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INVESTMENT GUIDE

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Page 1: Investment GuIde - CCPITaaa.ccpit.org/Category7/Asset/2013/Dec/06/onlineedit... · 2013. 12. 9. · Pastoral leases and permitted land uses 44 Population and population projections

Investment

GuIde

Page 2: Investment GuIde - CCPITaaa.ccpit.org/Category7/Asset/2013/Dec/06/onlineedit... · 2013. 12. 9. · Pastoral leases and permitted land uses 44 Population and population projections

500 km

1000 km

2000 km

6000

km

5000

km

4000

km

3000 km

Port Moresby

Cairns

Brisbane

SydneyCanberra

Melbourne

Hobart

Adelaide

Perth

Darwin

Alice Springs

Tennant Creek

KatherineNhulunbuy

Dili

Bali

Jakarta

Singapore

Kuala LumpurBrunei

Kota Kinabalu

Bangkok

HanoiHong Kong

Manila

Taipei

Tokyo

Seoul

Beijing

Shanghai

BeijingTokyoShanghaiBangkokHong KongSingaporeManilaMelbourneSydneyBrisbaneJakartaPerthAdelaideBali

6000 km5400 km5064 km4320 km4250 km3350 km 3150 km3150 km 3150 km2850 km2700 km2650 km2600 km1733 km

Page 3: Investment GuIde - CCPITaaa.ccpit.org/Category7/Asset/2013/Dec/06/onlineedit... · 2013. 12. 9. · Pastoral leases and permitted land uses 44 Population and population projections

Australia’s Northern Territory is set to become the centre of opportunity for northern Australia.

A number of key drivers will converge over the next decade to ensure that northern Australia plays an ever-increasing role in the unfolding Asian Century.

The Northern Territory (NT) boasts abundant natural resources, a dynamic mining and energy industry, major construction and infrastructure projects and a competitive business tax environment and – unlike other Australian jurisdictions – no land tax. It is recognised as an international gas hub and has a government committed to economic prosperity.

Economic growth will open up a wide range of opportunities for NT businesses and their partners, taking advantage of the region’s proximity to Asia and its diversified economic base.

The Northern Territory’s economy is expected to expand by around 20% over the next five years1, reflecting the construction and first years of operation of the Ichthys liquid natural gas (LNG) project, an increased defence presence and healthy construction, infrastructure and housing sectors. Over the same period, the NT workforce is expected to experience strong employment growth, creating new opportunities for existing businesses and people entering the workforce.

Opportunities across several sectors should make the NT a serious investment consideration for any local or offshore business seeking to tap into the suite of options created by easy access to, and trade with, Asia. These businesses need capital, skills and infrastructure, while their employees and families require housing and education.

Now is an ideal time to take a detailed look at the Northern Territory to understand what is on offer and how it will develop, so you can identify potential partners and capitalise on these opportunities in the future.

This Northern Territory Investment Guide is designed to provide an explanation and overview of different aspects of the Northern Territory that might affect the outcome for potential investors. Wherever possible, it provides details of where to obtain additional information on specific topics.

A separate Northern Territory Directory of Investment Opportunities describes investment opportunities in eight sectors including agriculture, energy, infrastructure, manufacturing, mining, property development, service industries and tourism. As there are significant opportunities to invest in mining in the Northern Territory there is a separate Northern Territory Mineral Investment Opportunities that contains detailed information.

Visit www.investnt.com.au to view all current opportunity publications.

IntROduCtIOn

October 2013 | Northern Territory Investment Guide

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Why invest in Australia’s Northern Territory 1

A brief overview of the Northern Territory 3

Index of individual investment influences 5

Aboriginal Land Rights – an overview 5

Aviation access and availability 7

Biosecurity and quarantine 9

Business structures 11

Challenges common to many investments in the Northern Territory 12

Climate change and the potential effects on the Northern Territory 14

Crown Land 15

Demographic information 16

Electricity and power availability and management 18

Finance and access to capital in the Northern Territory 19

Foreign direct investment 20

Foreign ownership 21

Freehold land availability 23

Gas supplies and domestic availability 24

Government – the different levels of Government and their role in investment 25

Industry associations in the Northern Territory 28

Labour availability and cost 31

table Of COntentsLand ownership and tenure 32

Land Use 34

Major Project Status 37

Maps and geographic data 38

Maritime shipping services and availability 39

Migration options for business people and investors 41

Native title in the Northern Territory 42

Pastoral leases and permitted land uses 44

Population and population projections 46

Public-Private Partnerships 47

Rail transport services and availability 50

Road transport services and availability 52

Support to potential investors available from the Northern Territory Government 54

Telecommunications services and availability 55

Time zones in the Northern Territory and Australia 56

Water availability and management for residential centres 57

Water availability and management for industry, agribusiness, and conservation 58

References 59

© Tourism NT

Northern Territory Investment Guide | October 2013

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Australia’s gateway to Asia

Darwin, the capital of the Northern Territory, is the closest Australian capital city to Asia, providing the shortest transport routes for two-way trade between the Asian economies and Australia.

The Northern Territory has one international airport, Darwin International Airport that operates 24/7. The deep water Port of Darwin provides modern freight handling facilities, a dedicated bulk liquids berth and links with an intermodal road-rail network. Reduced shipping times between Darwin and Asia give Darwin a trade advantage, particularly in relation to the export of bulk commodities.

A considerable and pristine resource base

There are significant mineral and energy resource precincts onshore in the Northern Territory, and in offshore waters accessed from the NT. Many of these precincts have been commercialised, with significant investment from international partners. Natural gas and petroleum exports form an important and growing sector of the local economy.

There are also significant areas devoted to agricultural products such as meat, seafood, fruit, vegetables, crops, forestry and ornamental plants. The Northern Territory environment is largely undeveloped. The potential commercial benefit from native flora and fauna, food and medicines is largely untapped.

Climate change may have some medium to long term benefits for the NT

Research by the Australian Bureau of Meteorology suggests that the direct impacts of climate change on agricultural production in the Top End of the Northern Territory are likely to be less severe, and therefore provide more attractive investment opportunities, compared to other primary production areas across Australia.

Why Invest In austRalIa’s nORtheRn teRRItORyThe Northern Territory has a number of advantages that make it attractive to potential investors.

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The agricultural production systems in the NT are already designed around significant variations in climate across annual seasons, making adaptation to the future impacts of climate change easier to incorporate into existing management practices.

A highly skilled and flexible workforce

The Northern Territory has a highly skilled multilingual workforce reflecting a population drawn from across the globe. The pipeline of major economic developments is generating many thousands of jobs, creating opportunities for business entrepreneurs, professionals and skilled tradespeople from all walks of life.

A diverse cultural mix

The NT’s population of almost 250,000 includes people from more than 100 nationalities who have shared their cultures over more than a century to turn this region into one of Australia’s most cosmopolitan. This diverse mix makes it easier to do business with our international partners because there is already a strong understanding of different cultural practices and expectations.

The room and capacity to grow

The Northern Territory not only has the space to grow, it also has capacity to accommodate key infrastructure additions such as new roads, ports and suburbs, with fewer constraints than more highly populated areas of Australia.

A highly regarded and supervised financial environment

Australia is one of several countries with the highest possible AAA credit rating, reflecting the strong and diverse economy, comparatively low debt levels, good prospects for growing income from expanding export markets, and experienced financial oversight. The Northern Territory Government has an Aa1 credit rating, similar to other Australian states and territories, reflecting the level of debt required to fund the infrastructure necessary to underpin current and future economic growth.

These high credit ratings are attractive to investors and fund managers who hold funds in AAA rated investment categories.

Stable government(s)

The quality of governance in Australia is among the world’s best, and Australia is considered among the world’s most politically stable countries. These attributes contribute to economic growth and security, and underpin business and consumer confidence. This stability is attractive to Australian firms seeking to grow, as well as multinationals expanding their businesses or considering the Northern Territory as a regional base.

2 Northern Territory Investment Guide | October 2013

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Geography

The Northern Territory represents about one-sixth of the entire Australian land mass at 1,350 000 square kilometres, but has only 1% of the Australian population at around 235,000 people. While the land is sparsely populated, it presents significant opportunities for investment, particularly in the resources sector.

Darwin is the commercial and administrative centre of the NT. Alice Springs is the largest regional population centre outside Darwin and is the base for significant tourism activities in the central region.

The northern, central and southern regions of the NT display vastly different landscape, flora and fauna and climatic conditions.

The land is divided into two main tenures of approximately equal size, being Aboriginal freehold land and Crown land under pastoral lease. Freehold land accounts for approximately 23,000 square kilometres, or less than 2% of the total area.

Climate

The northern region of the Northern Territory is referred to as the ‘Top End’ and has two official seasons. The ‘Wet’ season occurs between October and April and has high humidity and heavy monsoonal rainfall. The ‘Dry’ season runs from May to September. The Top End occupies roughly the top third of the NT.

In contrast, the central and southern regions of the Northern Territory are relatively dry for most of the year, experiencing cooler winters and hot dry summers.

a bRIef OveRvIeW Of the nORtheRn teRRItORy

© Tourism NT

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The Economy

Mining, LNG production, construction, government services, tourism, horticulture and defence are major contributors to the Northern Territory economy. The economy has averaged 4.4% annual growth since 1990, and current forecasts suggest similar growth will be achieved through to 2030. These forecasts suggest the NT economy will consistently outperform the rest of Australia, and many other countries.

The Northern Territory population of 235,000 people represents a small tax base considering the range of activities and infrastructure necessary to service one-sixth of Australia’s land mass. The NT Government is supported financially by the Australian Government, with approximately 75% of the annual budget funded by the Australian Government through specific purpose grants and a share of the revenue raised from the Goods and Services Tax (GST).

More information on the economy is available from the following websites:www.dob.nt.gov.au/business/economics/key-statisticswww.treasury.nt.gov.au/Economy/EconomicBriefswww.censusdata.abs.gov.au

Significant opportunities for investors seeking to capitalise on economic growth

The Northern Territory economy is still developing, with spending from all levels of government accounting for around 20% of the economy, an existing economy dominated by a handful of industries, and a relatively small local market because of the comparatively small and dispersed population.

The Northern Territory’s proximity to east Asia and its ability to supply the energy, minerals, food and skills demanded by this diverse range of countries presents economic growth opportunities for NT businesses. These will require a steady and coherent series of investments in a range of industries and infrastructure to unlock the NT’s potential.

Australian businesses increasingly recognise that growth potential by expanding into the Northern Territory, either alone or by partnering with existing local firms.

The Northern Territory welcomes foreign investment. There are strategic advantages and synergies arising from investment by partners who are customers of, or operate in, the supply chains exporting products and services from the NT.

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Index Of IndIvIdual Investment InfluenCesabORIGInal land RIGhts – an OveRvIeWIn the mid 1970s a formal Commission established by the Australian Government recommended that legislation be developed and passed to establish a framework to define the entitlement of Australia’s Indigenous population to land to which they could demonstrate a traditional association. This legislation is the Aboriginal Land Rights (Northern Territory) Act 1976 (Cth) (‘the Act’), which was first enacted in 1976, and was subsequently amended in 2006.

The Act is Commonwealth legislation, but only applies to the Northern Territory. The Act is significant in that it allows for a claim of title if claimants can provide evidence of their traditional association with land. Today, about 50% of NT land and 85% of its coastline is owned communally by Aboriginal people.

The Act gives groups of Aboriginal traditional landowners ownership of their lands under freehold titles that are held in trust. Land granted to traditional owners under the Act is a form of inalienable freehold title granted to a Land Trust associated with a Land Council. The Land Trust can only deal in the land (for example leasing for private or commercial property) at the direction of the Land Council, which in turn must ensure that traditional owners have consented to the proposed dealing and that Aboriginal people affected by the proposal have been appropriately consulted.

Under the Act, four Land Councils in the Northern Territory represent the traditional owners:

• Northern Land Council

• Central Land Council

• Tiwi Land Council

• Anindilyakwa Land Council

The Act has a major emphasis on community consultation and informed group consent. When businesses have proposals to conduct activities on land granted under the Act, there are provisions that allow applicants for example to meet with traditional owners

© Tourism NT

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on-country, and give the applicants the opportunity to explain their development or exploration proposal.

