Business news from across the Northern Territory: The latest highlights include another NT Major Project collapsing, the government promoting energy sector advancements at an energy conference and Northern Iron leaving behind $55 million in debt after shutdown, while administrators are called into Lucapa diamond mine.

Resources

Major project Desert Bloom hydrogen plant put on hold

The $15 billion Desert Bloom hydrogen project proposed for Central Australia has been put on hold by proponents, marking yet another NT major project failing to get off the ground. The hydrogen project was given major project status by the NT Government in December 2021, with claims it would create more than 1,000 full-time jobs during construction and more than 120 full-time operational and maintenance jobs.

The Desert Bloom project was initiated by Aqua Aerem, backed by Osaka Gas and Sanguine Impact Investment as investors, showcasing a technology that captures water from the atmosphere in arid environments. Aqua Aerem announced it had recently paused the project due to the underlying challenges of attracting financing and willing buyers for the renewable energy source.

Australia’s green hydrogen sector has struggled to gain traction, with 99 per cent of a $100 billion supply pipeline remaining stuck at the conceptual phase. Most of the planned capacity for ongoing projects has come to a halt, and fewer than 30,000 tonnes per year have progressed to a final investment decision or begun construction, as reported by Rystad Energy.

Economy

NT promoting energy sector advancements at Brisbane conference

The NT Government is looking to partner with major energy explorers and producers to create long-term regional opportunities. They are showcasing the region’s gas production and energy infrastructure potential at the 2025 Australian Energy Producers Conference in Brisbane. Key highlights include the Beetaloo Sub-basin, known for its shale gas resources, and the upcoming Territory Energy Link to connect Beetaloo to Darwin.

Deputy Chief Minister Gerard Maley hosted the “NT Government’s Breakfast with the Beetaloo,” an exclusive industry event to showcase the Territory’s strategic advantages in energy production to national stakeholders. The event gathered key stakeholders, such as Santos, the Australian Energy Producers Association, the Menzies Research Centre, and delegates from over 120 companies.

Companies

Northern Iron leaves behind $55 million in debt after shutdown

Northern Iron, the operator of the Warrego mine, is in voluntary administration with over $55 million in debts. Creditors may face delays until the end of the year for settlements, with hopes for a deed of company arrangement (DOCA) to maximise the benefit for stakeholders affected by the collapse.

The company’s largest creditor, Cargill, has a secured debt of approximately $32.8 million. In addition, there are 62 unsecured creditors and 11 with personal property securities registrations, along with $30,000 owed to employees on unpaid leave. In January, Northern Iron shipped over 47,000 tonnes of magnetite concentrate to Asia, with the project expected then to produce up to 1.2 million wet tonnes annually with processing starting in October 2024.

Administrators called into Lucapa diamond mine

Administrators are looking to sell the diamond mine of Lucapa Diamond Company Limited, which is currently under voluntary administration. This raises concerns about the revival of the Merlin diamond mine near Borroloola, which was operational from 1985 to 2003 and produced over 500,000 carats, including Australia’s largest diamond. Lucapa acquired it for $8.5 million in 2021 and planned to invest $25 million to extend its lifespan, aiming for $1.6 billion in revenues and a production target of 2.1 million carats over 14 years.

“There is potential to deliver further significant value through the operational opportunities and from mineral resource extensions, underground development and exploration as the kimberlites continue at depth and there are a significant number of anomalies that have the potential to deliver new source discoveries,” Lucapa managing director Stephen Wetherall said.