Katherine Investment Profile

The Katherine Investment Profile has been developed to encourage potential investors to seriously consider investment opportunities in the Katherine region.

A Region with Potential

The Katherine region of the Northern Territory offers the best of all worlds: a range of business and investment opportunities, very stable economy, a great lifestyle and tourism icons in the back yard.

A number of industries, including mining, defence, tourism, pastoral, horticulture and transport contribute significantly to the economy. Consequently the economy is extremely stable and has consistent growth.

Underpinning economic growth are the flow-on effects of providing regional support services to major projects such as mining developments, defence construction, forestry and horticultural trials, and a transport and logistics hub servicing the AustralAsia Railway.

As Northern Australia, in particular the Top End of the Northern Territory prosper there has never been a better time to invest in the Katherine region.

Investment Opportunities

Primary Industries

• Pastoral production including sub-dividing larger properties
• Plantation forestry - mahogany, other hardwood species
• Horticulture - various fruit and vegetable crops
• Fruit processing - mangoes, citrus, other fruits
• Crops for biofuels, pastoral and seed production
• Hay for pastoral production, feedlotting and live export

Defence Support

• General support services including freight, transport and IT
• Equipment and systems support and maintenance
• General supply of goods and services to Tindal, Delamere and Bradshaw
• Specific garrison support - security, catering, accommodation, facilities and ground maintenance to Tindal, Delamere & Bradshaw
• Environmental monitoring and remediation at Bradshaw to minimise impact of armoured vehicles
• Armoured and field vehicle maintenance

Tourism

• River tours and activities including house and river boats
• Indigenous tours including arts and culture performances
• Tours including eco tours and birdwatching
• Five star resort and themed accommodation
• Nature based tourism attractions
• Airline service between Darwin and Katherine

Mining

• Labour hire services
• Mining exploration and geological surveying services
• Security, safety and training services
• Heavy haulage services
• Mine site rehabilitation services
• Accommodation support services

Construction

• Engineering and surveying services
• Building certification services
• Planning and project management services
• Building trades - building, electrical, carpentry, plumbing
• Architectural and drafting services
• Residential rental properties

General

• Child care centre and children's services centre
• Industrial park adjacent to the railway precinct
• Rail and road transport hub at the railway precinct
• Service station complex for the trucking industry
• Indigenous skills training to support return to work
• Cross-cultural training services

Industry Profile

Primary Industries

The strength of Primary Industries is based on reliable water sources, productive land and rail and road networks to southern and international markets.

• Pastoral production was worth an estimated $91 million in 2005-06, with about 594,000 cattle.
• Horticulture production was an estimated $33.8 million in 2005-06.
• Mangoes are the main fruit crop followed by citrus.
• Most cucurbits, tomatoes, potatoes and egg plants grow successfully in the region as do beans, carrots, onion, sweet corn, sweet potato and lettuce.
• Hay, silage and crop production was worth $6.4 million in 2005-06 with 30,563 tonnes produced

Defence

Defence activities make a significant contribution to the region's economy:

• Tindal Airforce Base has about 625 personnel from 75 Squadron and 322 Combat Support Wing with about $35 million spent annually on defence salaries.
• Approximately 2000 people make up the Defence community.
• An estimated 2000 extra defence personnel visited for defence exercises in 2005-06.
• Delamere Air Weapons Range is a significant training facility for the Royal Australian Air Force and the Republic of Singapore, Malaysian and United States air forces.
• The new Bradshaw Field Training Area is the main training facility for the Army's 1st Brigade with about 7000 troops visiting each dry season.

Tourism

About 270,000 tourists visit the region each year.

• 19% from overseas, 50% from interstate and the rest from within the Territory.
• Visitors stayed an average of 3.9 nights from 2000 to 2005 and expenditure was about $330 per person.
• Annual growth from 2006-07 to 2008-09 is predicted to be 1.6% for interstate guests, 0.7% for nights spent in the Northern Territory and 1.8% in expenditure.

Mining

There has been a strong resurgence of exploration and development in the region. New activity includes:

• Union Reefs, Brocks Creek and Fountain Head gold mines reopened.
• McArthur River zinc and lead mine expanded.
• Frances Creek iron ore mine back in production.
• Seven proposed gold mines: Pine Creek district (4), Katherine (1) and Tanami area (2).
• Proposed reopening of Merlin diamond mine; also at proposal stage Redbank copper mine.

Construction

Construction in the region is broadly categorised into four areas: civil, remote Indigenous housing, commercial and residential.

• Northern Territory Government's annual budget for civil works ranged from $18.8 million in 2004-05 to $18.3 million in 2006-07.
• $9.3 million was spent on new buildings in 2004-05.
• Annual budgets for Indigenous housing and infrastructure programs range from $3.3 million in 2004-05 to $5.5 million in 2006-07.

Economic Development Activity

Significant major projects likely to provide major regional economic and investment opportunities:

• Defence infrastructure for Wedgetail aircraft - a $64 million project at Tindal RAAF Base, planned for 2008-2010, to support the new Wedgetail Airborne Early Waning and Control aircraft that will transit through Tindal.
• Tindal Stage 5 Redevelopment - a $47 million project, due between 2008 and 2010. This project includes renovating existing infrastructure and accommodation at Tindal RAAF Base.
• Mining Development - six new mines; gold, iron ore, copper and diamonds are due to be commissioned in the next 12 months, with another four in the next three years and potential for more mines to open.
• Arts and Cultural Precinct - a significant project incorporating several galleries, a performing arts theatre, cultural display, caf￩, retail space and artist work rooms. This is a staged $10 million development over several years.
• Region of Excellence in Remote and Indigenous Heath Knowledge - a project that draws on the region's expertise in remote and Indigenous health, education and training. Benefits will include better training, education and research, as well as the spin-offs in travel, accommodation and tourism. The health care industry in the region is worth more than $50 million, not including pharmaceuticals, research and education.
• McArthur River Mine Community Benefit Trust - a $32 million package that will provide community infrastructure in the Borroloola region, over the 25 year life of the mine. This investment into community infrastructure will provide economic, employment, health and recreation benefits.
• Borroloola Multi-purpose Precinct - a $5 million project to house local government administration as well as providing offices and meeting room facilities for rent.
• Timber Creek Multi-purpose Complex - a project incorporating a rural transaction centre is being considered. At concept stage, with an estimated $2 to $3 million budget.

Regional Demographics

• Some 9000 people or 51% of the Region's population live in Katherine town.(1)
• The estimated resident population for the region as at 2006 was 17,920 persons.(1) However, the 2006 Census reported 16,465 people usually reside within the region.
• The population is expected to rise to 22,460 people by 2021.(2)
• The median age is 27 years.
• Around 8,000 people or 50.2% of the 16, 465 population are Indigenous.
• 7,756 or 47% of the population is aged between 15 and 44.
• The median weekly household income is $1,040, $13 above the Australian figure of $1,027.

(1) ABS 3218.0 - June 2006.
(2) ABS Regional Statistics 2006: NT 1362. Other data is sourced from the ABS 2006 Census of Population and Housing.

For More Information

Investors are encouraged to read the more comprehensive accompanying document, KATHERINE INVESTMENT PROFILE or contact the Katherine office of the Territory Business Centre on 08 8973 8180