Territory Stories

Budget Paper No5 Northern Territory Economy 1998/99

Details:

Title

Budget Paper No5 Northern Territory Economy 1998/99

Other title

Tabled Paper 382

Collection

Tabled papers for 8th Assembly 1997 - 2001; Tabled papers; ParliamentNT

Date

1998-04-28

Description

Tabled by Michael Reed

Notes

Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.

Language

English

Subject

Tabled papers

File type

application/pdf

Use

Copyright

Copyright owner

See publication

License

https://www.legislation.gov.au/Series/C1968A00063

Parent handle

https://hdl.handle.net/10070/295415

Citation address

https://hdl.handle.net/10070/395002

Page content

MINING The mining industry in the Northern Territory makes the single most significant contribution to Gross State Product (GSP) of any industry. In 1995-96, the mining industry accounted for 11.7% of the Northern Territorys GSP, and although this is considerably lower than a year earlier it is approximately two and a half times the national figure of 4.6%. Production forecasts and current exploration expenditures suggest that activity in the Territorys mining sector will decline in the current and next financial year. Mining is a highly capital intensive activity, and employment levels are low relative to other sectors of the economy. As such, only one percent of national employed persons were employed by the industry, despite its contribution of 4.6% to Gross Domestic Product (GDP) in 1995-96. In the Northern Territory this capital intensity is as pronounced. While mining generated 11.7% of GSP, its employees only represented 3.7% of the total work force. These figures do not include minerals processing. Table 8.1 shows the contribution of mining to each jurisdictions GSP and to Australias GDP. Minings large contribution to Territory GSP reflects the Northern Territorys resource endowment and highlights the significance to the Territory economy of the mineral and energy sector. The total value of production in 1996-97 was $1 666 million, an increase of 7.4% on 1995-96. Figure 8.1 shows the actual and forecast value of production from the Territorys mining industry for the years 1990-91 to 1999-00. Production is forecast to decline by $141 million in 1997-98 to an estimated $1 525 million, primarily as a result of declining production of base metals, gold and oil. The value of energy production declined in 1996-97. Reserves and production rates of the Jabiru and Challis oil fields continue to fall as they approach the end of their productive lives. Despite increased uranium production, a significant fall in prices resulted in a lower value of production for uranium in 1996-97. The expected commissioning of Jabiluka uranium mine in 1998 and the Laminaria/Corallina oilfield in late 1999 should increase the value of energy mineral production significantly, especially in 1999-00. Offsetting the decline in the value of energy production was growth in the value of metall ic and non-metall ic mineral production. The 1996-97 value of metallic and non-metallic mineral production was $1 328 million, an increase of 14% over 1995-96. The value of metall ic and non-metallic mineral production in 1997-98 37 Chapter 8 % OF GSP Western Australia 17.6 Northern Territory 11.7 Queensland 5.1 Victoria 2.9 Tasmania 2.9 South Australia 2.5 New South Wales 2.2 Australian Capital Territory 0.1 Australia 4.6 Table 8.1 MINING Source: ABS Cat. No. 5220.0, 1995-96


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