Budget 2013/14 Northern Territory Economy
Tabled paper 295
Tabled Papers for 12th Assembly 2012 - 2016; Tabled Papers; ParliamentNT
Tabled by David Tollner
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.
Department of the Treasury and Finance
126 Mining and Manufacturing 2013-14 Budget The Frances Creek iron ore mine, owned by the Singaporebased NobleGroup, is located near the town of PineCreek. The mine commenced production in June2007 and has longterm agreements with Chinese steel producers to supply up to 2milliontonnes of iron ore perannum. The ore produced is transported by rail to the Port of Darwin and shipped to China. Production from the mine is heavily influenced by iron ore prices, with Noble Group cutting production and stockpiling ore during periods of falling demand. In the first half of 201213, iron ore prices fell to USD$81atonne, the lowest level since the global financial crisis, mainly due to Chinese steelmakers running down inventories as economic growth in China slowed over the first half of 2012. Strengthening economic growth, supported by ChineseGovernment infrastructure stimulus spending, has led to a recovery in iron ore prices. Despite volatile prices, the value of iron ore production in the Territory is estimated to increase from $149million in 201112 to $155million in 201213 (up by 3.4percent) with growth supported by an increase in production due to low levels of rain during the wet season. Ilmenite is the primary ore from which the element titanium is extracted and it is also used in the manufacturing of titanium dioxide for paint pigments, pharmaceuticals and cosmetics. Australian Ilmenite Resources (AIR) is expected to begin production of ilmenite at its SILL80 mine located in the RoperRiver region in the Junequarter2013. AIR plans to extract 100000tonnes of ilmenite concentrate per annum and increase to 200000tonnes perannum within threeyears. The ore will be transported to the Port of Darwin by truck for export to China. Energy Substantial energy resources in the Territory include natural gas, liquefied petroleum gas (LPG), condensate (a light hydrocarbon liquid used to manufacture petrol and other liquid fuels), oil and uranium. The Territorys major energy resource operations include: offshore gas and liquids operations (including condensate and LPG) at BayuUndan; offshore oil operations at LaminariaCorallina; the Kitan oilfield, which commenced production in the thirdquarter of 2011; the Montara project, which is currently under development and expected to commence production in the Junequarter2013; and Ranger uranium mine. Other undeveloped energy resources include Greater Sunrise, Evans Shoal, Petrel/Tern/Frigate, and Crux and Argus in the TimorSea, uranium resources at Jabiluka and the Angela and Pamela deposits in the Amadeus Basin of Central Australia. Mineral Sands Ilmenite