Industry News

The Territory Labor government is backing mining in the Barkly Region, with another milestone reached by Avenira Limited.

Avenira Limited’s Mining Management Plan (MMP) has been approved under the Mining Management Act 2001, authorising mining to commence at the company’s Wonarah Phosphate Project.

The Wonarah Phosphate Project is located 300km east of Tennant Creek and will initially create 25 jobs, increasing to 50 during the Direct Shipping Ore program.

First exports will be for phosphate rock and later exports will supply Avenira Limited’s Lithium Ferro Phosphate (LFP) project at the Middle Arm Sustainable Development Precinct.

Both projects provide significant economic and strategic opportunities for the Northern Territory.

Traditionally, phosphate has been used in agricultural fertiliser and is now in increasing demand for use as a critical mineral in electric vehicles and energy storage batteries.

Avenira Limited signed a Mining Agreement with the Arruwurra Aboriginal Corporation in July, creating pathways to sustainable commercial outcomes and social benefits for Arruwurra’s members.

The agreement will ensure local aboriginal people and businesses are given first consideration for employment or contracting opportunities.

The Authorisation recognises the prior environmental impact assessment and recommendations made in the NT Environment Protection Authority’s Environmental Assessment Report 64.

Quotes attributable to Minister for Mining and Industry, Nicole Manison:

“In huge news for the Territory economy and a big win for jobs in the Barkly - Avenira Limited has met its regulatory obligations and is now authorised to commence mining.

“The Wonarah Phosphate Project further cements the Territory’s reputation as a globally significant hub for resources and critical minerals.

“This is the 9th significant mine approval in the past three years and is further proof the Territory Labor Government is backing our resources industry.

“We have the resources the world needs to transition to net-zero emissions and green energy and we support the projects that make this happen.”

Quotes attributable to Avenira Limited Director, Brett Clark:

“We are delighted the Northern Territory Government has approved our Mining Management Plan.

“This is a crucial step in delivering our mining project, which will provide feedstock for our proposed LFP cathode production plant.

“Completing this project will see Darwin become a key supplier of critical materials to the global battery market.

“The signing of the MMP follows the conclusion recently of formal agreements with our technology partner Aleees, which shows this project is moving forward very positively.”

Source: NT Government Newsroom

The Empire team is pleased to have received this R&D tax offset as it positions us to focus on completing the Pilot Project FID process. We are making material progress on the Pilot Project, advancing:

1. Field Development Planning, including identifying locations for and the design of development wells and surface facilities;
2. Pipeline access negotiations;
3. A formal gas sales marketing process;
4. Regulatory and indigenous approvals; and
5. Planning for project financing.

Empire’s focus is on funding the Pilot Project in a manner that minimizes dilution of shareholder’s interests in the Company. To that end, Empire is discussing potential debt options with lenders and has commenced discussions with parties interested in acquiring a direct working interest in the project in exchange for funding development activities.

We look forward to updating shareholders as these value accretive initiatives progress."

Source: Empire Energy Group

Please click here to read the full announcement.

The Territory and Federal Governments have signed a landmark Skills Agreement for the Northern Territory.

Starting from January next year, the five-year National Skills Agreement (NSA) was developed and agreed to by National Cabinet, and replaces the National Agreement for Skills and Workforce Development (NASWD).

The National Skills Agreement will provide up to $155 million over five years for the Territory skills and training sector. This is around $80 million more than the current NASWD Special Purpose Payments.

The Agreement includes a range of reforms which expand the Territory’s support to further develop our regional and remote communities, and ensure we have the workforce we need.

The NSA is complementary to the reforms underway in skilled migration and will assist in addressing workforce shortages over the longer term in the NT by providing local training opportunities and support the achievement of a $40 billion economy by 2030.

The NT has historically been a major contributor to VET, currently contributing 82% of funding to the sector, well above the national average of 60%.

The NT has the highest levels of student and employer satisfaction including a satisfaction rate of 90% for all government funded VET graduates, 95% for Aboriginal and Torres Strait Islander graduates and 84% for NT employers.

