The NT Independent is providing an update of resource news from across the Northern Territory. Highlights this week include ballooning costs to rehabilitate Ranger urnanium projects now tipped at over $2 billion, more executives quitting FFI, Tamboran’s drilling at Beetaloo Basin showing favourable results, and more.

Another FFI executive quits

Former Reserve Bank deputy governor Guy Debelle – who has been with Fortescue Future Industries (FFI) for only 18 months – has quit his role. It is the third departure in an exodus of senior figures (chief financial officer Christine Morris and chief executive Fiona Hick) in only a week.

Fortescue executive chairman Andrew Forrest said the change in the company’s leadership was necessary to transition towards greener energy. Departures from FFI’s leadership team have rocked the company since last year. But former chief minister Michael Gunner is still employed.

“I said at the start of this transition (to cleaner energy) 12 people would change,” Mr Forrest said. “I announced that three years ago … if you’re not fully capable of managing the transition or don’t want to, they leave, simple as that.”

Territory critical minerals start-up Tivan has recruited Mr Debelle to its board.

Tamboran’s drilling at Beetaloo Basin showed very favorable results, company says

Tamboran Resources (TBN) announced that the Shenandoah South 1H (SS1H) well at the Beetaloo Sub-Basin in the Northern Territory has intersected 90 metres of high-quality Mid Velkerri B Shale with strong dry gas shows, representing the thickest section of Mid Velkerri B Shale in the Beetaloo Sub-basin.

TNB CEO Joel Riddle said the new rig utilized at SS1H reached TD of the pilot hole in 21.5 days, drilling at 153 metres per day, a new record for wells drilled below 3,000 metres in the Beetaloo Sub-Basin.

At present, the company is drilling a 1,000-metre horizontal section within the shale formation ahead of a stimulation program of up to 10 stages over a 500-metre section planned before year-end.

Ranger uranium project’s rehabilitation balloons to $2.18 billion

The rehabilitation cost for Energy Resources of Australia (ERA) to rehabilitate the Ranger uranium mine has ballooned to $2.18 billion, an increase of $368 million, from the previous estimate of $2.2 billion, a feasibility study found. The figure is well above the initial estimates from 2019 suggesting the cost would be only $973 million.

ERA said more analysis of the findings of the feasibility study will be required to determine if suitable mitigations or alternative solutions can be found to keep the cost down.

In the half-year to June, the company suffered a net loss of $331 million, with $114 million spent on rehabilitation activities during the above-mentioned six-month period. At the end of June, the company had a rehabilitation provision of $1.4 billion.

Tamboran concludes Falcon farm-in carries obligations

Tamboran Resources Ltd has finalized its 2014 Falcon farm-in agreement. Under the Beetaloo Joint Venture (BJV), Tamboran and Daly Waters Energy LP will hold a 77.5 per cent (38.75 per cent each) interest and operatorship of the EP 76, 98 and 117 permits in the Beetaloo Sub-basin, with Falcon to hold 22.5 per cent.

All parties have committed to fully fund their full working interest of future cash calls at the Shenandoah South 1H well (SS1H) in EP 117, which commenced drilling on August 1, 2023.

“Meeting the Falcon farm-in agreement cost cap is a major milestone for the BJV,” Tamboran CEO Joel Riddle said. “The five vertical wells and three horizontal wells drilled, as part of the carry commitment, since 2014 have delivered key information of the continuous nature and productivity of the Mid Velkerri across the Beetaloo Basin.

“We look forward to working closely with the BJV to accelerate the development of our low reservoir CO2 gas resources within the Beetaloo Sub-basin, which is well positioned to help alleviate the foreseen East Coast gas shortfall.”