As of 2025 the only mining in East Timor is for oil and gas. But this is changing – the potential is significant, and in 2023 the first exploration licences were awarded.
But why should we be interested in these events?
East Timor (or Timor-Leste if you are Portuguese) is almost our nearest neighbour – PNG is actually closer. Timor is less than 500 km from mainland Australia and 750 km north-west of Darwin but is separated from Australia by a 3 km deep trough. The island of Timor is about 474 km long and about 95 km wide and has an area of about 31,000 km2. East Timor is almost exactly half of the island (15,000 km2). To put this in perspective, Tasmania is 64,500 km2 – so East Timor is pretty small. While East Timor is an independent country, West Timor is a part of Indonesia.
But what an amazing history this place has had!
Rich in fragrant sandalwood forests, from about the thirteenth century it was part of the trading networks that stretched between India and China, but these forests also attracted both the Dutch and Portuguese in the early 1500s. The island never received any significant investment from either the Dutch or the Portuguese, and sandalwood remained the major export until about the mid-nineteenth century. It was about then that coffee started to become important and today coffee beans are the most important export after oil and gas. Ironically, the coffee plantations allowed at least a partial recovery of the sandalwood forests.
In 1702 it officially became a Portuguese colony and remained as such until the Japanese invasion in February 1942. At the end of WW2 in 1945, it reverted to being a Portuguese colony until 1975, at which point a revolutionary leftist government in Portugal immediately cut loose all their colonies – including East Timor. The country was quickly taken over by Indonesia in 1976. Subsequent independence movements, eventually supported by the Australian Government, resulted in a UN monitored referendum. The people voted overwhelmingly for independence from Indonesia and full independence came in 2002.
The newly independent country established its capital in Dili with two official languages – Tetum and Portuguese – although there are 15 different languages spoken – and it’s probably fair to say that English and Indonesian are the working languages. But with a population of almost 1.4 million, East Timor remains a very poor country. Revenues from the oil and gas in the Timor Sea account for 80% of GDP.
Oil and gas exploration began in the Timor Sea in the 1960s but was suspended in 1975 because of unresolved border disputes with Indonesia. After long and intense negotiations between East Timor and Australia, 1992 saw the creation of the Timor Gap Zone of Cooperation Treaty on production sharing. Since then the significant potential of the zone is being realized. Today production is administered by the Northern Territory, Western Australia and the Timor Gap Authority.
But for a poor country rich in minerals potential, the next step was obvious – develop that potential.
Naturally, East Timor is still at the very early stage in the formation of infrastructure, institutions, human resource capacity, and legislation that can support the full control of its natural and mineral resources. But significant progress has been made.
East Timor is seeking to work with Australian businesses with specialist mining equipment and technical expertise. The National Authority for Petroleum and Minerals will be inviting bids for mining rights in 49 concession areas for metallic ores, gems, radioactive ores, rare earths and coal. The first four exploration licences referred to above all went to Australian companies.
While there has been little to no modern exploration undertaken, the major potential seems to be with:
- Copper
- Gold
- Silver
- Zinc
- Manganese
- Phosphate
- Marble
While this newly independent country is still in the early stages of its political, social, and economic development, things are now looking very optimistic. As Australians, we must continue to work closely with the East Timorese people to ensure a prosperous future for us both. Never forget, they are our very near neighbours and deserve our respect and assistance.
