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NT’s Arnhem Space Centre to cease operations, as ELA flags move to Queensland

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Equatorial Launch Australia said operations at the Arnhem Space Centre would cease immediately. (Source: ELA)

In short:

Equatorial Launch Australia (ELA) has said its Arnhem Space Centre will cease operations immediately, resulting in the loss of a significant number of local jobs and the implementation of economic stimulus measures.

The space base will host three suborbital rocket launches from US aerospace giant NASA in 2022.

What’s next?

ELA said it had been in talks with the Queensland government about relocating its operations to Weipa in Cape York.

The Northern Territory Space Base Authority announced that the base, from which three NASA rockets were launched in 2022, would cease operations immediately.

Equatorial Launch Australia (ELA), the company that will operate the spaceport, said it was in talks with the Queensland government about moving its operations to Cape York.

ELA, which had been planning a major expansion of the Arnhem Space Centre in East Arnhem Land, blamed the exodus on delays by the Northern Land Council (NLC) – which the NLC called “lies”.

“The decision was taken following the NLC’s failure to approve the master lease by the October 2024 deadline for the fourth time in the past 12 months,” the ELA said in a statement.

“Despite continued calls from the ELA, the NT Chief Minister’s Office and Gumatj since February 2024, the NLC has yet to issue the Master Lease and has not provided any official reason for the delay.”

Arnhem Space Centre in the Northern Territory will cease operations and the ELA flag will be moved to Queensland

NASA’s second sounding rocket, Sistine III, is set to launch from the Arnhem Space Center in July 2022. (ABC News: Michael French)

The company claimed that “postponing the NLC until late 2025 to allow for consultation with Traditional Owner groups could cause ELA to breach its contractual obligations with launch customers and jeopardize a significant funding round previously secured”.

“As a result, ELA management and the board have been left with no choice but to abandon negotiations to find an alternative Equator site in Queensland,” ELA said.

The company previously said it would begin orbital launches next year with a South Korean company.

Arnhem Space Centre in the Northern Territory will cease operations and the ELA flag will be moved to Queensland

Equatorial Launch Australia has previously proposed a major expansion of its space centre near Nhulunbuy. (ABC News: Michael Franchi)

A Northern Territory government spokesman said it was “disappointed with the ELA’s decision”.

They said the government was “exploring legal options regarding our 5 percent stake in ELA,” which is worth about $5 million.

NLC hits back at ELA’s claims

The NLC refuted the aerospace company’s claims, saying the ELA “provided inaccurate timelines and unfairly attributed the delays to the NLC as the reason for its decision”.

“The NLC has been proactively engaged to facilitate a substantive, expeditious and, most importantly, secure agreement between the ASC and Traditional Owners,” the company said.

“The NLC has a statutory duty to facilitate section 19 land use agreements between Aboriginal people in the Top End of the Northern Territory and entities wishing to conduct business on their lands.”

NLC President Matthew Ryan issued a statement saying he was “disappointed with the way the ELA handled this matter, particularly the false timeline they shared”.

Arnhem Space Centre in the Northern Territory will cease operations and the ELA flag will be moved to Queensland

Matthew Ryan said the Land Council was disappointed with the way the ELA handled the negotiations. (ABC News: James Elton)

“Our people will not be forced to cut corners for the sake of external business timelines, nor can we jeopardize cultural obligations, our country or the hard-earned land rights of our people.

“The National Library has worked hard to facilitate this process and has communicated with them many times throughout this complex but very important process.”

ELA chief executive Michael Jones has previously expressed his displeasure with doing business on Aboriginal land in remote parts of the Northern Territory.

Anrhem Land’s space future

The photo shows Blue and Evelyn Douglas looking towards the horizon on a street in Newlandby.

Arnhem Space Centre in the Northern Territory will cease operations and the ELA flag will be moved to Queensland

The launch of three rockets from the remote Northern Territory has given new hope to a region in need of economic diversity – and that the space industry could help it soar into the future.

Gumatj, which initially brokered the lease agreement, has previously expressed its hope that the space base will support economic growth and activity in the East Arnhem region.

Gumatj CEO Klaus Helms said ELA’s exit would leave a void in East Arnhem Land and the town’s mining industry would gradually decline by 2030.

Mr Helms said: “This is not going to help the development of the town of Newland by any means.

“Because if we don’t get another big project started, with the Rio Tinto mine closing, I think it could be a real problem for the number of townships in terms of population base.”

Mr Helms also said Gumatj will now work with the ELA to ensure the company makes proper remediation of the land when it moves operations.

A spokesman for the Queensland Department of Development, Infrastructure and Planning said officials had held “preliminary discussions” with the ELA.

In a statement they said: “The department is always happy to review investment proposals from both interstate and international proponents.

“Equatorial Launch Australia has expressed interest in relocating its facilities to the new Equatorial Launch Site near Weipa in Cape York.

“Officials within the department have had preliminary discussions with the ELA to discuss their interests and provide advice on options for moving forward with their proposal.”

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