Quotes attributed to Chief Minister, Natasha Fyles:

“Through my Governments work at National Cabinet and skills sector, we have advocated for this $155 million skills deal which will help boost our skilled opportunities and will help meet our workforce shortfall in critical sectors.

“We know how important it is for Territory students to have access to learning and training opportunities and courses. As well as business having access to home grown skilled workers.

“The Territory Labor Government continues to have a large investment in skills, with one of the highest ratio of state allocated government funds for VET.”

Quotes attributed to the Minister for Business, Jobs and Training, Paul Kirby:

“The Territory Labor Government has worked with the Federal Government to show our commitment to skilling Territorians and improving our workforce.

“We need to train people now for the jobs of the future so we are ready to capitalise on projects which continue to bolster our economy.

“In the NT, 92% of VET graduates in the NT were employed and/or continued on to further study after completing their training - well above the national average and the highest result in Australia.”

Quotes attributed to Federal Member for Solomon, Luke Gosling OAM MP:

"This National Skills Agreement, combined with our Fee-Free TAFE places, will mean more aged care workers, more child care workers, more hospitality workers, and more Territorians with the skills that they need, but also the skills that our economy needs."

"This investment is on top of $414 million already committed for the delivery of a nationwide total 300,000 Fee-Free TAFE places from 2024."

“This creates more opportunities for young people, for mature age Territorians, for people living with disability, and for regional and remote learners - as well as improving women’s economic participation and Closing the Gap for Aboriginal Territorians.”

Quotes attributed to Charles Darwin University TAFE Deputy Chief Executive Robert Scherwdt:

“As the Northern Territory’s largest training provider, CDU TAFE is committed to working with the government and industry to develop our skilled workforce and be agile in the changing job market.

“The finalising of this agreement comes at a time when CDU TAFE continues to develop its footprint across the Northern Territory with on-country training, growing our presence in all the regions, and more resources dedicated to responding to the needs of regional and remote communities in and around Central Australia.”

Source: NT Government Newsroom

Joint media release with Trade and Tourism Minister, Senator the Hon Don Farrell.

Trade and Tourism Minister Don Farrell and Resources Minister Madeleine King have welcomed moves by Export Finance Australia (EFA) to join in the financing of Liontown’s Kathleen Valley Lithium project, which will see 500,000 tonnes of exportable lithium produced for markets including Korea and the United States.

EFA is providing $220 million to the project through an export credit agency (ECA) Facility, alongside a syndicate of commercial banks and funders. 

The ECA Facility will also allow for the potential later participation of export credit agency counterparts, the Export-Import Bank of the United States (EXIM) and the Korea Trade Insurance Corporation (K-Sure) in the project, subject to EXIM and K-Sure eligibility criteria and credit and risk requirements being met. 

Minister Farrell welcomed the project and said it was a demonstration of how EFA is financing the sector, working alongside Australia’s international partners. 

“This project will help to diversify global critical mineral supply chains, including through supplying to Korea and the United States,” Minister Farrell said.

“It is another example of how more trade and investment means more jobs for Australian workers.”

The project is expected to create around 800 jobs during construction, and around 600 jobs ongoing. 

Minister King said the investment was significant for Western Australia and showed how the Government was supporting the growing critical minerals industry. 

“The road to net zero runs through Australia’s resources industry,” Minister King said. 

“Australian critical minerals projects are vital to ensuring the world has a stable, reliable source of materials to power the energy transition.

“Global demand for critical minerals needed for electric vehicles and battery technologies is increasing as the world moves to decarbonise, and Australia is key to meeting this demand.”

Provision of EFA finance is subject to all financing conditions and regulatory approvals being met.

Source: 

The Hon Madeleine King MP

Minister for Resources and Minister for Northern Australia

Robust sales revenue, production and free cash flow

• Sales revenue of more than US$1.4 billion in the third quarter.
• Third quarter production of 23.3 mmboe was slightly higher than the prior quarter primarily due to increased crude oil production in PNG.
• Bayu-Undan continuing to produce with at least one more LNG cargo expected, followed by sales into the Australian domestic market until end of field life.
• Free cash flow from operations of around US$470 million in the third quarter and US$1.6 billion year to date.