Specific components of the Act are relevant to exploration and mining activity, and professional advice and guidance should be sought by parties interested in undertaking this activity on Indigenous land. The NT Department of Mines and Energy can provide guidance and direction on the support available to prospective explorers and miners. Visit www.minerals.nt.gov.au for more information.

Visit the Australian Department of Families, Housing, Community Services and Indigenous Affairs www.fahcsia.gov.au/our-responsibilities/indigenous-australians for additional information on the Act.

© Tourism Australia

6 Northern Territory Investment Guide | October 2013

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avIatIOn aCCess and avaIlabIlItyAir transport is an important aspect of economic growth in the Northern Territory and plays a key role in linking the Territory to national and international destinations, as well as regional and remote areas. The NT has:

• 1 international airport in Darwin

• 5 airports capable of handling jet aircraft

• 16 airstrips registered with the Civil Aviation Safety Authority (CASA)

• 69 regional airstrips maintained by local governments, and

• many private airstrips on pastoral stations, tourist facilities and private properties.

Darwin International Airport is an international gateway capable of handling the largest aircraft currently in operation. Darwin airport supports 1.8 million passenger movements a year, which is estimated to grow to 4 million by 20302. Aircraft movements through Darwin are expected to grow from 83,000 a year to 130,000 a year over this time. General aviation aircraft represent 74% of all aircraft movements through Darwin airport.

The demand for increased services from Darwin to the regional and remote areas of the Territory is expected to expand in future years, sparking the current $60 million airport upgrade. This will impact on the capacity of Darwin airport to cater for demand during peak periods, adding to existing issues arising from the mix of smaller general aviation and larger international and domestic aircraft operating at one airport. At some point, there may be merit in developing a separate general aviation airport in the Darwin area.

Alice Springs is the Territory’s second busiest airport with 630,000 passenger movements a year, which is expected to grow to 940,000 by 20302. Alice Springs airport receives international charter flights from Japan on a seasonal basis. Aircraft movements through Alice Springs are expected to grow from 25,000 a year to 33,000 by 2030. General aviation aircraft represent 75% of all aircraft movements at Alice Springs airport.

The five major airports capable of handling jet aircraft are located in Darwin, Alice Springs, Katherine (Tindal), Ayers Rock and Gove (Nhulunbuy).

In addition to interstate and international services, the Northern Territory has a network of regular passenger transport and charter operations which service the larger regional and remote towns and communities. Charter services are based at the major residential centres and can take passengers and freight anywhere in the NT or to neighbouring states. There are also a number of private and commercial general aviation fixed-wing operators, as most communities depend on charter aircraft for carriage of passengers and freight. Helicopter operations link fixed bases with off-shore oil and gas installations, as well as providing critical search and rescue functions, and medical support.

Air services are particularly important where roads are regularly impassable during the Wet season, sometimes providing the primary means by which people are moved and

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essential freight supplied to isolated communities. There are numerous small sealed runways and gravel landing strips servicing remote communities throughout the NT. The NT Government currently provides funding to maintain 69 of these airstrips and undertakes an ongoing program of works to improve safety and access.

Tourism NT works closely with all major airlines to market the regions for tourism. These strategic partnerships assist in driving increased choice and value in world recognised air carriers for the significant number of holiday visitors to the regions.

More information on aviation infrastructure can be obtained from the Northern Territory Department of Transport www.transport.nt.gov.au or from the local government in the area the airstrip is located. Visit the Local Government Association of the Northern Territory www.lgant.asn.au

Visit www.ntairports.com.au for more information on Darwin, Alice Springs and Tennant Creek airports.

Town sville

Manila

Singapo re

Be ijing

Dubai*

Shangha i

Ta ipei

TokyoOsaka

Hong Kong

Bangkok

Denpasa r Dili

GoveDarwin

Ca irns

Auck land

Adelaid ePerth

Broom e

Alice SpringsAyers Rock

Mount I sa

Guangzhou

Jakarta

Seoul

To UK & Europ e

To USA & Canad a

Bri sbane

Sydney

Melbourne

Gold Coast

Kununurra

Ho Ch i Minh City

*Qantas – Emirates connect all major UK/European markets with Australian gateway cities

Kuala Lumpur

AIR ACCESS MAP

© Tourism NT

8 Northern Territory Investment Guide | October 2013

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bIOseCuRIty and quaRantIneAustralia is free from a number of biological threats, such as foot and mouth disease, that have had major economic or environmental consequences in many other countries. All Australian governments place a high priority on protecting Australia’s people, natural resources, flora and fauna from such threats. The Northern Territory is particularly fortunate, as the vast majority of its environment is in an under-developed state, showing limited effect of human habitation. This is a rarity in an increasingly populated and developed world. It is a priority to protect the NT environment, including its flora and fauna, from undesirable pests, weeds, non-native species and diseases.

However, the extensive landmass and coastal waters of the Northern Territory, and permeable boundaries between regions, make complete exclusion a challenge. Strict protocols are applied to the introduction of species that are not native to the Northern Territory and the NT Department of Primary Industry and Fisheries collaborates with its Commonwealth counterparts to minimise the risks of undesirable invasions.

The Top End of the Northern Territory shares similarities in climate, weather patterns, horticultural crops and ethnic links with the tropical regions of South East Asia. These links increase the likelihood of tropical pests from the region entering and establishing in the NT.

There are also endemic species in the NT that are limited to particular regions due to a combination of climate and growing conditions, or natural barriers such as arid zones. It may be undesirable to see these endemic species spread beyond existing areas, and controls such as interstate movement conditions are applied to limit the potential spread of these species. An expansion in the range of these endemic species may introduce higher costs for producers in areas currently free from these species.

Continuing climate change may have effects on the biosecurity of the Northern Territory. Climate change may increase the rate of arrival of foreign species and associated pests and diseases from countries north of Australia into the NT, allowing them to expand further south or extend their range. Climate change may also change the range currently occupied by species already endemic in the NT. Any significant changes may increase costs for producers in areas currently free from these species. Such changes are difficult to predict, and might have positive or negative effects for local industry.

Quarantine and exporting and importing internationally

The Australian Government is responsible for maintaining Australia’s biosecurity at the national border and has established national regulations, practices and procedures that all Australian states and territories must conform with.

The Biosecurity Division of the Australian Department of Agriculture, Fisheries and

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Forestry (DAFF) has primary responsibility for national biosecurity, including quarantine controls. There are also quarantine controls over what can be moved between jurisdictions in Australia and these are managed by biosecurity agencies within each state or territory. In the Northern Territory, the lead agency responsible for biosecurity is the NT Department of Primary Industry and Fisheries. Visit www.primaryindustry.nt.gov.au for more information.

Quarantine threats can enter Australia in various ways and take various forms, so DAFF work closely with other Australian government agencies – such as the Australian Customs and Border Protection Service, the Australian Department of Health and Ageing, Food Standards Australia and New Zealand (FSANZ) and state and territory governments. Most of this collaboration is focused on managing cross-border detections and incursions of quarantine pests and diseases, and verifying and certifying agriculture and food products.

The assessment and management of quarantine threats is heavily reliant on scientific analysis and risk management assessment. The quarantine assessment process does not consider the economic, political, or other benefits of allowing the proposed importation to proceed.

If potential investors anticipate bringing live or dead plant or animal material, soil, equipment or any other assets into Australia to support a proposed investment, they must clarify any quarantine requirements with DAFF before proceeding. In some cases importing this material will require additional time for inspections and clearance. In occasional circumstance, the importation simply will not be possible either before or after the inspection and clearance process has begun.

Additional information on Australia’s national quarantine arrangements can be found from the Biosecurity Division of the Australian Department of Agriculture, Fisheries and Forestry (DAFF) at www.daff.gov.au/biosecurity

The majority of countries take a similar approach to Australia, and have introduced quarantine requirements and protocols applying to imports, including imports from Australia.

If potential investors propose to export material from Australia to other countries it is recommended that they contact the quarantine service of that destination country to clarify its import and quarantine regulations. In some cases it may be possible for shipments to be inspected and receive quarantine clearance before they are shipped from Australia. Embassies or consulates of foreign countries located in Australia may be able to assist with these queries.

Contact details for embassies or consulates of foreign countries located in Australia can be found at www.dfat.gov.au/missions

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busIness stRuCtuResA business enterprise in Australia may be operated by an individual, a trust, a company, a joint venture, a partnership or a branch of a foreign company. Each of these has different legal and taxation implications.

Professional advice should be sought on which structure is best suited to the needs of individual investments and/or proponents.

Foreign investors may conduct business in Australia through any of these structures. However if limited liability is important to a foreign investor, a sole proprietorship (an individual running their own business) may not be suitable as it does not provide limited liability for the sole proprietor.

The most common choices for potential foreign investors include:• establishing an Australian subsidiary by registering or acquiring an Australian

company; and• registering as a ‘foreign company’.

In both cases, the corporate entity needs to be registered with the Australian Securities and Investments Commission (ASIC), and is governed by the Corporations Act (Cth) 2001.

More information on the requirements for establishing an Australian subsidiary of a foreign company, acquiring an Australian company, operating as a foreign company in Australia, joint ventures and partnerships can be gained from the:

• Australian Securities and Investments Commission www.asic.gov.au• Australian Securities Exchange www.asx.com.au• Australian Taxation Office www.ato.gov.au

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ChallenGes COmmOn tO many Investments In the nORtheRn teRRItORyThere are several challenges common to many investments in the Northern Territory and potential investors should understand how these challenges may affect any individual investment.

Scale – There may be a natural limit to the size of businesses targeting the local markets in the Northern Territory, and diversification may be a sensible strategy. The NT population is approximately 235,000 people, with 72% of the population concentrated into five major centres3. The relatively small population centres mean that the local market is limited, and the NT lacks the full range of specialist businesses evident in other major Australian economies. The limited size of the local market means that it is often more efficient to import products than to produce them locally, and the local market may not provide a firm springboard for some businesses to expand into export markets.

However a more positive feature is that there may only be room for a handful of competitors serving the local market, and this may work to the advantage of businesses that are able to deliver a sustainable point of difference that allows them to gain a healthy market share.

Distance – Distances in the NT often mean greater delays in accessing the physical products, services and support required. While the road, rail, air and marine infrastructure is excellent in the major centres, this does not extend to areas ‘off the beaten track’. For businesses dealing in physical products and services a different approach to managing inventories, work and travel schedules is required.

Isolation – The relative isolation of the major onshore and offshore mineral and energy fields means these facilities are generally expensive to develop. This creates great opportunities for supporting businesses to establish, service and supply those operations because there is no supplier in close proximity. Isolation can forge strong alliances and it is common for these successful connections to expand to other locations once the partnership has proven successful.

Weather – The Northern Territory experiences Australia’s harshest weather extremes, requiring machinery and structures to be made to higher standards. Business interruptions may be caused by cyclone activity, flooding or damage to transport infrastructure and it can take weeks for full services to be restored. Many of the potential downsides of the NT’s weather extremes can be mitigated by anticipating its effects and having appropriate risk management plans in place.

Weather extremes can also deliver economic benefits. For example, extreme wet weather in the Top End can generate export and tourism income because the rain has boosted feed production on pastoral properties, or created ideal nursery conditions for commercial and recreational fisheries.

© Tourism NT

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Comparatively high cost base – Businesses in the Northern Territory may operate at a higher cost base than comparable businesses operating elsewhere in Australia because of higher input costs. For example, fuel and energy can comprise up to 30% of production costs on pastoral stations. A comparatively high cost base may make individual businesses more financially vulnerable if the business operates at lower margins than its competitors.

Some businesses opt to deliver a premium product or service to generate a more satisfactory margin – e.g. luxury accommodation or tourism, or higher quality produce. However demand for premium products often suffers if there is economic uncertainty or contraction. In these instances it may be prudent for these businesses to take a more conservative stance when planning the financial aspects of their business. This may include retaining sufficient cash reserves to cover expenses during downturns in the trading cycle, adopting a more cautious attitude to the level of debt held by the business, or using conservative assumptions when developing budgets.

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ClImate ChanGe and the pOtentIal effeCts On the nORtheRn teRRItORyModelling by the Australian Bureau of Meteorology4 suggests the impacts of climate change on the Northern Territory will differ between the Top End and central Australia:

• The number of hotter days is likely to substantially increase in both northern and southern regions;

• Temperature increases in the northern regions are expected to be less than southern areas;

• The already highly variable rainfall in Central Australia is predicted to decrease significantly; and

• Tropical cyclones are predicted to increase in severity, if not frequency, with consequent storm surge, flooding and wind damage impacts to the Top End in particular.

