A space startup once touted to be the future of Australia’s rocket launch industry has fallen into bankruptcy and still owes the Northern Territory Government more than $5 million.
A notice issued last week by financial regulator the Australian Securities and Investments Commission (ASIC) confirmed that Equatorial Launch Australia (ELA) will be liquidated and Jeffrey Peter Granger will be appointed liquidator.
ELA attracted national attention in 2022 when it launched three NASA rockets from the Arnhem Space Center launch pad in the Northern Territory. Prime Minister Anthony Albanese speaks of a “new era” for Australia’s space sector.
The rocket will be Australia’s first launch in more than 25 years, prompting the company to submit ambitious plans to: They hope to expand the number of launch pads to 14 and launch a rocket every week.
ELA’s Arnhem Space Center was located on the outskirts of Nhulunbuy in Arnhem Land. (ABC News: Michael Franchi)
However, in 2024, ELA operations have ceased in the Northern Territory.
The company blamed delays and failures on negotiations with the Northern Land Council over a proposed lease to expand its East Arnhem Land rocket launch site – claims NLC refused.
At the time, a spokesperson for the then Northern Territory Labor Government said: Invested approximately $5 million in ELA and was “exploring legal options” In connection with a 5% stake in the company.
On Wednesday, Premier Lia Finocchiaro said the ELA collapse was a “mess” that the current National Liberal Party (CLP) government would have to deal with going forward.
Lea Finocchiaro said she was concerned about the collapse of the ELA. (ABC News: Pete Garnish)
“This was a very disappointing chapter.First of all, [ELA] “We have withdrawn from the Northern Territories and now there is news about liquidation,” she said.
“So we have to go back and pick up some of this mess that Labor has left behind.
”Millions of dollars are spent on failed projects, and the people of the territory suffer.”
Trade, Business and Asian Relations Minister Robin Cahill confirmed the Northern Territory Government owns a $5.44 million stake in ELA.
A spokesperson for his office said the government was “considering options regarding our shareholding that are in the best interests of the territory”.
ELA CEO Michael Jones declined to comment.
Michael Jones declined to comment on ELA’s collapse. (Supply: ELA)
A spokeswoman for ASIC said liquidators would take over ELA and carry out its liquidation in an “orderly and fair manner” to the benefit of creditors.
“It is up to the liquidator to determine what benefits are available and to investigate the causes of the company’s bankruptcy.”
said the spokesperson.
Boot failure
Weipa City Authority chair Jamie Gane said ELA had been looking to move the range to a major mining town in Queensland, but abandoned plans there last year.
She said the company had failed in its attempts to secure the necessary land contracts.
In December, Cook Shire Council received a development application from the Australian Space Center (another trading name used by ELA) to build a new spaceport at Cattle Station in Broomfield, a rural town in Queensland’s Far North.
However, local mayor Robin Holmes said the application was withdrawn in January.
Tim Ayers, the federal minister for industry, innovation and science, did not respond to a question about whether he was concerned about the collapse of the ELA.
Tim Ayres says Australia’s space sector continues to grow. (ABC News: Lincoln Rossall)
However, a spokesperson for the minister said in a statement: Australia’s space sector continues to grow.
“Launch and return is a growth area for Australia’s space sector, with several operational facilities, historic spaceflight activities and more recently the transition to regular operations across the country,” they said.
“The Australian Government has conditions in place to support the launch and return ecosystem, including the implementation of a technology safeguards agreement with the United States that could generate up to $1.2 billion in economic activity over the next 10 years.”