$80 million solar salt producing project launched at Onslow

28/11/97

A project almost 30 years in the making was launched today when Resources Development Minister Colin Barnett pushed the button to begin pumping salt water to an 80sq.km salt field at Onslow in the State's North-West.

The $80 million project, the dream of five Western Australians who formed Gulf Holdings Pty Ltd in 1969, will eventually produce 2.5 million tonnes of solar salt each year on the tidal flats surrounding the town of Onslow.

Mr Barnett said it was the commitment of a respected international chemical company, Akzo Nobel, that was the key to turning the forethought of these visionaries into a world-scale salt project.

Project owner-builder, Onslow Salt Pty Ltd, is a partnership between WA's Gulf Holdings and Netherlands-based chemical giant, Akzo Nobel, the major shareholder, and Asia Pacific partners.

"The State welcomes the Onslow Salt partners, whose considerable resources and expertise will propel the vision of Gulf Holdings into what will be one of the largest, most efficient and cost-competitive salt producers in the world," Mr Barnett said.

Project development began in July 1997 and included sea water pumps, evaporator ponds, materials handling and port facilities for vessels up to 45,000 dead weight tonnes. The project would employ approximately 100 people during construction and provide around 50 permanent jobs. When it reached full capacity the field would produce around $50 million of high quality salt per annum.

"This project has been a major boost for the Onslow area," Mr Barnett said.

"No doubt it will prove the spark for new projects in the future and provide local business with further opportunities for expansion. Onslow Salt has provided the kick-start to what could be a major regional development.

"The project is also expected to lead to improved medical facilities in the area and an upgrading of the airstrip."

The Minister said he was also delighted about the successful negotiations between the company and the local Thalanyji Aboriginal community, which had seen the company agree to set up a charitable trust, build infrastructure within the community and employ a number of people both within the construction and operational phase.

"This is clearly an example of how negotiations can be carried out to overcome native title claims where both parties benefit at the end of the day," Mr Barnett said.

"Onslow Salt is a great example of a resource project meeting the objectives of the Government. The project has a high local content of around 70 per cent, will provide long-term employment for around 50 people, and will assist in the development of community and industry infrastructure."

The Minister said the development of the project's port facilities could lead to an expansion of the service industry to the area's extensive offshore oil and gas fields, further development of the local fishing industry, and improved recreational facilities. It could also lead to the gas reticulation of the town and a gas-fired power station.

To produce the salt, ocean water is pumped into the ponds and, following evaporation of the water, salt is deposited in a crystalliser pond to be harvested and washed. Between now and 1999, a thick pavement of salt needs to be established before harvesting of the surface salt can begin.

In 1996-97, Western Australia produced 7.5 million tonnes of salt worth $150 million. By the turn of the century, the Onslow Salt project could expand WA's solar salt production to over 10 million tonnes per annum. WA currently produces around 35 per cent of total world salt exports.

"On the horizon, there is potential for additional demand for WA salt with the advent of a petrochemical plant in the Pilbara, near Karratha," Mr Barnett said.

"This could provide a market for another one million tonnes per annum of salt."

Media contact: Justine Whittome, (08) 9222 9699