The direct impacts of climate change on the agricultural sector in the Top End of the Northern Territory in particular are predicted to be less severe compared to other primary production areas across Australia. This may make regions of the NT more attractive to potential investors than other areas in Australia.

The agricultural production systems in the NT are already designed around significant variations in climate across seasons each year5, making adaptation to the future impacts of climate change easier to incorporate into existing management practices.

The trends toward reducing CO2 emissions, improving how we use water, and changing community values could see a shift towards more plant based industries because carbon sequestration is higher for plant industries. There is increasing interest in various forms of carbon sequestration through plant-based enterprises. This includes growing biofuels, carbon capture in plants, or capturing CO2 in soils. Investors have been looking at the Northern Territory as having potential in this new industry for several years.

Some Indigenous land owners have managed to generate carbon credits through accredited techniques for burning savannah landscapes in the north of the Northern Territory. While the business arrangements are commercial in confidence, research suggests that such activity generates profits of around $1.92 per hectare based on a price for carbon credits of $23 per metric tonne6. The profitability of these enterprises is clearly sensitive to operating costs, the number of credits that can be claimed in any season and the revenue that can be gained from selling the carbon credits.

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CROWn landIn Australia the term ‘Crown land’ refers to land that originally belonged to the monarch of the British Empire, which has not yet been transferred to another form of ownership. Public lands are considered to be Crown land, including vacant land and land for nature conservation. Crown land accounts for around 23% of Australia’s land mass, and around half of this is unoccupied or vacant land.

Today Crown land is held and managed by a state, territory, or the Australian Government. The only Crown land held by the Australian Government comprises land in the Northern Territory, the Australian Capital Territory, and small areas acquired for airports or defence. The amount of Crown land in the NT amounts to a significant estate, which is managed and administered by the NT Department of Lands, Planning and the Environment.

There are nine separate pieces of legislation that directly impinge on the access to, use of, and activities permitted on Crown land in the Northern Territory. Advice should be sought from the NT Department of Lands, Planning and the Environment if investors are interested in any specific parcels of Crown land. This department is the sole NT Government agency responsible for the sale of Crown land and real property owned by the NT Government.

A public competitive process is the usual method for the sale of Crown land for commercial, residential or other specific purposes. The sale process may be conducted by auction, expressions of interest, tender or by ballot. The NT Government Minister for Lands, Planning and the Environment may select the most appropriate means for the sale of Crown land after considering the particular circumstances.

Crown land may be made available or released to the market for a variety of purposes such as:

• use by community organisations such as sporting, cultural, education or charitable groups

• residential development

• industrial development

• gricultural and pastoral uses

Online applications such as the NT Atlas may help potential investors identify land that may be suited to their needs. Visit www.lands.nt.gov.au/land-info/ntlis/online-applications

Further information on Crown land and access to Crown land can be obtained from the NT Department of Lands, Planning and the Environment. Visit www.lands.nt.gov.au/land-admin/crown-land-sales

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demOGRaphIC InfORmatIOnThe resident population of the Northern Territory as at December 2012 was estimated by the Australian Bureau of Statistics to be 235,182. However the population is highly urbanised despite the vast area of the Territory, with 72% of the population residing in five major population centres (Darwin & suburbs, Alice Springs, Palmerston, Katherine and Nhulunbuy).

The break-up of the estimated resident population across the NT was as follows:

Estimates as at December 2012

Area Resident Population3

Labour Force3

Unemployment Rate7

Darwin City & inner suburbs 25,109 52,217 1.9%

All of Greater Darwin 131,938 80,581 2.1%

Daly, Tiwi & West Arnhem Division 18,334 6,422 11.8%

East Arnhem 16,200 7,461 6.1%

Katherine 20,780 9,477 7.3%

Barkly 6,659 2,673 7.9%

Alice Springs 41,271 23,075 6.0%

Total 235,182 125,607 4.0%

Chart 2: Annual percentage change in population growth in 2012

NSW Vic Qld WA SA Tas ACT NT Aust

%

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

Source: Australian Bureau of Statistics catalogue 3101.0, published December 2012

Year ended June

Australia

Northern Territory

Chart 1: Annual percentage change in population growth

Source: Australian Bureau of Statistics catalogue 3101.0, published December 2012

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

%

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

© Tourism NT

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More information on the demographics of the NT population can be obtained from:

• The Australian Bureau of Statistics www.censusdata.abs.gov.au

• Northern Institute, a school of Charles Darwin University www.cdu.edu.au/the-northern-institute/research-brief-series

Chart 3: Annual population changes affecting population growth in the Northern Territory

Chart 4: Age profile of the Northern Territory population in December 2012

2004 2005 2006 2007 2008 2009 2010 2011 2012

Year ended June

Net interstate migration

Natural Increase

Net overseas migration

Number

Source: Australian Bureau of Statistics catalogue 3101.0, published December 2012

4000

3000

2000

1000

0

-1000

-2000

-3000

Source: Australian Bureau of Statistics catalogue 3101.0, published December 2012

15,000 10,000 5,000 0 5,000 10,000 15,000

100 and over95-9990-4785-8980-8475-7970-7465-6960-6455-5950-5445-4940-4435-3930-3425-2920-2415-1910-14

5-90-4

Males Females

Age

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eleCtRICIty and pOWeR avaIlabIlIty and manaGementThe Northern Territory electricity market operates independently of any other state or territory in Australia because the challenges of distance have made it uneconomic to connect into the grid connecting the eastern states, or to Western Australia.

The supply of electricity to residents and businesses in the major settlements in the Northern Territory is managed by a vertically integrated, wholly NT Government-owned utility, the Power and Water Corporation (PowerWater). This arrangement emerged because of the challenges of supplying a relatively small population spread over a vast area, in communities of vastly different sizes, and markedly different climatic zones.

Small communities and large businesses in remote areas that are not serviced by PowerWater (such as pastoral stations, Aboriginal outstations, tourism businesses, roadhouses or mines) generate their own electricity largely through diesel-powered generators, although solar technology is increasingly common.

PowerWater generates, distributes and retails electricity in the Northern Territory, using gas, diesel and solar technologies to power major cities and remote communities spread across 1.3 million square kilometres:

• Natural gas supplies 98% of the fuel required by PowerWater to service the major communities, using gas sourced from the Blacktip field in Western Australian waters.

• PowerWater operates eight minor power stations in smaller townships and 68 remote community power stations, all largely diesel powered. PowerWater is assessing further opportunities to supply gas to remote communities and seeks to identify new markets for natural gas sales.

• PowerWater has trialled solar power for more than 20 years and pioneered combined diesel-solar generation in six remote communities. Total generation capacity is 473 Megawatts.

There have been some moves towards generating electricity from renewable energy sources in the Northern Territory, with solar photovoltaic array technology (solar PV), wind and even tidal power being trialed. There has been significant investment in solar PV arrays particularly in Central Australia with the possibility of more to come. Based on current technology, the wind resources in the NT are neither consistent nor widespread enough to be viable at more than a handful of locations. A tidal project just to the north of Darwin is still in its infancy but is intended to supply power to Darwin in late 2015.

For more information about the Power and Water Corporation visit www.powerwater.com.au

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fInanCe and aCCess tO CapItal In the nORtheRn teRRItORyAll the major Australian banks have a physical presence in the major towns in the Northern Territory, and service all segments of the market from consumers to small, corporate and institutional banking clients. The major Australian banks offer the full range of transactional, equipment, project, development, trade and bridging finance services, as well as international banking facilities, foreign exchange, wealth management and private banking services.

International and investment banks generally service their Northern Territory clients from offices in other Australian capital cities.

The oversight and regulation of banking and finance activities in the Northern Territory is the responsibility of national regulators, and this ensures that NT businesses are treated to the same high levels of oversight as operators in other states and territories.

There are also specialised finance players in the Northern Territory such as credit unions, insurance brokers, stockbrokers, salary packaging firms, financial planning and wealth advisory firms.

Both private and public companies operating in the NT can raise equity capital using national and international advisory and broking firms active in the private and equity markets. Some of these firms have offices in the NT. There are extensive requirements and obligations when both private and publicly companies raise capital, and professional advice should be sought.

More information on the requirements and obligations involved when businesses are seeking equity capital can be sourced from:

• Australian Securities and Investments Commission www.asic.gov.au• Australian Securities Exchange www.asx.com.au• Australian Taxation Office www.ato.gov.au

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fOReIGn dIReCt InvestmentForeign investment has always played a key role in the economic development of Australia and the Northern Territory. Foreign investment in the Northern Territory occurs in two ways:

Directly – where offshore funds are invested in specific opportunities or projects. Many past projects have required a large amount of capital to be invested before projects generate returns, and these investment opportunities have been attractive to foreign investors

Indirectly - when financial firms raise capital offshore and then subsequently lend funds to Australian businesses. The origin of the funds is irrelevant to the Australian businesses, but the financial firm still repays the funds to the offshore provider

It is common practice in most countries to ensure that direct investment from foreign investors is consistent with that country’s national interests, and Australia takes a similar stance. Australia’s foreign investment policy provides for Australian Government scrutiny of many proposed foreign purchases of Australian businesses and properties. The Government has the power under the Foreign Acquisitions and Takeovers Act 1975 to block proposals that are determined to be contrary to the national interest. The Act also provides legislative backing for ensuring compliance with the policy.

In the majority of industry sectors, smaller proposals are exempt from notification and larger proposals are approved unless judged contrary to the national interest. The screening process undertaken by the Foreign Investment Review Board (FIRB) enables comments to be obtained from relevant parties and other government agencies in considering whether larger or more sensitive foreign investment proposals are contrary to the national interest. All proposals involving foreign governments are subject to the FIRB process.

The Australian Government determines what is ‘contrary to the national interest’ by having regard to the widely held community concerns of Australians. Reflecting community concerns, specific restrictions on foreign investment are in force in more sensitive sectors such as the media and developed residential real estate. The screening process provides a clear and simple mechanism for reviewing the operations of foreign investors in Australia whenever they seek to establish or acquire new business interests or purchase additional properties. In this way the government is able to put pressure on foreign investors to operate in Australia as good corporate citizens if they wish to extend their activities in Australia.

Additional information on Australia’s foreign investment policy and the process that applies can be sourced from the Foreign Investment Review Board visit www.firb.gov.au

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fOReIGn OWneRshIpThe Northern Territory (NT) welcomes foreign investment, keeping in mind that Australia’s national foreign investment policy applies to all states and territories, including the NT.

The history of foreign ownership of assets in the Northern Territory varies according to industry:

Agriculture - A number of US and UK firms have invested in the pastoral sector since European settlement, and have played a key role in introducing new techniques, opening up new areas and investing in new infrastructure that has allowed other industries to develop alongside the pastoral industry. Asian firms are increasingly taking an interest in the pastoral sector, at least partly motivated by a desire to secure steady supplies of product and diversify food sources for their own businesses. European firms specialising in luxury products have invested in crocodile farms to guarantee access to high quality skins.

Commercial property – Developing and owning commercial property in Darwin has been attractive to foreign investors. The commercial and industrial property sector is seen as an increasingly attractive sector for some foreign investors given the momentum and outlook of the NT’s resources sectors.

Minerals – There is significant investment by foreign public and private firms in the Northern Territory minerals industry. International firms such as BHP Billiton, Rio Tinto and Xstrata have major mines operating in the NT, and there are multiple smaller operations that include foreign firms or shareholders.

Offshore energy – Equity ownership in offshore reserves and associated ownership of associated onshore facilities (LNG, operating and under construction) is owned by foreign public and national petroleum companies. Some major Australian national petroleum companies also have equity in these reserves and facilities. There is a higher equity representation of Australian ownership in exploration permits, which would be expected to be sold down, quite possibly to foreign companies during exploration, appraisal and development. Foreign ownership in the energy sector broadly comes from a mix of Asian, North American and European interests.

Onshore energy – There is significant investment by foreign public and private firms in the onshore energy industry, with many of these investments capitalising on earlier exploration work undertaken by smaller firms. There is limited onshore production at this time but interest from foreign investors is expected to increase as reserves are discovered and proven, and as downstream processing options are progressed.

