Business news from across the Northern Territory: The latest highlights include NT mineral expenditures exceeding Australia’s total by more than eightfold, and SC dismisses legal challenge against Tamboran’s fracking approvals. Also making resource news is that Beetaloo Basin is on the brink of initiating its first gas production, and Beetaloo Basin can supply gas to Australia for the next 400 years.

Economy

NT mineral expenditures exceed Australia’s total by more than eightfold

The NT government has significantly increased its mineral expenditure in the fiscal year 2023-24 to record a new high of $227.4 million, up from the $200.1 million posted in the previous year. This surge in the Territory’s spending is notably almost ninefold the national average increase in Australia of 1.6 per cent for the period.

“The mining and resource sector will continue to play a vital role keeping Territorians employed, and hundreds of businesses across our regions engaged,” NT Chief Minister Lia Finocchiaro said in a speech during the NT Resources Week held in Darwin. “We have recently established the Department of Mining and Energy to support our key resources industry. We have also established the Department of Lands, Planning and Environment to ensure timely environmental approvals are achieved and create a better system for economic development.”

Companies

SC dismisses legal challenge against Tamboran’s fracking approvals

The Central Australian Frack Free Alliance (CAFFA) was unsuccessful in its legal challenge to stop approving the Tamboran Resources project, which involves drilling and fracking 12 wells in the Beetaloo Basin. This development occurs concurrently with the NT Resources Week Conference in Darwin, where leaders from the gas and mining industries are convening. The conference has attracted approximately 100 protesters calling for a halt to fracking activities.

CAFFA argued Tamboran’s EMP approval was “invalid” because then Environment Minister Lauren Moss failed to consider the project’s environmental impacts adequately. Chief Justice Michael Grant, however, found that the effects and risks that could arise do not extend to anything that might conceivably occur in the future or to matters contingent on the grant of a production license. He further decided that the minister didn’t need to consider environmental hazards that might emerge from a future potential project.

Resources

Fracking project in NT nearing completion

The Beetaloo Basin in the Northern Territory is on the brink of initiating its first gas production. Empire Energy is making notable progress towards starting gas production by the middle of next year. Situated approximately 500 kilometres south of Darwin, the Beetaloo Basin spans an area nearly 12 times larger than the Australian Capital Territory (ACT). After close to a decade of meticulous planning and exploration, the basin is poised to deliver its inaugural gas supply soon.

This initial gas supply is earmarked for the Northern Territory government, which urgently needs these resources to bolster its domestic energy supply. Empire Energy has highlighted the potential transformative impact of fracking on the Australian market, drawing parallels with its effect in the United States. Despite this, environmental activists continue to oppose the practice of fracking strongly.

Beetaloo Basin can supply gas to Australia for the next 400 years

Empire Energy managing director Alex Underwood said his company anticipates to commence gas production at the Beetaloo site—500 km south of Darwin— by mid-2025. Initially, the gas extracted from Beetaloo will be supplied to the NT government to bolster domestic energy needs. Following this, there are plans to extend the gas supply to the east coast to address anticipated shortages and facilitate gas exports from Darwin.

“Just in the next five or six weeks, we’ll be drilling our first full-scale pilot development well, and then, all things going well, we’ll be installing the gas processing plant just after the wet season and commencing production from the Beetaloo from the middle of next year. This is a huge resource; I think the Beetaloo contains around enough gas to supply Australia for the next 400 years,” Mr Underwood said.