The Territory’s $40 billon economy by 2030 “won’t happen without the growth of this sector” said NT Minister Mark Monaghan, addressing more than 300 members of the extractive industry yesterday.
The other target with the same deadline – 50 per cent renewables – never crossed his lips when he opened AGES 2024, the 25th annual conference in Alice Springs.
Mr Monaghan said gas from Beetaloo is “on the cusp of changing the Territory forever” as Empire Energy and Tamboran Resources are expected to make their final investment decision on pilot production activities this year.
The Beetaloo Basin, about half way between Alice Springs and Darwin, is controversial because of the fracking there.
According to Ian Scrimgeour it is believed to contain more gas than the Ichthys field which is estimated at more than 12 trillion cubic feet (TFC).
The value of a one TCF contract delivered over a several year term would be $9 billion to the purchaser. That would put the value of the Beetaloo gas at $108 billion.
Dr Scrimgeour, head of the Northern Territory Geological Survey for more than 15 years and recently awarded a Public Service Medal, is the highly respected organiser of the AGES conferences.
He gave an overview of the mining industry to the Alice Springs News.
Which new mines, gas or oil deposits have the money and are ready to start operations in the The Centre in the current year?
Dr Scrimgeour: At Warrego near Tennant Creek Northern Iron have commenced construction of a plant to process the tailings there to produce magnetite.
Alice Springs News: Are there any mines for rare earths and other critical minerals needed for electricity generation or storage?
Dr Scrimgeour: Arafura at Aileron are close to making an investment decision for the Nolans project.
Alice Springs News: How much does the department spend on exploration and makes the results available to the industry at no charge?
Dr Scrimgeour: The Resourcing the Territory Program is funded at $9.5m. Of that about $3m is for competitive grants for the exploration industry. The remainder is focussed on generating the new data to stimulate exploration and we give all that away for free.
Alice Springs News: The total value of mineral production in the Northern Territory was $4.4 billion last year. In the 2023/24 Budget royalties amounted to $367m. Apart from this, how much of the mining money stays in the Territory?
Dr Scrimgeour: I don’t have the figures on that. The $4.4 billion is just the value of production, the value of material sold [not the costs].
Alice Springs News: What was the best news from this year’s AGES?
Dr Scrimgeour: The diversity of opportunities and new discoveries of graphite and rare earths have been the main highlights.
Alice Springs News: In Central Australia?
Dr Scrimgeour: No, the recent graphite and rare earths discoveries are more in the northern half of the Territory. However, we are seeing very strong interest in rare earths exploration here in Central Australia.
Update 18/4/24
$367m in royalties on $4.4b value of material sold would be 8.3 per cent ad valorem (on the total value of the ore, oil or gas produced, not the profit or loss made).
Update 18/4/24
Mr Monaghan and Chief Minister Eva Lawler issued this media release:
The Territory Labor Government is focused on growing our economy and natural gas is a key pillar in our comprehensive plan.
As announced on the ASX, Empire Energy has successfully raised over $46m enabling them to progress drilling in the Beetaloo Sub-Basin for natural gas.
The drilling will comprise of a pilot development well for pre-production testing. Empire Energy is anticipating commencement of commercial production by 2025 with the first supply of natural gas going into the Northern Territory Market.
This announcement highlights international confidence in the Beetaloo Sub-Basin and in the Territory’s economy moving forward, with an estimated $17 billion increase in economic activity through the Beetaloo Sub-Basin alone.
This article appeared on Alice Springs News on 17 April 2024.
