The future of Darwin Port's controversial 99-year lease with Chinese-owned firm Landbridge is under renewed scrutiny, after an audit revealed significant financial concerns about the company. Landbridge pledges it won't default on the terms of the lease, but the issue is raising serious concerns within the Northern Territory government.
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00:00Storm clouds hover over the Darwin Port's finances with the NT government trying to
00:07find out what's going on.
00:09Our focus is to ensure that operations of the port continue despite what's happening
00:14right now.
00:15Chinese owned Landbridge Group leased the Darwin Port for 99 years from the NT government
00:21in 2015.
00:22Now an independent audit has questioned Landbridge's ability to meet the terms of that lease.
00:28With the company facing tens of millions in net debt, the audit found there is a material
00:33uncertainty that may cast significant doubt on the Landbridge Group's ability to continue
00:39as a going concern.
00:40As soon as we saw the findings we engaged the Northern Territory Government to highlight
00:44to them that this was the findings that had come down and to reassure the Northern Territory
00:49Government that we were confident that Darwin Port operations would not be affected.
00:54The lease of the strategic northern asset to a potential geopolitical adversary was
00:59controversial from the get-go, even attracting the attention of then US President Barack
01:04Obama.
01:06The Port of Darwin is strategically important to the defence force posture of Australia.
01:11Some believe Landbridge's financial woes could be a reason for the government to take it
01:15off them.
01:16This is an opportunity for government to reassess, re-establish and perhaps get the lease back
01:21into Australian controlled hands.
01:24NT Treasurer Bill Yan met with the Federal Infrastructure Minister today in Canberra
01:29to discuss the issue, but is waiting for more information from Landbridge before deciding
01:34if the lease could be terminated.
01:37Landbridge is pledging it'll meet its financial obligations and the port will stay under its
01:41control.
01:42There's nothing that would change our current position that it's a 99 year lease and we've
01:46got 89 years to go.
01:47The Albanese Government has criticised the port's lease and reviewed it last year, but
01:52couldn't produce any evidence to prove the current operators posed an unmanageable risk.