Offical opening of $27M Lake MacLeod gypsum facilities in Carnarvon

June 10, 1997

Western Australia is poised to become a major international exporter of gypsum following the commissioning of the $27 million Lake MacLeod gypsum facilities north of Carnarvon.

Officially declaring open today one of WA's newest resource projects, Resources Development Minister Colin Barnett said production from the gypsum mine would elevate Australia into the top 10 gypsum-producing countries in the world.

The plant would supply 1.5 million tonnes of gypsum, or approximately $30 million worth each year to export markets, beginning later this year. In contrast, last year's Western Australia's total gypsum production was only 260,000 tonnes, worth $2.35 million.

Mr Barnett said the plant was an excellent achievement for Lake MacLeod Gypsum, a division of Dampier Salt.

"The Lake MacLeod gypsum deposit was able to be developed following the signing of long-term supply contracts with major wallboard and cement manufacturers in Japan," he said.

"The deposit contains three billion tonnes and based on forecast production, it will take several hundred years to exhaust the resource."

The gypsum project has provided an extra 50 jobs, increasing the total number of people employed at Lake MacLeod to 125.

"The project has also had a very high level of local content which is pleasing," Mr Barnett said.

"During construction, approximately 90 per cent of goods and services were sourced in Australia, about 65 per cent of those from Western Australia.

"It is a commendable project for the proponents and one which promises to be successful for WA and the gypsum market."

Mr Barnett said that Lake MacLeod Gypsum was strategically placed to serve the burgeoning economies of Asia.

"With a growth rate of around six per cent of gross domestic product each year, countries like Indonesia, Malaysia, Singapore, South Korea, Taiwan, Vietnam and the Philippines all need gypsum for their expanding infrastructure," he said.

"Accompanying economic growth is a natural demand for housing, offices, factories and other infrastructure. Most of this activity requires cement and plasterboard using gypsum. WA's newest export will certainly help to fill that demand."

Media contact: Justine Whittome (08) 9222 9699