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

Two years after the Country Liberal Party (CLP) government took office with a pledge to revitalize the Northern Territory's economy, Treasurer Bill Yan has reported progress in reducing the Territory's $11 billion debt. The CLP government has credited major resources projects and the HomeGrown Territory Grant housing scheme for improving the fiscal situation.

These projects include eight mining initiatives, with the Beetaloo Basin gas project set to begin supplying Darwin with gas next week. Treasurer Yan stated that the government aims to create an environment conducive to attracting investments, allowing industry to thrive without hindrance. Independent economist Saul Eslake noted that while government policies cannot significantly influence mining activities, a predictable investment environment is crucial for companies to secure necessary financing.

Eslake emphasized that as the demand for iron ore, coal, and electricity shifts towards critical minerals and rare earths due to the artificial intelligence boom, the Territory has an opportunity to capitalize on these changes by accelerating exploration efforts. Despite a modest improvement in the Territory's debt position, Eslake argued that the government's policies have not played a significant role in the change, pointing out that the primary factors are favorable external conditions and federal GST allocations.