Pipelines – There are approximately 3,500 km of gas pipelines within the Northern Territory land and inland water areas, or connecting to the Territory from offshore waters. The majority of existing and committed offshore pipelines are owned by the resource developer and/or operator and are largely foreign owned. The majority of onshore

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pipelines are owned by a mix of Australian and foreign infrastructure investors. There is strong interest by both Australian and foreign interests to participate in future expansion of gas pipeline infrastructure in all roles including constructor, operator, owner and financier.

Transport – Genesee & Wyoming Australia, a wholly owned subsidiary of Genesee & Wyoming Inc., has the concession to operate the AustralAsia railway until 2054.

Tourism – Foreign investors own significant tourism assets in the Northern Territory including the tourist rail service on the Darwin to Adelaide rail line known as The Ghan, casinos in Darwin and Alice Springs, and specialist charter and tour packaging services.

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fReehOld land avaIlabIlItyFreehold land is land owned absolutely by the owner, with ownership registered as a freehold title. The registered land owner is able to use the land as they choose, provided they comply with the relevant zoning that determines the permitted, discretionary and prohibited land uses, and other laws and planning requirements.

If potential investors are interested in leasing or acquiring existing freehold land they should approach the existing land owner to assess if the land is available, under what terms, and at what cost. Online applications such as the NT Atlas may help potential investors identify land that may be suited to their needs. Visit www.lands.nt.gov.au/land-info/ntlis/online-applications

Land granted to Indigenous people under the Aboriginal Land Rights (Northern Territory) Act is owned as freehold land, held under an Aboriginal freehold title to distinguish it from other types of freehold title. Aboriginal freehold land is held by a Land Trust for the benefit of the Aboriginals concerned. A Land Trust must act in accordance with a direction given to it by the land council for the area concerned. There are four land councils in the Northern Territory:

• Northern Land Council

• Central Land Council

• Tiwi Land Council

• Anindilyakwa Land Council

The functions of land councils include consulting with traditional Aboriginal owners with respect to any proposal relating to the use of their land.

If potential investors are interested in leasing existing Aboriginal freehold land they should approach the relevant land council to assess if the land is available, under what terms, and at what cost.

Discussions and negotiations with private land owners and land councils are private and normally commercial in confidence, and traditionally government is not involved. However, if there is some proposed change in the use of the land, or if there is a proposed sub-division or aggregation of neighbouring lots, then approval will need to be sought under the NT Planning Scheme or other relevant NT law.

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Gas supplIes and dOmestIC avaIlabIlItyWhile the gas supply and demand situation onshore is dominated by the export-oriented LNG industry, there is a long history of natural gas consumption in the Northern Territory domestic market:

• Nearly all power generation is fuelled by natural gas and a gas pipeline shadows the Stuart Highway extending almost the full length of the NT, as well as a distribution pipeline delivering gas to the East Arm Logistics Precinct.

• While there is some discussion around the life of contracted gas supplies in the short term, the outlook for a growing gas supply is bright, with increasing exploration activity for shale oil and gas across the length and breadth of the NT.

• The Northern Territory Government has reaffirmed its position that there is no policy for reserving a portion of existing or potential natural gas resources to supply the NT or the Australian market. This policy position is designed to provide incentive and certainty to petroleum companies to invest in exploration and development, thereby growing the market.

• Liquefied Petroleum Gas (LPG) is reticulated through part of the Darwin CBD and bottled LPG is used by the industrial and commercial sectors, as well as by households for cooking. There are a number of existing suppliers of gas for residential or industrial purposes in the Northern Territory and their details are available in local or national business directories.

Additional information on Northern Territory gas resources and projects can be obtained from the NT Department of Mines and Energy. Visit www.minerals.nt.gov.au

February 2013 A13-066.ai

THE PRINCIPALNORTHERN TERRITORY

OFFSHORE AREA

JOINT PETROLEUM

DEVELOPMENT AREA

THE TERRITORY OFASHMORE &

CARTIER ISLANDS OFFSHORE AREA

Ichthys to Darwin gas pipeline

Sahul Platform

Goulburn Graben

Darwin ShelfArafura Bas inArafura Bas in

Carpentar ia Bas inCarpentar ia Bas in

Money Shoal Bas in

Money Shoal Bas in

Bonapar teBas in

Bonapar teBas in

Browse Bas inBrowse Bas in

G U L FO F

C A R P E N TA R I A

A R A F U R AS E A

T I M O R S E A

I N D I A N O C E A N

CORALLINALAMINARIA

EVANS SHOALSOUTH

ELANG / KAKATUA

BAYU-UNDANBUFFALO

KRILL

KITANHINGKIP

Kalumburu

WEABER

ABADI

BAROSSA CALDITA

EVANS SHOAL

BLACKWOOD

PROMETHEUS

TERN

PETREL

BLACKTIP

BARNETT

TURTLE

VIENTA

BULLER KUDA TASI

AUDACIOUSKATANDRA

JABIRU

CHALLIS / CASSINI

TALBOT

SWALLOW

BILYARA

SWIFT

CRUX

LIBRAARGUS

TOROSA

CALLIANCE

BRECKNOCK

SEA EAGLE

PADTHAWAY

SKUA

PUFFINVESTA

SWAN

CASH/MAPLE

TENACIOUSBRONTOSAURUS

OLIVER

BREWSTER

ECHUCA SHOALS

MIMIAPRELUDE

ICHTHYS

JAHAL CHUDITCH

GREATERSUNRISE

MONTARA

HERON

KELP

FRIGATE

POSEIDONKRONOS

CONCERTO

BURNSIDE

CROWN

BOREASZEPHROS

TAHBILK

Katherine

W E S T E R N

A U S T R A L I A

Q U E E N S L A N D

N O R T H E R N T E R R I T O R Y

TRUSCOTTAIRBASE

Dili

Kupang

Oecusse

TIMOR LESTE

WEST TIMOR

Jabiru

NhulunbuyDARWIN

Broome

Borroloola

Kununurra

0 100km

producing oil field

shutdown/suspended oil field

abandoned oil field

oil discovery

oil and gas discovery

production storage vessel

producing oil and gas field

platform

producing gas field

gas discovery

gas pipeline

confirmed gas pipeline

Northern Endeavour

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GOveRnment – the dIffeRent levels Of GOveRnment and theIR ROle In InvestmentAustralia is a federation of states and territories with three levels of government:

• The Commonwealth (or Australian) Government

• State or territory government

• Local government

Each level of government has different powers and responsibilities although Australian and state or territory government responsibilities may sometimes overlap.

The Australian Government was created in 1901 when several colonies voluntarily agreed to form a federation as defined in a Constitution. The primary purpose of forming the federation was to form a national government empowered to make decisions on behalf of all members. Today, the federation comprises six states and several territories, including the Northern Territory, the Australian Capital Territory and the Australian Antarctic Territory.

A brief summary of the impact of the Australian Government on potential investment proposals in the Northern Territory is as follows:

• The states and territories retain their independence over some areas, but have relinquished control over other areas such as the ability to collect income tax, to operate different currencies, and many regulatory standards and defence activities.

• States and territories have less ability to raise revenue compared to the Australian Government, but do have significant responsibilities for delivering services such as health care, education and policing.

• The Australian Government has strong powers to raise revenue, for example, and may then redistribute this revenue to the states and territories under various funding agreements.

• Australian Government approval is generally not required for most proposed investments to proceed, unless an investment proposal is large, significant, or involves aspects such as environmental or regulatory approvals that fall under Australian law and oversight. In these instances the Australian Government may be a critical determinant of if, when and how a proposed investment may proceed.

• Once any investment or business is in place it is expected to comply with all Australian Government requirements such as taxation and regulation and compliance with international obligations such as free trade agreements, regardless of whether authority from the Australian Government was required for the investment to proceed.

More information on the role of the Australian Government in relation to investment can be found at www.australia.gov.au

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The Northern Territory is one of several territories remaining in the Australian federation, and the territories generally have less autonomy over some areas than the Australian states. Important aspects of the Northern Territory Government relevant to potential investment include:

• The Northern Territory’s powers arise from a Commonwealth law called the Northern Territory (Self-Government) Act 1978 which provides limited state-like powers to the NT Government.

• The Commonwealth retains certain powers such as responsibility for industrial relations, uranium mining, rights in respect of Aboriginal land and national parks, and as a member of the Commonwealth, the Northern Territory is expected to abide by these powers.

• A single statutory planning document, the Northern Territory Planning Scheme, applies to the whole of the Northern Territory. It contains planning principles which are the Government’s commitment to outcomes for land-use planning and development control. The Development Consent Authority, rather than local government authorities, is responsible for determining development applications in accordance with the Northern Territory Planning Scheme. More information on the Northern Territory Planning Scheme can be found on the NT Department of Lands, Planning & Environment website www.lands.nt.gov.au/planning/planning-scheme

In late 2012, the Northern Territory Government amended the Planning Act to establish the Northern Territory Planning Commission. The Commission will guide land planning to support economic growth and to provide confidence and certainty for industry and community.

Local government in the Northern Territory consists of 16 shires or municipalities, and around half of these are responsible for managing infrastructure and services over a large area:

• Local government is responsible for functions delegated by the Northern Territory parliament, such as road infrastructure and waste management. Revenue for local government comes mostly from property taxes and grants from the NT Government.

• The NT Government has a dedicated department to support and assist local government, and the two levels of government collaborate where possible to support the delivery of services and infrastructure to NT residents.

• Under the Northern Territory’s Planning Act local government authorities are invited make submissions about developments proposed within their local government area. These submissions are considered by the Development Consent Authority when assessing proposals.

• Individual projects or proposals may need to comply with local by-laws or requirements set by the respective local government bodies, so it is recommended that prospective proponents approach local government very early on in the process to clarify requirements and expectations.

More information on local governments in the Northern Territory can be obtained from the NT Department of Local Government and Regions. Visit www.localgovernment.nt.gov.au

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V I C T O R I A H I G H W A YS

TUA

RT H

I GH W

AY

C E N T R A L A R N H E M RO A D

A R N H E M H I G H W A Y

KAK A D U H

I GH W AY

STU

A RT

H I GHW

AY

C A R P E N T A R I A H I G H W A Y

TAB

LEL A

ND

S H

I GH

WA Y

B A R K L Y H I G H W A Y

L A S S E T E R H I G H W A Y

P L E N T Y H I G H W A Y

TA N A MI H I G

H WAY

B U N T I N E H I G H W A Y

Mataranka

Pine Creek

Katherine

Daly Waters

Larrimah

Tennant Creek

Elliott

Newcastle Waters

Timber Creek

Alyangula

Nhulunbuy

Jabiru

Alice Springs

Ti Tree

Yulara

Kulgera

DarwinPalmerston

Adelaide River

Batchelor

Borroloola

VICTORIA-DALY SHIRE

ROPER GULFSHIRE

WEST ARNHEMSHIRE

DARWIN

TIWI ISLANDSSHIRE

BELYUEN SHIRE

COOMALIE SHIRE

WAGAIT SHIRE

LITCHFIELD MUNICIPALITYPALMERSTON MUNICIPALITY

KATHERINEMUNICIPALITY

DARWIN RATESACT AREA

MACDONNELL SHIRE

CENTRAL DESERT SHIRE

BARKLY SHIRE

EAST ARNHEMSHIRE

ALICE SPRINGSMUNICIPALITY

UN-INCORPORATED(YULARA)

Northern Territory Land Regions

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IndustRy assOCIatIOns In the nORtheRn teRRItORy

Association Focus Contact details

Australia-China Business Council

ACBC The Australia China Business Council (ACBC) is the premier business organisation dedicated to promoting business and trade between Australia and the People’s Republic of China. The NT branch operates closely with business and Government to improve the understanding of business and business relations in China.

+61 8 8927 0061 +61 8 8927 0125 [email protected]

www.acbc.com.au

Australian Hoteliers Association

AHA The AHA (NT) is the leading Territory hospitality industry association representivng the rights and interests of its members to Territory, Federal and local governments, other relevant parties and the community.

+61 8 8981 3650 +61 8 8981 5754

www.ahant.com.au

Australian Industry Defence Network

AIDN AIDN-NT is the premier representative body for small to medium enterprises working in the defence industry in the Northern Territory.

