.
https://ntindependent.com.au/core-lithium-announces-large-loss-ceo-resigns/
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