Territory Stories

Budget 2013/14 Northern Territory Economy

Details:

Title

Budget 2013/14 Northern Territory Economy

Other title

Tabled paper 295

Collection

Tabled papers for 12th Assembly 2012 - 2016; Tabled papers; ParliamentNT

Date

2013-05-14

Description

Tabled by David Tollner

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

Publisher name

Department of the Treasury and Finance

File type

application/pdf

Use

Copyright

Copyright owner

See publication

License

https://www.legislation.gov.au/Details/C2019C00866

Parent handle

https://hdl.handle.net/10070/273751

Citation address

https://hdl.handle.net/10070/426369

Page content

Mining and Manufacturing 131 Northern Territory Economy In sharp contrast to nationally, the Territorys manufacturing sector is dominated by a small number of large resourcebased processing facilities. These include the Pacific Aluminium refinery at Gove and the Darwin LNG plant at Wickham Point. The Territory also has a helium manufacturing operation owned by BOC Limited that sources helium from the BayuUndan field via the Darwin LNG plant. The balance of manufacturing in the Territory is distributed among smaller operations that manufacture products for export and local consumption, such as steel, wood, paper and food. The Territorys manufacturing industry accounts for a smaller proportion of the Territory economy compared with nationally. In 201112, manufacturing accounted for 5.8percent of GSP compared with 7.1percent nationally. Alumina is manufactured using bauxite as feedstock. In general it takes around twotonnes of bauxite to manufacture onetonne of alumina. In the Territory, the Pacific Aluminium alumina refinery at Gove is the sole producer of alumina. Historically, the bulk of bauxite production at the Pacific Aluminium mine is refined and converted into alumina and exported overseas. The value of alumina production is estimated to have increased from $850million in 201112 to $904million in 201213 (up by 6.4percent). Increased production at Pacific Aluminium reflects moves toward full operational capacity. Levels of production at Pacific Aluminium are expected to be at historically high levels in 201213. The value of LNG production is estimated to increase from $1.5billion in 201112 to $1.7billion in 201213 (up by 8.5percent) reflecting the increase in production following the maintenance shutdown in May and June2012. The maintenance shutdown of the facility is a scheduled part of ConocoPhillips operations program to ensure efficiency and regulatory standards are being met. The Linde Group, through its Australian subsidiary BOC Limited, estimates that helium production in 201213 will remain relatively unchanged. As helium is a diminishing natural resource and due to its extensive use in the medical, manufacturing, space, party and defence industries, the price of helium is expected to remain high at $75750 permillioncubic feet of gas. Outlook The International Monetary Fund is forecasting global economic growth to strengthen in 2013 and return to longterm trend levels from 2014 onwards (see Chapter 3: External Economic Environment). This is expected to lead to increasing demand for mineral and energy resources, which will support mining production throughout the Territory over the forward estimates period to 201617. The total value of mineral, energy and manufacturing production in the Territory is forecast to increase by 13.4percent to $10.4billion in 201314 (Chart10.6) primarily driven by the energy sector with higher levels of oil production, as a result of a full year of production at the Montara project. Mineral production will also contribute to growth in 201314 following the Alumina LNG and Helium


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