+61 8 8947 2033 +61 8 8947 2944 [email protected]

www.aidnnt.org.au

Australian Institute of Company Directors

AICD Australia’s pre-eminent organisation for directors, dedicated to making a difference in the quality of governance and directorship.

1300 739 119 [email protected]

www.companydirectors.com.au

Chamber of Commerce

The peak representative body for the Northern Territory’s private sector. Its international, trade and commerce division provides advice and information on exporting, importing and other trade-related activities.

+61 8 8982 8100 +61 8 8981 1405 [email protected]

www.chambernt.com.au

Housing Industry Association

HIA The association represents residential sector builders, trade contractors, design professionals, kitchen and bathroom specialists, manufacturers and suppliers.

+61 8 8941 2777 +61 8 8941 6999 [email protected]

http://hia.com.au/hia/region/nt.aspx

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Association Focus Contact details

Industry Capability Network

ICN The network identifies, develops and matches opportunities to Northern Territory and Australian businesses.

+61 8 8922 9422 +61 8 8922 9430 [email protected]

www.icnnt.org.au

Local Government Association

LGANT The single peak body representing local government in the Northern Territory

+61 8 8944 9688 +61 8 8941 2665 [email protected]

www.lgant.asn.au

Master Builders Association

MBA Originally formed to represent the interests of builders, the association provides representation, service and advice to members and the industry in key areas such as industrial relations, occupational health and safety, training, business development, traineeships, government regulations and legislation.

+61 8 8922 9666 +61 8 8922 9600 [email protected]

www.mbant.com.au

Northern Territory Cattlemen’s Association

NTCA The peak primary industry lobby group in the Northern Territory.

The NTCA represents more than 90% of pastoral operations, from small family operations to large corporate organisations. Members manage a landmass in excess of 620,000 square kilometres producing around 500,000 high quality cattle per year.

+61 8 8981 5976 +61 8 8981 9527 [email protected]

www.ntca.org.au

NT Indigenous Business Network

NT IBN The NTIBN provides business support, service provision, policy input and advice, network and promotion of Northern Territory businesses.

+61 8 8999 8565 [email protected]

www.ntibn.com.au

Northern Territory Horticultural Association

NTHA The Northern Territory Horticultural Association is an industry organisation directed by a council whose voluntary members and office bearers are elected by members of their relevant industry commodity groups.

+61 8 8983 3233 +61 8 8983 3244 [email protected]

www.ntha.com.au

Northern Territory Seafood Council

NTSC The peak representative body of the seafood industry in the Northern Territory, representing 222 businesses.

+61 8 8981 5194 +61 8 8981 5063 [email protected]

www.ntsc.com.au

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Association Focus Contact details

Property Council

PCA The Property Council of Australia is represented in the Territory by the Northern Territory Division and is the primary membership body for local property owners.

+61 8 8943 0666 +61 8 8941 0848 [email protected]

www.propertyoz.com.au/NT

Real Estate Institute of the Northern Territory

REINT A professional membership organisation representing the real estate industry in the Northern Territory. It is dedicated to providing products and services to members to assist them in providing superior service to their clients.

+61 8 8981 8905 +61 8 8981 3683 [email protected]

www.reint.com.au

Tourism Central Australia

TCA The regional tourist association for the Central Australian region of the Northern Territory.

+61 8 8980 6000 [email protected]

www.discovercentralaustralia.com

Tourism Top End

TTE The regional tourist association for the Top End of the Northern Territory.

+61 8 8980 6000 [email protected]

www.tourismtopend.com.au

Urban Development Institute of Australia

UDIA The UDIA (NT) represents the local property development industry. It was established in 2009 and includes a board of 13 members with expertise drawn from Australia wide development, finance, quantity surveying and accounting industries.

+61 8 8943 9977 [email protected]

www.udiant.com.au

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labOuR avaIlabIlIty and COstIn December 2012, the Northern Territory had an estimated resident population estimated of 235,0007 people, and an estimated 125,0007 persons employed.

This excludes approximately 5,000 ‘temporary’ residents8 who were identified as fly-in, fly-out or drive-in, drive-out workers employed at several mine and resource projects, construction and other industries, whose home address was elsewhere in Australia.

The Northern Territory’s workforce participation rate was around 74% in December 2012, the highest in Australia.

The unemployment rate in the Northern Territory in December 2012 was 4.0%, the lowest of the Australian jurisdictions, although this masked significant variations between regions with the unemployment rate for the Greater Darwin region estimated at 2.1%, compared to the Barkly region at 7.9%.

The cost of labour in the Northern Territory is generally, but not always, higher than in other regions of Australia. In November 2012 average weekly earnings in the NT were $1,502, third highest of the jurisdictions behind the Australian Capital Territory and Western Australia. However, the employment mix differs between states and territories and comparisons should be made with some caution.

Potential investors should be aware of several factors influencing the cost of labour in the Northern Territory:• The relatively small labour pool means there is limited spare capacity and less ability

to cope with large increases in demand as result of major project development.• The population has a significant transient element, with on average 13,000 people

moving to the Territory each year. The majority of this transient segment is relocating for work reasons, with many staying for several years.

• The relatively small labour pool and transient nature of the workforce creates opportunities in some industries for staff to be promoted perhaps faster than in similar areas of Australia.

• The reputation of the Northern Territory as being a high cost place to live means that people considering migrating to the NT may ask for higher wages to compensate for the higher cost of living.

• The remoteness of many business activities, combined with the reputation of being a high-cost place to live, results in many employers either providing or offering financial assistance with housing and/or travel allowances. While not strictly part of the employee’s wages, this additional support can lead to higher total employment costs for the employer.

• The supply and cost of labour can hinder labour-intensive industries during peak periods. Industries such as horticulture, hospitality and construction that have seasonal peaks in workload often rely on working holiday makers to fill the demand for labour.

Additional information on the labour market in the Northern Territory can be obtained from www.dob.nt.gov.au

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land OWneRshIp and tenuReRights to own, access or use land are influenced by a number of factors. The following definitions are relevant to land use, ownership and tenure.

Term Definition

Aboriginal freehold

Aboriginal freehold is a type of freehold tenure applying to land granted under the Aboriginal Land Rights Act (NT) 1976. Though simply recorded in the Land Titles Register as ‘Freehold’, land held under Aboriginal freehold title cannot be sold or acquired. Access is regulated by a permit system and mining approvals are subject to a special procedure.

Brownfield A developed site, generally in an urban area, no longer wholly used for the purpose for which it was developed

Crown land Crown land includes freehold land in the name of the Northern Territory of Australia and land which has no official tenure under land legislation and is held and managed by a state, territory, or the Australian Government. The government may licence the use of such land for specific purposes such as grazing livestock, or may alienate the land by selling or leasing. Vacant Crown land is Crown land currently not being used or reserved for any future purpose.

Crown lease A lease of Crown land that can be issued under a variety of legislation and which grants the holder certain uses of the land. For example, a Pastoral Lease is issued under the Pastoral Land Act.

Easement This gives an individual or company a right to use or engage in some activity over land that is owned by someone else. For example, a sewerage easement to the Power and Water Corporation gives the corporation certain rights.

Freehold Absolute ownership of land, subject to limitations imposed by legislation e.g. planning laws.

Greenfield An undeveloped site for which development is proposed. Greenfield sites are typically on the periphery of, or outside, existing urban areas.

Infill site A site generally within urban boundaries that has access to key services such as power, water or gas networks, that may be suited to further development.

Land claim A claim made over land as allowed under the Aboriginal Land Rights (Northern Territory) Act (NT) 1976.

Lease A grant of possession of property for a number of years at a specific rental and subject to specific conditions.

Leasehold land

Land subject to a lease, occupied by a tenant or lessee, under terms agreed with the land owner, or lessor.

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Term Definition

Native title Native title is a parcel of rights that can range from a mere right of access to particular land to full and exclusive ‘ownership’ of land. Exclusive native title will allow the native title holders to regulate access to the land.

Recognition of native title does not result in the grant of title (compare with Aboriginal freehold). Recognition of native title is governed by the Native Title Act 1993. Native title cannot be sold or transferred but it can be surrendered to government.

Real property A piece of land owned by a person.

Stock route A strip of land reserved for the droving of livestock. Stock routes may be hundreds of kilometres long and usually incorporate watering points and grazing areas.

Tenure Tenure is the system of holding land or property. It does not equate to ownership since, unlike goods, land cannot be possessed by one person in absolute ownership. For example, Freehold is the highest form of tenure because the rights of the Crown with regard to the use of the land are at a minimum.

Additional information can be gained from the NT Department of Lands, Planning and the Environment, visit www.lands.nt.gov.au

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land useThe approved zoning for a particular plot of land determines the permitted, discretionary and prohibited land uses, and therefore the activities permitted on particular pieces of land. The zoning system is determined by the Northern Territory Planning Scheme, which is administered by the NT Department of Lands, Planning and the Environment.

There are several areas of the NT where land is not zoned, but controls apply over land use. Advice should be sought from the NT Department of Lands, Planning and the Environment before any activities are undertaken on these areas.

The Northern Territory Planning Scheme determines many of the boundaries that proposed developments must comply with. Additional information on the Planning Scheme including zoning maps, can be found from the NT Department of Lands, Planning and the Environment website visit www.lands.nt.gov.au/planning/planning

The zoning system used in the NT is as follows:Land use categories and abbreviations Brief explanation

Residential Single density SD The primary purpose of Zone SD is to provide for single dwellings on individual lots.

Multiple dwelling MD

The primary purpose of Zone MD is to provide for a range of housing options to a maximum height of two storeys above ground level.

Medium density MR

The primary purpose of Zone MR is to provide for a range of housing options to a maximum height of four storeys above ground level.

High density residential HR

The primary purpose of Zone HR is to provide high density housing options close to major roads, schools and other community facilities.

Caravan parks CV The primary purpose of Zone CV is to provide for

caravan parks.

Community living CL The primary purpose of Zone CL is to provide for

community living.

CommercialCentral Business CB

The primary purpose of Zone CB is to provide for a diversity of activities including administrative, judicial, professional, office, entertainment, cultural, residential and retail and other business activities with a commitment to the separation of incompatible activities.

Commercial C The primary purpose of Zone C is to provide for a range of business and community uses.

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Land use categories and abbreviations Brief explanation

Service commercial SC

The primary purpose of Zone SC is to provide for commercial activities which, because of the nature of their business or size of the population catchment, require large sites.

Tourist Commercial TC

The primary purpose of Zone TC is to provide for uses or development servicing tourism, including commercial and residential activities.

IndustrialLight industrial LI

The primary purpose of Zone LI is to provide for light industry uses or development activities that will not, by the nature of their operations, detrimentally affect adjoining or nearby land.

General industry GI The primary purpose of Zone GI is to provide for

general industry.

Development DV

The primary purpose of Zone DV is to provide for the development of major strategic industries including gas based, road, rail or port related industries. This zoning category provides for major industrial development that is of strategic importance to the future economic development of the Territory.

Recreation Public open space PS The primary purpose of Zone PS is to provide public

areas for recreational activity.

Organised recreation OR The primary purpose of Zone OR is to provide areas

for organised recreational activities.

RuralHorticulture H

The primary purpose of Zone H is to provide suitable land for horticulture. The minimum lot size is intended to maintain parcels that are commercially viable for horticulture.

Agriculture AThe primary purpose of Zone A is to provide suitable land for agriculture. Lot sizes will depend on the capability of the land for commercially viable agriculture.

Rural residential RR The primary purpose of Zone RR is to provide for rural

residential use.

Rural living RLThe primary purpose of Zone RL is to provide for low-density rural living and a range of rural land uses including agriculture and horticulture.

Rural RThe primary purpose of Zone R is to provide for a range of activities including residential, agricultural and other rural activities.

Infrastructure Main road M The primary purpose of Zone M is to identify land reserved for existing main roads.

Proposed main road PM The primary purpose of Zone PM is to identify land

reserved for proposed main roads.

Railway RW The primary purpose of Zone RW is to identify land reserved for railways.

Utilities UThe primary purpose of Zone U is to identify land reserved for utilities such power, water and gas providers.

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Land use categories and abbreviations Brief explanation

OtherCommunity purposes CP

The primary purpose of Zone CP is to provide for community services and facilities, whether publicly or privately owned or operated, including facilities for civic and government administration.

Conservation CN The primary purpose of Zone CN is to conserve and protect the flora, fauna and character of natural areas.

