Business news from across the Northern Territory: Latest highlights include the Territory’s residential building approvals dropping by 8.3 per cent, the NT Government approving Mosman’s helium and hydrogen project, and NTEX Pty Ltd awarded $699,000 for Greater Holtze clean-up works. Also making resource news is Tamboran’s Shenandoah South returning record gas flows in the Beetaloo Basin, and Rio Tinto, ERA’s major shareholder, bringing its global expertise in mine closure to the rehabilitation of Ranger uranium mine.

Local economy

Residential building approvals dropped 8.3 per cent

NT’s residential building approvals for March declined by 8.3 per cent to 22 approvals, the weakest result of the jurisdictions. Nationally, residential building approvals declined by 1.1 per cent.

Annually, the Territory’s residential building approvals fell by 46.3 per cent, the weakest result of the jurisdictions, which otherwise ranged from a fall of 17.4 per cent in Queensland to an upswing of 36.2 per cent in Western Australia. Nationally, residential building approvals decreased by 7.3 per cent.

Year-on-year, the NT’s residential building approvals in the Territory decreased by 34.7 per cent to 389, compared with a fall of 12.1 per cent to 161,527 nationwide. For the period, the value of residential building approvals fell 8.5 per cent to $340.5 million, compared to a decrease of 3.6 per cent to $87.3 billion nationally.

NT Government approves Mosman’s helium and hydrogen project

Mosman Oil and Gas Ltd is now ready to proceed with the exploration of its farm-in project EP 145 with Greenvale Energy Ltd after getting final approval from the NT Government. The farm-in agreement between the two companies was signed in October last year. This allowed Greenvale to take a 75 per cent interest in EP 145 by funding seismic and drilling activities up to $5.5 million.

As part of the agreement, Greenvale will pay Mosman $160,000 within five business days. It will also cover the costs of the third and fourth-year work programmes at EP145. It also includes seismic acquisition and processing, estimated at $2 million, to be completed by August 2024. It also includes drilling a well, with expenses dictated by various factors, targeted for completion by August 2025.

EP 145 is located in the Amadeus Basin of the NT. It is known for high helium concentrations, with significant content found in most tested wells. Prospective resource estimates for EP 145 suggest substantial quantities of gas, helium and hydrogen.

NTEX Pty Ltd awarded $699,000 for Greater Holtze clean-up works

Territory company NTEX has been awarded a $699,000 contract to clean up dumped cars and other illegal waste in the Holtze area. It comes amid plans to develop 11,000 lots. On the outskirts of Darwin, land in the greater Holtze area has been identified as the next urban residential development. As part of the first stage of land development, the Territory Government is building district-level infrastructure such as roads, water and sewer mains, and electrical feeders.

“Clean-up works occurring at Holtze are the next stage in getting lots ready for new builds,” Chief Minister Eva Lawler said. “For more homes to be built we need more land. To do this, we are implementing the Bringing Land to Market report.”

The first Holtze land release of 46ha will see more than 530 residential lots of varying sizes as well as community-purpose land. A total of $186 million will be invested in land development in the Northern Territory to meet housing needs, the government said. A developer for the Holtze land release is expected to be announced soon.

Resources

Rio Tinto appointed as Ranger rehabilitation manager

Rio Tinto, ERA’s major shareholder, has brought its global expertise in mine closure to the rehabilitation of the Ranger uranium mine. Rio Tinto will manage all aspects of Ranger’s rehabilitation under a management services agreement (MSA). By implementing the MSA, Rio Tinto will be able to leverage ERA’s work so far in the design, scoping, and execution of closure projects. This will be combined with its technical expertise.

“The Ranger Rehabilitation project is a complex and globally significant rehabilitation and after extensive consideration, the independent board committee has concluded that there would be significant value for ERA in directly leveraging Rio Tinto’s mine rehabilitation, project management experience and capabilities,” ERA chairman Rick Dennis said.

As part of the agreement, Rio Tinto will provide free carryover of some services. This includes the first twelve months of costs associated with its management team, as well as access to internal technical expertise. Under the MSA, Rio Tinto and ERA are required to mitigate risks and minimise costs in accordance with ERA’s responsibilities.

Shenandoah South returns record gas flows from the Beetaloo Basin

In the Beetaloo Basin, Tamboran says it has recorded the highest flow rates ever, confirming the potential for future fracking. Tamboran said final results from its Shenandoah South 1H well showed the 90-day flow test produced rates of 5.8 million cubic feet per day. The rates are 65 per cent higher than any other well in the Beetaloo Basin. The final investment decision is expected by mid this year, subject to funding and necessary government approvals.

The company said the million acres of deep shale in the Beetaloo West could deliver more than 13 million tonnes of gas per year for 40 years from a single landing zone. “The results have validated the company’s view that the deepest regions of the Beetaloo Basin are the most productive. They are expected to deliver premium economics and returns when compared to shallower areas within the region,” Tamboran chief executive Joel Riddle said.