Strong balance sheet to deliver development projects

• Pikka drilling is progressing with rig operations completed on the first three wells and the fourth well in progress. One well has been stimulated and flowed back for cleanup and data collection.
• Barossa project now 68 per cent complete, excluding Darwin Pipeline Duplication project. Drilling activities remain suspended pending assessment and acceptance of the associated environment plan by the regulator.
• In October Santos notified NOPSEMA that it plans to commence pipelay activities on the Barossa Gas Project after complying with the requirements of the General Direction issued by the regulator.
• In September Santos conducted a debt offering and successfully priced a US$850 million senior unsecured transaction in the US dollar 144A/RegS market.
• Net debt of $4.3 billion and gearing at 19.3 per cent excluding operating leases (22.6 per cent including operating leases) at 30 September 2023.

Santos Energy Solutions focused on decarbonising the energy supply chain

• Moomba CCS project is 75 per cent complete with first injection on track for mid 2024. Moomba CCS is targeting ~US$24 per tonne, lifecycle breakeven which will make it one of the lower cost CCS projects globally.
• The 0.25 tonnes per day Direct Air Capture (DAC) unit arrived in Moomba during the quarter with pre-field trials commissioning work  successfully completed in Perth.

To view the full third quarter report, click here.

To view the full third quarter report data tables, click here.

Source: Santos  

Monadelphous Group Limited (ASX:MND) today announced it has received a letter of intent for a variation to its existing offshore maintenance services contract with INPEX Operations Australia P/L. 

Engineering company Monadelphous Group Limited (ASX: MND) (“Monadelphous” or “the Company”) today announced it has received a letter of intent for a variation to its existing offshore maintenance services contract with INPEX Operations Australia P/L (“INPEX”).

The existing contract includes operational, campaign and shutdown maintenance services and brownfield projects implementation associated with the INPEX-operated Ichthys LNG offshore facilities in the Browse Basin approximately 450 kilometres from Broome, Western Australia and was recently extended by four (4) years (refer to ASX announcement on 4 May 2023).

The variation, which is valued at approximately $75 million per annum, will add to the Company’s scope of work under the existing contract to include the provision of similar services at the INPEX-operated Ichthys LNG onshore processing facilities at Bladin Point in Darwin, Northern Territory. Monadelphous is working closely with INPEX to finalise the terms of the variation. 

to view the full ASX announcement, click here.

Source: Monadelphous Group Limited

Western Australian-based mining services provider Monadelphous will take control of INPEX’s $75m a year on-shore maintenance contract under a deal flagged on Wednesday morning.

About 400 employees at Inpex’s Middle Arm LNG processing plant will change boss next month if the proposed amendment to Inpex’s onshore maintenance contracts goes ahead. Shift changes at the worksite are also on the table.

The new agreement will follow the termination of Inpex’s contract with Trace, which has had the company’s onshore maintenance contract since 2017.

Workers were informed of the change during a town-hall meeting at Inpex’s Bladin Point site.

All existing Trace employees will have the option of shifting to Monadelphous.

Monadelphous announced it had received a letter of intent from Inpex to vary its existing maintenance services contract.

It said the $75m variation would add to the company’s scope of work under the 2017 agreement with Inpex, that was extended in May.

If approved, Trace’s contract would expire on November 22 and be assumed by Monadelphous the following day.

In its ASX statement, Monadelphous said the existing contract included operational, campaign and shutdown maintenance services at Inpex’ offshore facilities in the Browse Basin in Western Australia.

“The variation, which is valued at approximately $75 million per annum, will add to the company’s scope of work under the existing contract to include the provision of similar services at the Inpex-operated Ichthys LNG onshore processing facilities at Bladin Point in Darwin, Northern Territory,” the statement said.

“Monadelphous is working closely with INPEX to finalise the terms of the variation.”

Monadelphous has been operating in the Northern Territory since 1993, opening a Darwin workshop in 1994 and operating out of the Gove alumina refinery and bauxite mine from 1996.

Monadelphous’ Darwin workshop was upgraded in 2019 to support contracts with Inpex and Shell.

In addition to the Ichthys project, Monadelphous has been involved with developments including ENI Blacktip, Union Reef gold mine, Argyle diamond mine and the Tanami Granites mine site.