Heritage HTThe primary purpose of Zone HT is to conserve and enhance those elements that contribute to the heritage significance of an area.

Restricted development RD The purpose of Zone RD is to restrict development

near an airport.

Water management WM

The purpose of Zone WM is to restrict development within a water catchment area or other area providing surface or ground water for public water supplies.

Future development FD

Zone FD is an interim zone identifying an area that is intended for future rezoning and development in accordance with a current or proposed Area Plan.

Township TThe purpose of Zone T is to provide for development opportunities as they arise and for services and facilities to meet the needs of the local community, and optimise the use of existing infrastructure.

Specific use SU The purpose of Zone SU is to provide for specific uses not adequately covered by other zone types.

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majOR pROjeCt statusMajor Project Status describes the high level of assistance provided by the Northern Territory Government to selected projects assessed as having strategic importance, significant economic impact, and/or including a high level of complexity requiring careful coordination.

Not all significant projects seek major project status, and it is not suited to all potentially significant projects.

Projects granted major project status are deemed to warrant assistance in the form of enhanced coordination across Government agencies, streamlining of approval processes in some cases, and regular oversight by senior levels of the public service. In return these projects are expected to develop a local industry participation plan which demonstrates how the project will maximise opportunities for locals to gain employment or win contracts.

Major Project Status is conferred by a Cabinet sub-committee decision. A lead Agency will be nominated to act as the primary contact for the proponent and co-ordinate activity across Government to ensure that the project receives timely and efficient service from Government. Government will work with the proponent to identify and manage issues.

Investors who believe their proposal or project justifies Major Project Status are advised to proactively engage and gain the support of the Northern Territory department most suited to being the lead Agency supporting their project. Discussions held with this department will determine whether a recommendation of major project status is justified, and will be submitted to Cabinet for consideration.

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maps and GeOGRaphIC dataA variety of maps and geographical data sets are available, highlighting a range of features of the Northern Territory.

Land and spatial data

The Land Information Centres attached to the NT Department of Lands, Planning and the Environment can provide survey data showing land boundaries (i.e. the geodetic and cadastral infrastructure), aerial photography, satellite imagery and topographic information programs. Visit www.lands.nt.gov.au/land-info/land-information-centresThe NT Government maintains and manages the majority of land-related information in a system known as the Northern Territory Land Information System, or NTLIS. Various industry stakeholders have access to the system and advise on future development needs. This system supplies a number of online applications available to the general public that can be accessed from www.lands.nt.gov.au/land-info/ntlis/online-applications NT Atlas is one of the online applications available to the public, and allows users to view and query some of the more commonly used spatial information available from the Northern Territory Government. Users can search or filter using a wide variety of features such as individual land parcels, planning boundaries, ownership type and existing zoning, and can see where existing infrastructure such as roads, pipelines and railways are located. Visit www.lands.nt.gov.au/land-info/ntlis/online-applications

Geological data

The InfoCentre attached to the NT Department of Mines and Energy has a range of geoscientific information about the NT. The resources available include:• Minerals and onshore and offshore petroleum exploration reports, data

and samples;• Northern Territory Geological Survey publications and products; and• Access to the resources of the Mines and Energy library (onsite only).

Visit www.geoscience.nt.gov.au/InmagicGenie/opac.aspx

Soil, landscapes, native vegetation and water

The NT Department of Land Resource Management offers an online mapping application called NR Maps NT that allows users to discover, interrogate and map natural and cultural resource data and information. Data is currently available for:• Ground and surface water• Soils, Land Units, Land Use and Clearing • Vegetation Survey Boundaries • Northern Territory Parks and Reserves

The digital information used to operate NR Maps NT is available on request. Visit www.lrm.nt.gov.au/nrmapsnt

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maRItIme shIppInG seRvICes and avaIlabIlItyThe Northern Territory has a coastline of 10,950 kilometres, all exposed to cyclonic activity during the monsoon season extending from around October to March each year. The waters immediately off the cost are relatively shallow and the coastline is dominated by mangroves. The Territory is responsible for territorial waters, which extend 3 nautical miles offshore around the Territory coastline.

There are four well developed port facilities in the Northern Territory, and a number of less developed facilities used periodically by local communities, or for tourism purposes:

• The Port of Darwin operated by the Darwin Port Corporation, including container and bulk commodity capacity at East Arm Wharf, cruise ship berths at Stokes Hill wharf, a naval base, dedicated wharves for the Darwin LNG and INPEX LNG plants, several barge landings, a marine supply base, and numerous recreational and tourist-oriented ramp facilities.

• Gove Harbour at Nhulunbuy, operated by Pacific Aluminium, primarily for exports of alumina from the Gove alumina refinery.

• Alyangula Port on Groote Eylandt, operated by GEMCO, primarily for exports of manganese from the Groote Eylandt manganese mine.

• Bing Bong Port in the Gulf of Carpentaria, operated by McArthur River Mines, primarily for exports of zinc concentrate from the McArthur River Mine.

The primary port is the Port of Darwin, a naturally occurring deep water port adjacent to a major industrial and logistics handling precinct, and located within 6 kilometres of the central business district:

• The Port of Darwin is Australia’s closest port to South East Asian markets, making it Australia’s northern gateway. This strategic geographic location is fundamental to the high volume of trade flowing through the port in recent times and will play a significant role in growth into the future.

• The primary cargo facility within the Port of Darwin is East Arm Wharf. The port facilities at East Arm Wharf are connected to the national rail network through the Adelaide to Darwin railway and allow seamless movement of goods, including bulk mineral and bulk liquid trades.

• East Arm Wharf is well equipped to handle container and general cargo, bulk minerals and bulk liquids including petroleum, live cattle, and offshore oil and gas rig services. It is one of only two ports in Australia authorised to ship uranium oxide. The current facilities at East Arm Wharf include:

- A 754 metre berth that caters for vessels up to 80,000 tonnes including Panamax Class vessels;

- A gantry container crane with a lifting capacity of 70 tonnes;

- A container terminal with a capacity to handle 250,000 shipping containers per annum;

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• 18 hectares of sealed hardstand;

• A 4,000 m2 undercover cargo handling facility;

• A bulk-liquids berth designed to handle vessel capacity of 60,000 deadweight tonnage; and

• A bulk handling facility, including a rail bottom dump facility, stockpile areas and a bulk ship loader with a capacity to load 2,000 tonnes per hour.

• A new Marine Supply Base is being constructed adjacent to East Arm Wharf. The base will service oil and gas ships known as rig tenders, which will supply offshore oil and gas rigs with requirements including food, water and drilling equipment. Asco Holdings, an international oil and gas logistics company, is the operator of the facility to be completed in late 2013. The completion of this facility will provide East Arm Wharf with an additional 140 metres of usable quay line for use in other trades.

• The port plays a significant role as a supply, service and distribution base supporting research and exploration of the oil and gas reserves in the nearby Timor Sea.

• The Port of Darwin also hosts major naval activities and multi-national exercises involving approximately 100 visiting Australian and foreign warships each year.

Cruise ships also use the Port of Darwin, with 30 to 35 vessels carrying nearly 50,000 passengers and crew visiting per annum.

• Cruise ships visiting the Port of Darwin use the purpose-built Darwin Cruise Ship Terminal at Fort Hill Wharf, with overflow capacity at Stokes Hill Wharf.

• Fort Hill Wharf is 300 metres in length, with additional dolphin facility at the western end. Ships up to 350 metres can berth at Fort Hill Wharf. Stokes Hill Wharf can hold ships up to 200 metres in length and up to 30,000 GT. Fort Hill Wharf includes a passenger terminal, border security facilities, tourism zone and a roll-on-roll-off wharf for loading supplies. Fuel is currently available via tanker.

• Darwin Cruise Ship Terminal is located adjacent to the city centre, making it an ideal passenger facility due to its proximity to the CBD, tourism services and essential services such as medical, pharmaceutical and retail outlets.

• The Port of Darwin is also the northern gateway to Australia for cruise ship traffic. International cruise ships relocating to or from Asia view Darwin as their entry or exit point to Australia, and consider it a safe harbour to refuel and take on supplies.

Additional information on the maritime shipping services available in the Northern Territory can be obtained from the Darwin Port Corporation. Visit www.darwinport.nt.gov.au

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mIGRatIOn OptIOns fOR busIness peOple and InvestORsInterstate proponents considering relocating or expanding to the Northern Territory need to consider the following:

• There are no restrictions on their ability to operate in the Northern Territory provided they obtain the right licences and qualifications necessary to operate in the NT.

• There are often variations between different states and territories in the requirements to operate in different industries. For example, being a qualified medical practitioner or builder in Victoria does not necessarily mean you are automatically qualified to do the same work in the NT.

• The Northern Territory Government does not offer financial assistance to help interstate businesses relocate or expand to the NT.

• Additional information on the business licences and qualifications required to operate specific types of businesses in the Northern Territory can be obtained from the NT Department of Business. Visit www.dob.nt.gov.au/gambling-licensing/business/business-licensing

Overseas investors intending to be temporary or permanent residents of the Northern Territory in order to establish, facilitate or manage their proposed investment must meet relevant migration requirements:

• Immigration laws, policy and requirements are defined and applied by the Australian Government across all states and territories.

• Specific arrangements and visa categories have been established for business people, investors and self-funded retirees.

• The Northern Territory Department of Business is authorised to nominate or support eligible business people and investors for the relevant visas. However, nomination or support from the NT Government does not guarantee a positive visa outcome, because the final decision is made by the Australian Department of Immigration and Citizenship.

Additional information on the migration requirements of offshore investors proposing to migrate to the Northern Territory can be obtained from the Business and Skilled Migration area within the NT Department of Business. Visit www.migration.nt.gov.au/visa/business.html

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natIve tItle In the nORtheRn teRRItORyNative title is the recognition by Australian law that some Indigenous people have rights and interests to their land that come from their traditional laws and customs. These rights and interests may include:

• Living in the area;

• Accessing the area for traditional purposes, like camping or ceremonies;

• Visiting or protecting important places and sites;

• Hunting, fishing and gathering of traditional resources like water, wood or ochre; and

• Teaching laws and customs in the country.

In some cases, native title includes the right to possess and occupy an area of land to the exclusion of all others.

Recognition of native title will allow native title holders to continue to exercise their traditional rights where they have not been extinguished. Native title will have been extinguished on privately owned land, residential, commercial and certain other leases and areas where roads, schools, bores, railways and bridges and other ‘public works’ were constructed on or before 23 December 1996.

Native title entitles native title owners to continue using land in the same way it had been used prior to European settlement, where that right has not been extinguished by government previously granting a title to the land to a third party prior to the Racial Discrimination Act 1975.

The Native Title Act applies to the whole of Australia. There are specific elements of this Act relevant to exploration and mining:

• Under the Native Title Act, there is no absolute right for traditional owners to refuse an exploration or mineral title application. However, native title claimants and holders have procedural rights that include the ‘right to negotiate’. Generally, the land councils represent the native title claimants and holders in the negotiation process for exploration and mining projects. Separate agreements are required for both exploration and mining activities.

• Exploration is generally less likely to interfere with Indigenous community or social activities, significant sites, or involve major disturbance to land or waters. In the Northern Territory, applications for an exploration licence are undertaken through the ‘expedited right to negotiate’ procedure, which provides a faster route for the grant of exploration titles.

• The expedited procedure is activated when the notification process includes a statement that the government “considers the act of granting the exploration licence is an act attracting the expedited procedure”. Registered native title claimants may object to the inclusion of this statement within the 4 month notification period. If

© Tourism NT

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the objection is not withdrawn after a period of negotiation the matter is required to proceed to arbitration. If no objection is lodged, a title can be granted immediately without agreement. However, the expedited procedure does not apply to petroleum applications.

• In the Northern Territory, the National Native Title Tribunal (NNTT) is the arbitration body that handles the expedited procedure objection inquiry. Agreement may be reached at any stage during the expedited procedure following negotiation of potential additional conditions. The Native Title Act requires negotiation to be carried out in good faith. The NT Government plays an active part in managing the right to negotiate procedure. If the negotiating parties are unable to reach agreement, the matter may be referred to the NNTT for mediation or arbitration.

