High Court Quashes Massive Northern Territory Water Licence

The High Court of Australia quashed a 30-year groundwater licence granted to Fortune Agribusiness for its Singleton Station project north of Alice Springs. The licence would have permitted the extraction of 40 gigalitres of water annually to support an intensive irrigated horticulture business. The court ruled that the relevant Northern Territory minister failed to justify the extended 30-year term and denied the Mpwerempwer Aboriginal Corporation procedural fairness by failing to provide notice or an opportunity for written submissions regarding the licence conditions.

The Mpwerempwer Aboriginal Corporation challenged the allocation on the grounds that it threatened community water supplies, a fragile desert aquifer, and sacred sites. The court found that the government contravened the limitations on the decision-making authority of the delegate minister. This ruling nullifies what the Central Land Council described as the largest groundwater licence ever granted in the Northern Territory.

The court referred the application back to Northern Territory decision-makers. Fortune Agribusiness must now await an environmental impact assessment from the Northern Territory Environment Protection Authority before the government can reconsider the licence. The company stated it would consider the reasons for the judgment, while native title holders emphasized the cultural and spiritual significance of the water.