Source: NT News

Highlights:

• Farm-in agreement with Mosman Oil and Gas Ltd to acquire a 75% interest in the EP 145 Permit in the Amadeus Basin in Central Australia. The proposed transaction is subject to Ministerial Consent and Government approval for the transfer of the rights as an Operator.

• EP 145 hosts an existing Prospective Resource Estimate, with a “Best Estimate” of 440 Billion cubic feet (“Bcf”) Total Gas, including 26.4 Bcf of Helium and 26.4 Bcf of Hydrogen.

• Preliminary technical analysis indicates the tenement hosts favourable geology for helium production, with similar characteristics to other producing helium wells in the Amadeus Basin.

• The Amadeus Basin has a long history of hydrocarbon production and has the potential to become a world-class province for helium and hydrogen, with some of the highest concentrations of helium globally and confirmed hydrogen accumulations.

• Acquisition provides an exciting opportunity to target the rapidly expanding helium market, which is experiencing significant long-term supply shortfalls.

• Proximity to critical gas infrastructure provides a near-term commercialisation pathway, with potential to be rapidly advanced alongside Greenvale’s flagship Alpha Torbanite Project in Queensland.

• Transaction terms is a cash payment of $160,000 for a 75% interest and with the Company to fund 100% of the seismic and well work programme. 

• Greenvale is to be the Operator of the project. The Project is to be administered under an Operating Committee, which Greenvale will control. 

To view the full ASX announcement, click here.

Source: Greenvale Energy

Mosman Oil and Gas Ltd (AIM:MSMN) has agreed a farm-in deal for its EP 145 project in Australia’s Northern Territory with Greenvale Gold.

Greenvale can earn up to a 75% stake in the project through the payment of A$160,000 cash, paying for A$2 million of seismic as part of a work programme and a well with costs capped at A$5.5 million.

Mosman added it had identified a drilling target at 1,500 metres (m) and estimated the cost of drilling that well to be in the order of A$5 million.

Costs above the A$5.5 million cap will be shared 75% by Greenvale and 25% by Mosman.  

Regulatory approvals are expected by 30 January 2024, after which the agreement can be terminated by either party if they have not been received.

Mosman added it considers the farm-in the best outcome as it eliminates the need to raise additional capital.

A spin-out and initial public offering (IPO) as had been previously suggested would have involved significant costs, Mosman added.

Andy Carroll, chief executive: added: "We are pleased to have reached agreement with Greenvale who we see as a strong Joint Venture partner to work with in Australia.

“This agreement delivers on funding exploration and is validation of the helium, hydrogen and hydrocarbon potential of EP 145."

Shares rose 18% on the announcement.

Source: Proactive Investors

Minister for Local Government Chansey Paech has today placed the Barkly Regional Council under official management, and all elected members have been suspended from office.

The Minister has made this decision because he is satisfied there are, or may be, serious deficiencies in the conduct of the Council’s affairs.

Peter Holt has been appointed Official Manager and now holds the powers of the elected members to ensure the business of Council continues without interruption.

Ruth Morley has been appointed as Investigator to examine the affairs of the Council and will report her findings to the Minister by 12 March 2024.

During the period Council is under official management, elected members will not be able to conduct any official Council business, and all allowances and other entitlements will cease.  This process will not affect staff members.

The Barkly Regional Council serves around 8000 constituents spanning approximately 325,000 square kilometres from Newcastle Waters in the north to Tara in the south.

Tennant Creek is the regional centre of the local government area, which also includes Arlparra, Ampilatwatja, Ali Curung, Alpurrurulam, Wutunugurra, and Elliott.

Quotes attributable to Minister for Local Government Chansey Paech:

“Official management will ensure the continuance of governance at the Barkly Regional Council; and establish its position in regards to its fiscal management and service delivery obligations.

“I acknowledge the remoteness of communities served by the Barkly Regional Council provides unique geographic and demographic challenges, but it is imperative that the Council is able to operate effectively so residents receive the services they need and deserve.

“My decision today paves the way for better-functioning services across communities and a more stable future for the people of the Barkly region.”

Source: NT Government Newsroom