• Applications for all forms of mining and petroleum tenure on which development may occur, are also required to comply with the right to negotiate procedure of the Act. Agreements covering petroleum exploration and production activities are negotiated at the same time. This negotiation of the proposed conditions usually requires the execution of two agreements, an ‘ancillary agreement’ containing the commercial arrangements, and a ‘tripartite deed’. The NT Government is not a signatory to the ancillary agreement.

• This procedure is commenced by a public notification process in which details of the mining or petroleum tenement applications are placed in a Northern Territory and an Indigenous newspaper. If there is no registered native title claim, the title can be granted immediately without agreement.

Additional information on the impact of the Native Title Act on proposed exploration or production activities for either minerals or energy projects can be obtained from the NT Department of Mines and Energy under ‘Mineral Titles’. Visit www.minerals.nt.gov.au

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pastORal leases and peRmItted land usesThe pastoral or grazing industry is the dominant land-based industry in the Northern Territory, occupying approximately 55% of the NT land area extending from the high rainfall, monsoonal areas of the Top End in the north to the arid regions of the Alice Springs District in the south.

The pastoral industry is dominated by cattle production, with the buffalo industry contributing a much smaller component to the industry.

There are 223 pastoral leases in the Northern Territory. Cattle are also run on numerous other properties on land held under Crown Leases, Freehold and Aboriginal Freehold land across the Northern Territory. The size of pastoral leases varies from the smallest of 198 square kilometres (Katherine Downs), to the largest of 12,212 square kilometres (Brunette Downs).

The Northern Territory is divided into eleven gazetted pastoral districts including Southern Alice Springs, Northern Alice Springs, Plenty, Tennant Creek, Barkly, Sturt Plateau, Katherine, Victoria River, Gulf, Roper and Darwin. The pastoral districts are defined based on natural vegetation characteristics, rainfall level and reliability, and geographic location.

Pastoral leases on Crown land in the Northern Territory are governed by an Act of the NT Parliament known as the Pastoral Land Act. The purpose of the Act is to provide a form of tenure of Crown land that facilitates the sustainable use of land for pastoral purposes and the economic viability of the pastoral industry.

• Under the Act, it is the duty of a pastoral lessee:

a) to carry out the pastoral enterprise under the lease so as to prevent degradation of the land;

b) to participate to a reasonable extent in the monitoring of the environmental and sustained productive health of the land; and

c) within the limits of the lessee’s financial resources and available technical knowledge, to improve the condition of the land.

• Sections 38 and 39 of the Act clearly define the conditions and reservations applied to pastoral leases around operating requirements and land management.

• The Act is administered by the NT Department of Land Resource Management and includes powers held by the Pastoral Land Board, a statutory authority established under the Act.

• The Act primarily restricts the activities permitted under a pastoral lease to activities primarily required to operate a grazing enterprise, including responsibilities for conserving and taking care of land, vegetation and water resources, maintaining infrastructure, providing access to outside parties as specified in individual leases and generally maintaining the property in good condition.

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• Lease terms can range from a maximum of 25 years for a term lease that includes specific terms and conditions relating to the development of the lease, or perpetual title.

• Proposed amendments to the Act in 2013 are focused on introducing a permit system that would allow non-pastoral activities on a specific area for a period of up to 30 years for a Perpetual Pastoral Lease and until the expiry date of a term lease. The permit would be recorded on the lease and would transfer with the lease. If the amendments to the Act are passed by the NT Parliament, this will introduce the possibility of significant investment in activities such as tourism or other activities on these pastoral leases. The major use of the land must remain pastoral purpose as defined by the Act and total destocking will not be approved.

Additional information on the permitted land uses under particular pastoral leases can be obtained from the Pastoral Land Board. Visit www.lrm.nt.gov.au/rangeland/nt-pastoral-land-board

A detailed map displaying individual pastoral properties throughout the Northern Territory is available from Land Information Centres within the Northern Territory Department of Lands and Planning. Visit www.nt.gov.au/dlpe email: [email protected] or Phone: +61 8 8999 5091

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pOpulatIOn and pOpulatIOn pROjeCtIOnsThe resident population of the Northern Territory as at December 2012 was estimated by the Australian Bureau of Statistics to be 235,182. However the population is highly urbanised despite the vast area of the Territory, with 72% of the population residing in five major population centres (Darwin and suburbs, Alice Springs, Palmerston, Katherine and Nhulunbuy).

The break-up of the estimated resident population across the NT was as follows:

Estimates as at December 2012

Area Resident Population3

Labour Force3

Unemployment Rate7

Darwin City & inner suburbs 25,109 52,217 1.9%

All of Greater Darwin 131,938 80,581 2.1%

Daly, Tiwi & West Arnhem Division 18,334 6,422 11.8%

East Arnhem 16,200 7,461 6.1%

Katherine 20,780 9,477 7.3%

Barkly 6,659 2,673 7.9%

Alice Springs 41,271 23,075 6.0%

Total 235,182 125,607 4.0%

The Northern Territory Department of Treasury and Finance generates population projections to inform future investment decisions by both Government and the private sector:

• These projections take into account natural increase, net migration from interstate and net migration from overseas.

• The NT population is projected to grow at an average annual growth rate of 1.3% per annum through to 2041, with some variation around this average on a year to year basis.

• The non-Indigenous population is set to grow slightly faster than the Indigenous population.

More information on the population estimates for the Northern Territory can be obtained from the Australian Bureau of Statistics. Visit www.abs.gov.au/ausstats

More information on the population projections can be obtained from the NT Department of Treasury and Finance www.treasury.nt.gov.au/Economy/populationprojections

© Tourism NT

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publIC-pRIvate paRtneRshIpsPublic-private partnerships are an arrangement utilising a financial partnership between government and the private sector to deliver particular projects that benefit the wider community:

• Projects selected for public-private partnerships commonly require a large amount of capital and are expected to have a long operating life.

• Each public-private partnership reflects different responsibilities and expectations of the participants. In some cases participants may contribute funds to the partnership, and in other cases they may contribute funds plus construction or management expertise. Past public-private partnerships in the Northern Territory have included the private sector contributing both funds and expertise.

The funding arrangements utilised in public-private partnerships generally fall into two categories:

• Arrangements similar to a finance lease where the government effectively borrows funds from the private sector provider in order to obtain an asset. The government makes a series of periodic repayments and eventually owns the underlying asset. This arrangement is often used to fund projects involving social infrastructure where there is a public benefit, but limited revenue generated from the project.

• Arrangements equivalent to an operating lease where the government makes payments to use an asset, while the private sector partner retains ownership of the asset together with the risks and benefits incidental to that ownership. These arrangements are common for projects that have the potential to generate revenue.

Public-private partnerships may continue to be used for large and significant projects in the Northern Territory:

• Large projects may require significant amounts of capital that the NT Government may not be able to entirely fund because of competing priorities, and the NT’s relatively small population and tax base.

• Specific projects may also require particular development and management expertise in addition to capital, and a public-private partnership might be the best way to obtain all the services and risk-sharing arrangements required for a successful operation.

• Each opportunity will be unique and will be assessed on a case-by-case basis. The potential partnership arrangements and expectations will be tailored to each opportunity.

Three projects in the Northern Territory have been funded using a public-private partnership (PPP) model.

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The Darwin to Adelaide railway – officially known as the AustralAsia Railway:

In 1997 the Northern Territory Government established the AustralAsia Railway Corporation, and engaged the South Australian and Australian governments to complete the development of a rail line connecting Darwin and Adelaide.

The three governments collectively contributed initial capital of $480 million to the AustralAsia Rail Corporation: $165 million was contributed by the Australian Government, $165 million by the Northern Territory Government and $150 million from the South Australian Government.

In 2000, the AustralAsia Railway Corporation awarded the contract to build the railway to the Asia Pacific Transport Consortium under a build-own-operate and transfer arrangement, with lease arrangements covering 50 years’ operations before the railway is handed back to the Northern Territory and South Australian governments in 2054.

The three governments subsequently contributed another $79 million in total to allow the project to be completed.

The original operator of the railway achieved the operating targets they had set, but went into receivership due to other financial issues without any financial impact on either the Northern Territory or South Australian governments. Rail services continued to operate. The concession is today held by Genesee & Wyoming Australia, a wholly-owned subsidiary of Genesee & Wyoming Inc., an international specialist rail operator.

The Darwin Waterfront development:

The Darwin Waterfront Corporation was established by the Northern Territory Government in late 2006 to oversee the transformation of a 25 hectare industrial waterfront location into a vibrant business, tourism and recreation hub that makes the most of Darwin’s harbour side location. Initial estimates of the total cost to develop the area ranged as high as $1.1 billion.

A new convention centre was selected as the centrepiece of the new development.

The Government selected the Darwin Cove Consortium led by ABN Amro as its private partner, capitalising on the availability of world-class expertise and strong local knowledge and experience.

The convention centre and the community infrastructure developments were contracted as a PPP between the NT Government and the Darwin Cove Convention Centre Pty Ltd. The convention centre is being delivered under a build-own-operate-transfer model where the consortium will manage the facility for 25 years, after which the facility reverts to ownership of the NT Government. The construction cost of the convention centre was approximately $110 million.

The residential and hospitality elements of the development will be delivered in an arrangement whereby the selected developer, the Toga Group, will develop the land and the NT Government will receive returns on the sale of the built property.

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In late 2013 the convention centre, tourism and recreational elements of the development are in place, the first stage of the residential development has been completed (at an estimated of $110 million), construction of the second residential stage has commenced (at an estimated of $90 million), and the third stage is being marketed.

The Darwin Correctional Facility

A public-private partnership was selected by the Northern Territory Government as the preferred means of delivering new correctional facilities based in Darwin.

In September 2011 the Sentinel Consortium was announced as the partner to design, construct, finance, maintain and provide facility management services for a new correctional precinct in the outskirts of Darwin for a period of 30 years. The construction cost was estimated to be $495 million.

The Sentinel Consortium includes Northern Territory businesses Sitzler, Honeywell and SKM, with partners including the Commonwealth Bank of Australia, Bilfinger Berger Project Investments and Baulderstone. Sitzler and Baulderstone, in a joint venture arrangement, is the construction contractor.

Construction is expected to be completed in 2014, and the consortium will then maintain the facility for a period of 30 years.

Once the facility is commissioned, the NT Government will make quarterly payments to the consortium for the life of the arrangement

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RaIl tRanspORt seRvICes and avaIlabIlItyRail is the primary long-haul freight service along Australia’s central freight corridor connecting the Northern Territory with freight services in South Australia and other states.

The primary rail line in the Northern Territory is a single, standard gauge line joining Adelaide and Darwin known as the AustralAsia Railway:

• The final elements of the railway were completed in late 2003, allowing the first freight service to arrive into Darwin Port in January 2004, with the first passenger service, The Ghan, arriving a month later.

• The track is located on land owned by the AustralAsia Railway Corporation, a statutory body set up to represent the interests of the South Australian and Northern Territory governments during the construction and operation of the railway.

• Rail services are delivered by a private operator granted a concession to build, own and operate the railway under a concession agreement until the railway is handed back to the Northern Territory and South Australian governments in 2054.

In November 2010 the operating concession and assets were purchased by Genesee & Wyoming Inc. (GWI), and a wholly-owned subsidiary called Genesee & Wyoming Australia became the operator of the concession on the Adelaide to Darwin railway. Since taking over the concession there has been new investment in new rolling stock, such as higher horsepower and energy-efficient locomotives to improve the efficiency and reliability of freight services. Today, on the AustralAsia Railway:

• an open access regime applies, whereby freight operators have the opportunity to access the railway infrastructure, for a fee, via the rail owner/operator.

• there are six intermodal freight services a week for transporting approximately 800,000 tonnes of intermodal freight and 70,000 tonnes of bulk liquids from Adelaide to Darwin each year. These trains can operate to up to 1,800 metres in length.

• 24 bulk trains a week operate between mines sites and ports in Darwin and South Australia.

• the railway currently carries iron ore from the Frances Creek mine and manganese from Bootu Creek to Darwin, and copper concentrate from the Prominent Hill mine in South Australia to the Port of Adelaide.

