The Northern Territory

Facts in Brief

Capital: Darwin
Latitude: 12° 23' South
Longitude: 130° 44' East
Land area: 1,349,129km2 (17.5%)
Population as at 31 March 2003: 197,100
Indigenous population 2001: 50,785
Mean annual temperature: Darwin 23.2ºC – 31.9ºC, Alice Springs 12.8ºC – 28.6ºC

Key Industries

Mining and Resources

In 2001-02 the mining industry accounted for 24% of the Northern Territory’s GSP compared with 5% of Australia’s GDP and is a major contributor to the Territory economy. It is estimated the industry employed an average of 4 600 in 2001-02.

The total value of production in the Northern Territory mining industry (minerals and petroleum) totalled $3192m in 2001-02. The value of energy production (oil, natural gas, uranium) accounted for 54% or $1 732m of the total value of mineral and energy production, with mineral ore accounting for 30% or $919m and minerals manufacturing accounting for nearly 16% or around $501m.

The Northern Territory’s most significant mineral resources include:
• bauxite - Australia’s third-largest bauxite mine, near Gove
• gold - major operating mines in the Tanami Desert and Pine Creek areas
• manganese - the world’s third-largest producer of manganese ore, at Groote Eylandt
• zinc, lead, silver - one of the world’s largest known ore bodies, at McArthur River
• magnesite - a major resource in the Batchelor area
• lead, cobalt, copper, nickel, silver - a major deposit in the Batchelor area
• diamonds - prospective indicators for the North Australian Craton
• uranium - deposits at Ranger, Jabiluka and Koongarra
Source: www.otd.nt.gov.au

Major new developments are planned for the NT. Alcan Gove alumina plant optimisation is well under way and a major plant expansion and gas pipeline is planned (combine value $1.9 Billion.

Tourism

Tourism is the Territory’s second largest revenue earner, after the mining industry. It is the largest employer of Territorians.

In 2001/2002, visitors contributed $1,026 million into the Territory economy. There were more than 1.72 million visitors to the Territory in 2001/2002. Interstate visitors accounted for 39% of all visitors, and international visitors for 30% (or 521 000 visitors). The remainder were Territorians travelling within the Territory.

Growth in visitor numbers over the past six years has been driven by the international market, which increased by an average of 6% a year. Growth in interstate visitation has been lower at -2%. Interstate visitors have increased their average stay, while international visitors’ length of stay has declined.

In 2001/2002, there were 786 000 visitors to the Top End region (incorporating Darwin and Kakadu) who spent $497.3 million. There were 756 000 visitors to the Centre region (incorporating Uluru and Alice Springs) who spent $418.5 million. The Northern Territory has an extensive selection of more than 223 accommodation establishments, which range from backpacker hostels to five-star resorts. A total of 2,284 four and five-star rooms are available across the Northern Territory (as at June 2002).

Primary industries and Fisheries

Primary industries continue to grow and diversify throughout the Northern Territory. These industries include pastoral (cattle, buffalo and camels), horticulture (fruit, vegetables, nursery and cut flowers) and mixed farming (field crops, hay production and intensive grazing).
The Northern Territory contributes 32% of all Australian live cattle exports and approximately 43% of total Australian live cattle export to Asia. (NT Economy May 03 Budget Paper)

Cattle

Most pastoral properties in the Northern Territory are cattle enterprises. There are four pastoral districts: Darwin and Gulf, Victoria River, Barkly Tableland and Alice Springs. The Northern Territory cattle industry is primarily a breeding operation supplying store cattle for finishing in other regions or for export to South East Asia. In each of the pastoral districts, cattle are run under rangeland conditions on native pastures. The northern monsoonal region is suitable for intensive pastoralism using introduced pasture species and some supplementary cropping. There are 205 pastoral leases in the Northern Territory. These pastoral leases cover 651,708 square km or 48.42 per cent of the total area. The pastoral holdings vary from small stations of 198 square km, to the Northern Territory’s largest property, Brunette Downs, which runs cattle over 12,212 square km.

Buffalo

Buffalo are run on approximately 20 properties in the Top End. Riverine buffalo have been imported from the United States to determine the feasibility of crossbreeding and upgrading the existing swamp buffalo breed in the Northern Territory. Crossbreeds have exhibited outstanding performance in trials so far, with asignificant reduction in the time taken to get to market weight. A general population of around 20,000 buffalo still exists, mainly in southern Arnhem Land.

Camels

Total live camel sales in 2001-02 exceeded 2500 head, valued at approximately $1.25 million. Confirmed contracts for 2002-03 indicate that live exports to South East Asia and the Middle East will double to at least 5000 head. Major export markets for camel meat have been identified. Pastoralists and some Aboriginal communities are responding to the recent market developments by trapping, domesticating and supply camels for sale, thereby securing an extra income stream. Current projections for a total demand for 20 000 head per year in less than a decade are sustainable.

Mixed Farming Production

The Top End of the Northern Territory, from south of Katherine, north through to Darwin, has the climate, rainfall, land and water resources to allow high value intensive production, compared to traditional pastoral cattle production. Production opportunities range from intensive cattle production on improved pastures, through to fully irrigated high value crop production. Hay production, irrigated peanut production, and sesame seed production are the current focus for industry expansion.

Animal Industries

The value of animal industries other than cattle was estimated at $17.9 million in 2001. This consisted of poultry, meat and eggs, pig meat, fresh milk, crocodile farming, as well as live exports interstate and overseas of buffalo, horses, camels and deer.

Horticulture

Growth of horticultural industries in the Northern Territory has been spectacular, with value of the industry climbing to more than $90 million in 2001 from less than $500 000 in the early 1980’s. Industry value has been doubling every five years for the past 20 years. Almost all of the crops grown commercially in the Northern Territory are based on out of season production to the northern hemisphere, or early season for the Australian markets. It is this early and out of season production that offers future market opportunities. There are significant opportunities for new and expanded horticultural crops to be developed in the Northern Territory, however, factors such as remoteness and the cost of labour and transport need to be taken into account.
The total area under horticultural production in the Northern Territory is estimated at 10 000 hectares. The major crops are mangoes, table grapes, bananas, melons, Asian vegetables and ornamental crops. Current areas planted are capable of doubling the value of the industry in five years time. Future opportunities for a number of other crops are being explored. There is a strong research and extension support from Northern Territory Government programs, along with support to develop infrastructure to assist industry development.
Source: www.otd.gov.au

Retail and Wholesale trade

Retail and wholesale trade accounted for approximately 6.4% of GSP in 2001 – 02 compared to 9.6% nationally.

Defence

The defence community makes up almost 6% of the Territory’s current population. Major defence sites include Larrakeyah Barracks in Darwin, Robertson Barracks near Palmerston, HMAS Coonawarra in Darwin, the RAAF Base Darwin, RAAF base Tindal near Katherine, and Joint Defence Facility at Pine Gap, near Alice Springs.
(Northern Territory Economy May 2003, Budget Paper)

Capital projects totalling $268 million have either commenced or will commence during 2002/03 at the Robertson Barracks joint army development facility alone. Significant potential also exists for development of long-term defence support capacity in the NT.