A Northern Territory space base from which three NASA rockets were launched in 2022 has ceased operations effective immediately, its management has announced.
The company running the spaceport, Equatorial Launch Australia (ELA), said it was now in conversations with the Queensland government to relocate its operations to Cape York.
ELA, which was planning a major expansion of the Arnhem Space Centre at its East Arnhem Land location, has blamed delays by the Northern Land Council (NLC) for the exodus — which the NLC described as a "falsehood".
"The decision came after the NLC failed to meet its own specified deadline for the approval of the head lease for the fourth time over the last 12 months in October, 2024," ELA said in a statement.
"Despite desperate appeals from ELA, the NT Chief Minister's Department and the Gumatj Corporation since February 2024, the NLC would not issue a head lease or provide any official reasons for the delays."
NASA's second sounding rocket Sistine III launched from the Arnhem Space Centre in July 2022. (ABC News: Michael Franchi)
The company claimed an NLC "delay to late 2025 to allow consultation with traditional owner groups had the potential to put ELA in breach of its contractual obligations with launch clients and jeopardised a previously secured major funding round".
"Accordingly, management and the board of ELA were left with no option other than to … abandon negotiations to seek an alternate equatorial site in Queensland," ELA said.
The company had previously flagged it would begin orbital launches with a South Korean company next year.
Equatorial Launch Australia had previously proposed a massive expansion of its space centre near Nhulunbuy. (ABC News: Michael Franchi )
A spokesperson for the NT government said it was "disappointed by ELA's decision".
They said the government was "exploring legal options regarding our 5 per cent shareholding in ELA", which they said was worth about $5 million.
The NLC hit back at the space company's claims, saying ELA had "provided inaccurate timelines and unfairly blamed the NLC for delays as the reason for their decision".
"The NLC has engaged proactively and positively to facilitate a substantial, swift and most crucially, safe agreement being made between ASC and traditional owners," it said.
"The NLC, under its statutory obligations, is required to facilitate Section 19 Land Use Agreements between Aboriginal people and entities wishing to conduct business on their land, across the Top End of the NT."
NLC chairman Matthew Ryan released a statement saying he was "disappointed with how ELA has handled this and especially the false timeline they are sharing".
Matthew Ryan says the land council is disappointed with how ELA has handled the negotiations. (ABC News: James Elton)
"Our people will not be pushed into cutting corners for outside business timelines, nor can we jeopardise cultural obligations, our country, or the hard-won land rights of our people," he said.
"The NLC has worked hard to keep this moving and communicate with them many times through what is a complicated but really important process."
ELA chief executive Michael Jones has previously voiced his frustrations with doing business on Aboriginal land in the remote NT.
The Gumatj Corporation, with which the original lease deal was facilitated, has previously raised its hope for the space base to support economic growth and activity for the East Arnhem region.
Gumatj Corporation chief executive Klaus Helms said the departure of ELA would leave a void in the East Arnhem region, ahead of the town's mining industry winding down in 2030.
"It will not help Nhulunbuy as a township," Mr Helms said.
"Because if we don't get another large project going, with the Rio Tinto mine closing, I think this could be a real problem for the township numbers, in terms of the population base."
Mr Helms also said the Gumatj Corporation would now work with ELA to ensure the land was properly rehabilitated by the company as it shifted its operations.
A spokesperson for Queensland's Department of State Development, Infrastructure and Planning said officials had had "preliminary discussions" with ELA.
"The department is always happy to examine investment proposals by interstate and international proponents," they said in a statement.
"Equatorial Launch Australia has expressed interest to relocate its facilities to a new equatorial site near Weipa in Cape York.
"Officers within the department have had preliminary discussions with ELA to discuss their interest and have provided advice on options progressing their proposal."