'Booming' gold mining, gas fracking key in plan to reverse NT's $11b debt

From "booming" gold mines to a gas fracking project touted to support Australia's energy supply for the next 200 years, the Northern Territory treasurer says the government is turning the tide on the Territory's $11 billion debt.

Two years after being elected on a promise to rebuild the NT's struggling economy, Treasurer Bill Yan has claimed the Country Liberal Party (CLP) government has flattened debt growth forecasts and made the Territory a more attractive place for big industry.

"What we're doing as a government is making sure we provide those opportunities and environment where investors want to come here and not get in their way," NT Treasurer Bill Yan told the ABC. 

Treasurer touts gold, copper, gas and core projects

Mr Yan said the CLP's HomeGrown Territory Grant housing scheme and progress on major projects had helped the Territory's fiscal situation, citing eight mining projects, including the Beetaloo Basin which is due to begin pumping gas to Darwin next week.

"We could help power Australia with gas for the next 200 years," Mr Yan said.

Mr Yan said the government would support industry in mapping out new pipelines to pump water and gas from the Beetaloo to power data centres in years to come.

Mr Yan pointed to the Nolans Rare Earths Project in Central Australia, which reached a final investment decision in May, describing it as "huge news" for the region.

He also said KGL Resources was closing in on a final investment decision for its Jervois Copper Project, and noted other mines that had come online in recent months including Core Lithium's Finniss project and the Mount Todd gold mine, which has been revived after nearly three decades in hibernation. 

All of those resources projects pre-date the CLP's landslide election win in 2024.

During their final year in government, Territory Labor faced criticism for failing to keep major projects up and running with the then-opposition leader, Lia Finocchiaro, blaming red tape and slow decision-making. 

Independent economist Saul Eslake said the success of mining projects often rested on factors outside of government control, citing the "roller-coaster ride" of lithium prices as an example.

"That kind of environment, which government can't influence one way or another, does make it very difficult for mining companies to line up the finance they need," he said.

"Governments can help by providing a clear and reasonably certain investment environment so that mining companies can understand what hoops they need to jump through."

Mr Eslake said as demand for iron ore and coal continued to drop and global thirst for electricity rose amid the artificial intelligence boom, critical minerals and rare earths would likely become more valuable.

For the Territory to capitalise on the shifting market, Mr Eslake said more exploration would be needed to find out what resources lay beneath the surface.

"That's a high-risk activity," Mr Eslake said.

He said the NT government would need to "create an environment conducive to exploration activities on terms that are acceptable to people who live on the land", including traditional owners.

Economy improving despite government policy decisions, expert says

The CLP's second budget revealed a modest improvement to the NT's debt position compared to the party's first year in government. However, the number is still higher than it was when Labor delivered its last budget in 2024.

The 2024 budget projected the Territory's debt to reach $12.2 billion by the end of 2026-27.

The most recent budget papers show net debt is expected to surpass $12.5 billion by that time, an extra $300 million from what was predicted in Labor's budget.

Mr Eslake said while the NT's bottom line had improved marginally since the CLP came to power, the change had not been the result of government policy.

"They do appear nervous about trying to get more money out of mineral royalties and there doesn't seem to be any great desire on their part to cut spending," he said.

He said spending to support policy changes on crime and corrections had also hit the Territory's economy hard.

Instead, Mr Eslake said the Territory has benefited from its cut of federal GST and national housing and employment trends.

"The story since the CLP came to office is the things the Territory can't control … have generally been favourable, they've improved the budget position, and the government's policy decisions have actually made it worse," he said.

"The net effect of the two is the bottom line has improved a bit."