A national waste management company is one step closer to saving Katherine from its biggest financial burden, a new tip costed at up to $40 million.
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Last month, Veolia approached local regional councils, including Katherine, with a proposal for a regional waste solution.
Under the plan, residential waste in Katherine would be collected and taken to transfer stations in each community.
A recent Katherine Town Council decision will see participation in the Big Rivers Region Waste Management Working Group and allow sharing of finances of Katherine's waste management services with Veolia.
Acting chief executive officer Allan McGill recommended the council provide further information to the waste company, but said the decision did not represent a commitment.
"It is just about providing information right now, so [Veolia] can come up with a proposal," Mr McGill said.
"Their vision is to take waste to one central spot in the Top End.
"There is no commitment to anything at this stage."
The proposed regional waste management plan for the Big Rivers Region Waste Management Working Group includes Katherine, Roper Gulf, Victoria Daly and West Daly councils.
"Veolia has approached the BRRWMWG with a proposal for a regional waste management solution which entails the management and collection of residential waste for the five councils, the installation of transfer stations in each town/community and the collection of waste through a scheduled route with road trains," a council report reads.
"The waste will be transported to a regional landfill owned and managed by Veolia, which will likely be in either Katherine or Mataranka.
"This will all be done through utilising local employment as much as possible.
"Preliminary calculations indicate a total cost of $3.5 million per year, of which $1.3 million comes down to pure waste disposal costs."
"A more in-depth cost analysis is however required to get more detailed cost estimations.
"Veolia is interested to work with the councils to analyse the councils' current finances around waste management."
As the Katherine Waste Facility reaches its expiry date the council has implemented a series of rate hikes in preparation, causing an uproar in the town.
The proposed landfill would be owned and managed by Veolia.
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