Business news from across the Northern Territory: The latest business highlights include incoming Chief Minister Lia Finocchiaro welcomed by the NT gas industry and the NT’s cruise season kicking off.  Also making resource news is ERA challenging the government decision that rejected the extension of its Jabiluka lease, and South32 pledges $125 million to Groote Eylandt repairs.

Economy

Gas industry welcomes new Finocchiaro government

Australian Energy Producers NT director David Slama congratulated the newly elected Chief Minister Lia Finocchiaro, sharing his enthusiasm to collaborate with her government on enhancing the regional economy via a five-point strategy. “A new term of parliament offers the opportunity to deliver on the economic promise of the Beetaloo Basin as appraisal gas moves into full-scale production, providing energy security and economic benefits for the region,” he said.

The industry’s strategic plan, titled “Powering the Territory,” aims to ensure energy security for the NT, capitalise on gas-related economic and employment opportunities, streamline approval processes for new gas supply, support and incentivise low-emission technologies, and foster the LNG export industry, the group has said.

The NT’s natural gas provides 86 per cent of power generation, contributes $5.8 billion in annual economic activity, and supports over 6,000 local jobs, according to AEP.

 

Tourism

Northern Territory’s cruise season kicks off

Late August marked the arrival of the Coral Princess in Darwin, heralding the start of the NT’s cruise season with its 2,500-plus passengers and crew. Setting sail from Cairns and heading towards the Kimberley coast, the ship represents the season’s inaugural significant vessel arrival, notably earlier than the typical October commencement. The cruise ship Carnival Splendour also arrived over the weekend, straight from a refurbishment in Singapore, bringing up to 3,000 guests and 1,100 crew members eager to delve into Darwin’s vibrant tropical metropolis.

This season, Darwin will host an unprecedented 113 ship visits, with a projected 80,000 visitors stepping ashore, including passengers from two massive cruise ships, each with a capacity of more than 4,000 people, the government said.

 

Resources

Jabiluka mining lease refusal ”secret” and ”unfair”, ERA claims

Energy Resources Australia (ERA) is actively working to overturn the government’s decision to reject the extension of its Jabiluka lease. Additionally, the company seeks to obtain $210 million in funding due to the dwindling of its financial reserves. ERA reported that it had a brief 10-minute meeting with Federal Minister for Resources Madeleine King a month before she advised against the renewal of its mining lease in the NT, a move ERA deems “unfair.”

ERA has initiated legal proceedings against the Commonwealth and NT governments for their refusal to extend ERA’s lease over Jabiluka for an additional 10 years. The Commonwealth and the NT governments still need to submit their responses to the Federal Court. The case is scheduled for hearing on October 28.

Jabiluka, located within the grounds of Kakadu National Park, is home to one of the world’s most significant and most valuable uranium deposits. However, the Mirarr traditional owners have actively opposed its development.

 

South32 pledges $125 million to Groote Eylandt repairs

South32 has committed $125 million for repairs at its Gemco manganese operation on Groote Eylandt in the NT, following massive damage from Cyclone Megan earlier this year. The extensive infrastructure damage includes the harbour and a vital bridge. South32, owning a 60 per cent share in the joint operation with Anglo American, which holds 40 per cent, has allocated an extra $125 million for the repairs in the financial year 2025.

Gemco’s production of Australian manganese fell 34 per cent to 2.32 million tonnes in the 2024 financial year, following the temporary shutdown of operations in March. The company said underlying earnings before interest and taxes (EBIT) plunged by 77 per cent to $61 million in 2024, with an additional $93 million incurred in idle capacity and remediation costs.

Production is expected to reach one million wet metric tonnes to 3.20 million tonnes in the 2025 financial year and increase to 3.2 million tonnes in 2026. However, the disruption has led to a 23 per cent increase in operating unit costs, rising to $2.32 per dry metric tonne unit in 2024. South32 said operating costs for the 2025 financial year were subject to the pace of recovery and production volumes in the year’s second half.