Mining and manufacturing

This section provides analysis for the Northern Territory's (NT’s) mining and manufacturing industries. It  explores activity for a range of commodities, minerals, manufactured products and exports. Mining and manufacturing activities that take place in the NT include mining of metal ores, petroleum production, quarrying and mining of non-metallic minerals, as well as the manufacturing of a wide range of products for both domestic and overseas consumption.

Economic contribution | Contribution to employment | Mineral production | Petroleum production | Manufacturing | Explanatory notes

This section provides analysis for the NT’s mining and manufacturing industries. It explores activity for a range of commodities, minerals, manufactured products and exports. Mining and manufacturing activities that take place in the NT include mining of metal ores, petroleum production, quarrying and mining of non-metallic minerals, as well as the manufacturing of a wide range of products for both domestic and overseas consumption.

Mining and manufacturing contribute to the NT economy through international trade, private investment and employment. The mining and manufacturing industries also have a significant impact on the NT’s construction industry as mining and manufacturing projects generally require significant levels of construction activity.

Economic contribution

• The NT’s mining and manufacturing industries rose 31.9% in 2019-20 to $8.5 billion, which reflects a 39.7% increase in the mining industry to a record $7.5 billion, partly offset by a 7.5% decrease in the manufacturing sector to $982 million.
• Mining and manufacturing accounted for 31.6% of NT economic output in 2019‑20 (Chart 1).

Contribution to employment

• In 2019-20, mining and manufacturing employment fell 12.7% to 6,021 persons. This reflects a 32.5% decrease in mining industry employment, partly offset by a 5.3% increase in the manufacturing industry (Chart 2).
• Employment figures may be understated as both industries employ large numbers of fly‑in fly‑out workers from interstate, who are not included in the NT’s official employment figures.

Mineral production

• The NT’s mineral producers sold $4.4 billion worth of commodities in 2019-20, a 10.6% decrease from 2018-19 (Table 1) (Chart 2).

• The NT also produces a range of non-metallic minerals such as rock, sand, gravel and quicklime that contributed 1% to the total value of mineral commodities sold in 2019-20.
• The NT’s metallic mineral commodities are predominantly exported overseas (with the exception of gold dore production, much of which is transported to the Perth mint for processing).

Map 1: Current and pending mineral and onshore petroleum production in the NT¹

1  This map is produced from various sources. Department of Treasury and Finance cannot guarantee the accuracy,currency or completeness of the information. To be used as a guide only.
Source: Department of Primary Industry and Resources, Department of Treasury and Finance.

Petroleum production

• Petroleum production in the NT includes the extraction of crude oil, condensate and natural gas, as well as the production of LNG, which makes up a large proportion of the NT’s overall production.
• Onshore petroleum production in the NT occurs mainly in the Amadeus Basin around the central Australia region. The NT’s offshore petroleum production comprises several operations in Commonwealth and Timor Leste waters, with gas piped onshore to LNG plants near Darwin (Map 2).

Oil

• The NT produces oil both onshore, in Central Australia, and offshore, in the Timor Sea. Offshore oil production attributed to the NT is mainly from the Montara oilfield, following the cessation of production at the Laminaria‑Corrallina oilfield since July 2019.
• Oil produced offshore is exported directly from the fields for overseas trade. The value of the NT’s offshore petroleum oil exports sharply fell by 96.9% to $5.1 million in 2019-20 (current prices), reflecting the cessation of production at Laminaria‑Corrallina oilfield, and the fall in global oil prices in the first four months of 2020.
• Following the suspension of production at the Surprise oilfield in 2015, the NT’s onshore oil production is solely from the Mereenie oilfield, located west of Alice Springs. The majority of the oil produced there is transported to South Australia for processing to be sold to domestic customers as well as for export overseas.
• In 2019, total onshore oil production rose 9.3% compared to the previous year (Chart 3).

Gas

• The NT’s onshore conventional gas is produced from the Amadeus Basin, Dingo and Mereenie gas fields, located in the Central Australia region.
• The Northern Gas Pipeline was completed in late 2018, providing overland access to the eastern Australia gas market. Interstate gas exports through the pipeline commenced in January 2019.
• Onshore gas production rose significantly by 197.4% in 2019. The increase is due to prior upgrades in production capacity at the Mereenie and Palm Valley gas fields leading up to the completion of the Northern Gas Pipeline.
• LNG production is the largest manufacturing activity in the NT and total goods exported, however, is included in the mining industry classification by the Australian Bureau of Statistics (ABS).
• In 2019, LNG production at the Santos LNG plant declined by 15.3%. Production figures at the INPEX LNG plant is currently not publicly available.

Map 2: Petroleum activity¹

1  This map is produced from various sources. Department of Treasury and Finance cannot guarantee the accuracy, currency or completeness of the information. To be used as a guide only.
Source: Department of Treasury and Finance.

Manufacturing

• The NT produces a wide range of manufactured goods, the most prominent of which is helium, as well as smaller scale manufacturing such as steel fabrication, wood, paper and food.
• Manufactured goods production accounted for 4.1% ($982 million) of GSP in 2019-20 (Chart 4).
• Manufacturing employed an average of 3,809 persons in the NT in 2019-20, below the 10-year average of 3,882 persons.
• Manufacturing accounted for 2.9% of the NT’s employment in 2019-20.

Explanatory notes

• The NT’s mining and manufacturing industries’ data are reported together for the purposes of this publication as ABS includes the gross value added of manufactured LNG in the mining industry classification. Mining and manufacturing activities in the NT include mining of metal ores, petroleum production, quarrying and mining of non-metallic minerals, as well as manufacturing of a wide range of products for both domestic and overseas consumption such as concrete, wood chips and food products. The NT’s mining industry data also includes offshore petroleum production in NT waters.
• Analysis of the components of this industry is informed by a number of different data sources, including the ABS, information published in company reports and data provided by the Department of Primary Industry and Resources.
• The NT has a number of offshore gas reserves in NT waters (Map 3). Current offshore NT gas production is located at the Bayu‑Undan gas field in Timor Leste offshore waters, the Blacktip gas field near the NT and Western Australia border, and the Ichthys gas field, 220 km off the coast of Western Australia. Gas produced at the Blacktip gas field is transported by pipeline to an onshore processing plant in Yelcherr, near Wadeye, for domestic consumption, supplying the Darwin‑Katherine power network. Gas from Bayu‑Undan is transported by pipeline to the Santos LNG plant for processing. Gas from the Ichthys gas field is transported by pipeline to the INPEX LNG plant for processing. Royalties from resources production in the Bayu-Undan gas field are paid to Timor Leste in its entirety.