Additional information on the operating capacity, facts and figures can be obtained from the AustralAsia Railway Corporation. Visit www.aarail.com.au/railway/operating-facts-and-figures

Additional information on existing and potential future freight rail services on the AustralAsia Railway can be obtained from Genesee & Wyoming Australia. Visit www.gwrr.com/operations/railroads/australia/genesee_wyoming_australia

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The passenger service on the AustralAsia Railway, known as The Ghan, is operated by Great Southern Railways, part of the Serco group. Today there are two passenger services per week operating between Adelaide, Alice Springs and Darwin. Additional information on existing and potential future passenger rail services on the AustralAsia Railway can be obtained from Great Southern Railways. Visit www.gsr.com.au

As further mineral, energy and agricultural developments occur there may be opportunities for construction of transport infrastructure, including rail links to the central corridor, providing export options through ports in South Australia or the Northern Territory. Potential possibilities in the NT include rail links between:

• Tennant Creek and Mount Isa in western Queensland, to connect to the East Coast Rail network.

• Kununurra in north Western Australia and Katherine, to connect to the export corridor to Darwin.

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ROad tRanspORt seRvICes and avaIlabIlItyThe transport industry and its functions are embedded in and essential to Northern Territory businesses, the community and the economy.

Significant investment has been made in the development of the Northern Territory’s transport systems, including the expansion of the Port of Darwin, completion of the Alice Springs to Darwin railway line, enhanced public transport services and extensive road infrastructure upgrades.

The national highway network is the backbone of the road network system across the Northern Territory and provides all-year access to Australia’s capital cities. The NT has an open access regime for road trains and a proven innovative high productivity vehicle scheme with no first and last mile access issues, as are prevalent in other capital cities and urban areas around Australia.

Importantly, this open access regime continues directly to the Port of Darwin, which is the closest deep water port in Australia to Asia. This regime delivers maximum efficiency, with minimum regulatory burden on industry, without compromising safety.

The Northern Territory is served by three national bitumen sealed highways:

• The Stuart Highway links to South Australia

• The Barkly Highway links to Queensland

• The Victoria Highway links the NT into the Kimberley region of Western Australia

In total, the Northern Territory road network is made up of more than 36,000 kilometres of national highways, arterial, secondary and local roads:

• Many of these roads are subject to flooding during the wet season, which can cause some communities across the NT to be isolated for weeks at a time.

• Some roads also have traffic restrictions imposed such as wet season closures, weight limits or access restricted to high clearance four wheel drive vehicles only. These restrictions can apply close to urban areas, as well as to more remote areas. The restrictions are in place to minimise the potential for damage to the roads, and to protect travellers who may find themselves stranded without easy access to assistance.

• 70% of the road network in the Northern Territory is unsealed, and road freight/transport operators advise that their operating/maintenance costs are up to 30% higher for vehicles operating on unsealed roads.

Investors considering projects that are dependent upon reliable road access are encouraged to contact the NT Department of Transport for advice, especially if there may be a significant change in traffic volumes, and particularly if new roads and infrastructure such as bridges, drainage and intersections may be required. Visit www.transport.nt.gov.au

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Additional information on the road network can be obtained from the NT Department of Transport. Visit www.transport.nt.gov.au/ntroads

Additional information on road restrictions can be obtained from the NT Road report website. Visit www.ntlis.nt.gov.au/roadreport

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suppORt tO pOtentIal InvestORs avaIlable fROm the nORtheRn teRRItORy GOveRnmentThe Northern Territory Government is committed to growing the economy to create opportunities for NT residents. Maintaining a climate that is attractive to local, interstate and overseas investors is an important element of the economic growth strategy.

The NT Government provides access to high-quality information on the level of industry activity, analysis of industry performance, sharing of economic data and local knowledge shared by industry specialists. This support helps potential investors to make well informed judgements about the risks and benefits for particular opportunities, and commonly reduces the time required to make key decisions.

Prospective investors are advised to engage the department responsible for the industry sector they are considering investing in, and the department will be able to provide guidance, assistance and support as required. It may be necessary to engage different departments to understand various requirements or aspects of the proposed investment, but the primary agency will be able to provide advice as required.

The Northern Territory Government also supports a number of industry associations to ensure that businesses can receive independent professional advice on a range of matters when required.

Once a business is established in the NT it may qualify for a range of business assistance programs offered by the NT Department of Business. These programs are designed to help local businesses better position themselves to capture opportunities to grow by better planning, understanding the market better, or even to reach new markets. More information on the support programs available can be obtained from the Department of Business website under ‘Grants and Assistance’. Visit www.dob.nt.gov.au/business

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teleCOmmunICatIOns seRvICes and avaIlabIlItyThe full suite of telecommunication services is available in the Northern Territory, although some services such as high-speed broadband connections and mobile phone coverage are only available in the major town centres, or along the corridors connecting them.

The low population density of the NT, with the long distances between towns, makes it commercially challenging to deliver the same high standard of telecommunications services to every residential community and township.

Mobile phone coverage is excellent within and to a reasonable distance outside the major settlements, but does not extend to the more remote areas.

However the NT population is highly urbanised with 75% of the population living within five major centres. Under existing plans, 97% of the population will have access to the National Broadband Network (NBN), and 93% will do so through the optic fibre network. The advantages of high-speed internet connection will be immense for all business sectors, and will largely overcome many of the distance limitations that have affected business growth in the past.

Darwin is connected to Australia and the rest of the world by a world-class telecommunications system. The current optic fibre backbone and inbuilt redundancy ensures that the NT’s telecommunications needs have been future proofed for the next generation.

By 2015, the rollout of the NBN will provide universal satellite broadband coverage at speeds of up to 12 Mbs. This will augment the proposed fixed wireless and fibre to the premises systems being implemented as part of the NBN.

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tIme zOnes In the nORtheRn teRRItORy and austRalIaThe Northern Territory’s geographical location provides a unique time zone advantage. Its cultural similarity with Asia and its American/European business environment make it a perfect base to bridge Asian and western locations.

The Northern Territory is in the central time zone, 9.5 hours ahead of Coordinated Universal Time, and is within a two hour time zone of major Asian cities such as Beijing, Shanghai, Kuala Lumpur, Seoul, Singapore, Hong Kong, Macau, Manila and Tokyo. This allows business communication to be undertaken on a same day basis.

The Northern Territory time zone varies from 30 to 90 minutes with other Australian capital cities.

Australia’s Time Zone Advantage

Asia-Pacific Markets North America MarketsEuropean Markets

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WateR avaIlabIlIty and manaGement fOR ResIdentIal CentResFresh water is available in the Northern Territory from reticulated networks, surface water storages and underground sources accessed by bores.

The Power and Water Corporation is the monopoly provider of fresh water in the major town centres, servicing both residential and business customers with water drawn from storages and underground aquifers in some instances. The water supply is high quality, reliable, requires limited treatment and is safe for drinking. The quality of water is closely monitored to ensure it meets the high standards required for human consumption.

Any proposals or plans to develop significant new residential or commercial developments must include details of how the proposed developments intend to connect to the existing water networks, and the quality of infrastructure proposed. As the owner and operator of the existing infrastructure, the Power and Water Corporation has a vested interest in ensuring the proposed infrastructure meets the required standards.

Investors proposing to operate a business within the major town centres should contact the Power Water Corporation to confirm they can be supplied with the quantity of water required, and the cost. Visit www.powerwater.com.au

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WateR avaIlabIlIty and manaGement fOR IndustRy, aGRIbusIness, and COnseRvatIOnInvestors proposing to operate a business within the major town centres should contact the Power Water Corporation to confirm they can be supplied with the quantity of water required, and the cost. Visit www.powerwater.com.au

More remote communities and commercial sites such as pastoral stations and mines are almost entirely dependent on underground or bore water that may supply a small, independent reticulation network. The Power and Water Corporation manages water services for 72 remote and Indigenous communities, but commercial sites such as pastoral stations, roadhouses and mines generally manage their own water supplies.

Native and improved pastures, grain and fodder crops grown in the Northern Territory rely on rainfall and accumulated soil moisture for water supplies during their growing season. There may be some capacity to extract water from rivers for local irrigation but this will be determined on a case by case basis after considering the impact on the entire catchment and other stakeholders. The NT Department of Land Resource Management should be approached on any proposal to extract waters from NT rivers or natural storages such as lagoons or swamps.

There is a limited amount of irrigated agriculture in the Northern Territory at the moment, and the majority of water supplied for existing irrigation activities is sourced from underground aquifers. However the proportion of ground water allocated to irrigation use is low, and these underground supplies are generally replenished from the wet season run-off. There may be opportunities to expand irrigated agriculture in specific areas of the NT, without compromising the conservation values held by the NT community.

Most Northern Territory rivers and catchments are still in pristine condition and there is a significant focus on managing the Territory’s water resources to a high environmental standard. The opportunity to divert the excess water arising from the wet season run-off into additional storage systems has been investigated, but this opportunity is largely restricted by a lack of suitable dam sites and high evaporation rates. More analysis of the potential to harness water resources for the further development of the NT can be found in Sustainable Development of Northern Australia, a report by the Northern Australia Land and Water Taskforce published in December 2009.

The Department of Land Resource Management is responsible for managing the Northern Territory’s water resources and oversees the development and implementation of Water Allocation Plans across the NT. The department is guided by the NT Water Act, which provides for the investigation, allocation, use, control, protection, management and administration of water resources, and related purposes.

It is highly recommended that investors proposing to conduct a business activity away from the residential centres serviced by the Power and Water Corporation, should contact the Water Division of the Department of Land Resource Management to confirm the availability of the required water supplies, potential supply arrangements and cost. Visit www.lrm.nt.gov.au/water

58 Northern Territory Investment Guide | October 2013

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1 Deloitte Access Economics Business Outlook June Quarter 2013

2 Northern Territory 10 Year Transport Strategy

3 Australian Bureau of Statistics Catalogue 3218.0, Regional Population Growth, Australia 2012 published 30-Aug-13

4 An Assessment of the Impact of Climate Change on the Nature and Frequency of Exceptional Climatic Events. Bureau of Meteorology. (2008).

5 NT Submission to the House of Representatives Standing Committee on Primary Industries and Resources Inquiry into The Role of Government in Assisting Australian Farmers to Adapt to the Impacts of Climate Change, April 2009.

6 Spatially explicit benefit—cost analysis of fire management for greenhouse gas abatement Austral Ecol. 37 724–32. Heckbert S, Russell-Smith J, Reeson A, Davies J, James G and Meyer C 2012

7 Estimate reflecting 2011 Census data, collected and published by the Australian Bureau of Statistics

8 Department of Education, Employment and Workforce Relations (DEEWR), Small Area Labour Market Analysis, Statistics local areas level 3 (SA3)

RefeRenCes

59October 2013 | Northern Territory Investment Guide

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Contact:Director Investment ServicesOffice of Asian Engagement, Trade and InvestmentNorthern Territory Government

Phone: +61 8 8999 5091 | Email: [email protected]

ISSN 2202-865X

© Northern Territory Government, October 2013

Disclaimer:This publication has been compiled by the Northern Territory of Australia as a guide ONLY to the investment opportunities in the Northern Territory and is not intended to qualify for, be utilised or interpreted as a prospectus for any contributing party or to give any impression that the Northern Territory of Australia endorses any particular project. Further information should be obtained directly from any contributing entity (including by way of due diligence enquiries) where you are considering opportunities outlined in this publication.

Reliance should not be placed upon any information contained in this publication for the purpose of making any legal, corporate or investment decisions. The Northern Territory of Australia recommends that any person proposing to invest in any exploration activity or entity conducting exploration in the Northern Territory of Australia to obtain relevant independent financial and legal advice which specifically takes into account matters relating to your particular situation. The Northern Territory of Australia disclaims any liability or responsibility or duty of care towards any person for any loss or damage whatsoever caused by the use of, or reliance on the information contained in this publication.

The Northern Territory of Australia compiled this publication using materials and information provided by private sector entities. Changes in circumstances of the private sector entities contributing to this publication after the time of its publication may impact on the accuracy of information contained in it. The Northern Territory of Australia gives no warranty, guarantee or assurance, and makes no representation as to the accuracy of any information or advice contained in this publication provided by any private sector entities, or that such information or advice is suitable for use in relation to legal, corporate or investment decisions. This guide should not be relied on by any person or entity for any person and if a person or entity relies on this Guide it does so at its own risk.

Visit www.investnt.com.au to view the most current: • NorthernTerritoryInvestmentGuide• NorthernTerritoryDirectoryof InvestmentOpportunities• NorthernTerritoryMineralInvestmentOpportunities.

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