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
Overview 7 Northern Territory Economy Risk to the Territory Economic Growth Outlook There are several domestic, external and measurement risks to the Territorys economic outlook. These include skills shortages, the risk that future projects have been underestimated and the high level of the Australiandollar. External influences include the risks of US tax increases and spending cutbacks to emerging growth in the US economy and of failed euroarea policies leading to renewed volatility in global credit markets. Measurement risks concern the timing and recording of payments and interstate trade flows relating to major projects. Potential Mining, Manufacturing and Retail Projects There are a number of potential mining, manufacturing and large retail projects that may influence future economic growth in the forward estimate years but, as no financial investment decision has been made, they are not included in any of the forecasts for the economic indicators listed above. Potential mining, manufacturing and retail developments: the Crux liquids project, led by Nexus Energy and Shell. The project aims to develop a floating processing facility to extract condensate from the Crux field located 700kilometres west of Darwin in the Timor Sea. At peak production it is estimated to produce 38000barrels of condensate perday; the Bonaparte LNG project is a joint venture between GDF SUEZ and Santos to develop a floating LNG production facility in the BonaparteBasin, in the Timor Sea, 250 kilometres west of Darwin. The project aims to produce LNG using natural gas from the three remote offshore fields, Petrel, Tern and Frigate with the floating LNG production facility to be serviced out of Darwin. A final investment decision for this project is scheduled for 2014; the development of the Greater Sunrise gas field has the potential to produce 4million tonnes of LNG per annum. Although an agreement has been reached between the governments of Australia and Timor-Leste regarding the sharing of revenues from the anticipated development of the field, approvals from both governments for the development of a floating LNG facility and establishment of fiscal arrangements need to be obtained before funding arrangements can proceed; Sherwin Iron is proposing to develop its $180million Roper River iron ore project located 475 kilometres south east of Darwin along the RoperHighway. The mine is expected to produce around 5 million tonnes of iron ore per annum; Western Desert Resources is looking to commence development of their Roper Bar iron ore project over the coming years. The project is expected to produce around 10million tonnes of iron ore per annum at full capacity; Australian Abrasive Minerals has a proposed garnet sands deposit, 170 kilometres north east of Alice Springs at Spinifex Bore. The mine is estimated to have a 25-year supply of high quality mineral sands;
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