WA's first eucalyptus oil production plant to start operating later in yr

29/4/96

Western Australia's first eucalyptus oil production facility will begin operation later this year with a $100,000 grant under the Soil and Land Conservation Council's Regional Enterprise Scheme, Primary Industry Minister Monty House announced today.

Mr House said the extraction process was still being developed by Curtin University but harvesting of the oil was expected to begin this spring from trees planted two years ago.

It was hoped the extraction equipment would be fully portable and transferred between growing locations.

"Oil mallee was widely planted in 1994 throughout Canna, Kalannie, Narembeen, Wickepin, Woodanilling and Esperance as a landcare revegetation effort that produced financial returns," Mr House said.

"Landcare benefits have already been recognised but the establishment of this eucalyptus oil extraction and production facility will allow farmers to start seeing a financial return.

"Oil mallee has proved a worthy landcare and financial alternative to bluegums for farmers in low rainfall regions."

The product is a high cineole eucalyptus oil that is extracted from the leaves of selected eucalyptus.

It is a long-established product that is used in non-prescription pharmaceuticals and various perfumes, cosmetics and cleaners.

Mr House said production of the oil was expected to reach 500 tonnes per annum by 1998 and the association had already found a purchaser for all of its product for at least the next three years.

He said at present the world market consumed 3,000 tonnes of eucalyptus oil per year.

The organisation also planned to improve the genetic quality of oil mallee leaves and to develop the most cost-effective means of oil extraction.

In addition, other by-products of the trees would be investigated, including the use of the wood as a fuel source.

Media contact: Nicole Trigwell (09) 481 2044