Move to set up heavy industrial site near Northam

The State Government is moving to establish a major new regional heavy industry site near Northam to locate a proposed $50 million value-adding industry.

Deputy Premier Ian Taylor said the Government planned to set up the industrial estate at Meenaar.  The area was being considered by Ashton Mining as the location for a rare earths downstream processing plant that the company was currently evaluating and which could generate about 200 jobs.

Mr Taylor said this was a prime example of how the State's industrial development push would be implemented through the Government's 'WA Advantage' economic development program.

"The Government fully supports the Ashton project and will provide every assistance to ensure it goes ahead," Mr Taylor said.

"Last year we announced a policy to locate heavy industry in a network of regional sites and that has been expanded on in 'WA Advantage' with special incentives being offered to industry to regionalise," Mr Taylor said.

"The Meenaar site in the Avon Valley has now been identified by the Government's industrial land authority.

"The local community has expressed broad support, tested through a survey conducted for the Department of State Development.

"A community consultation organised by State Development was held last week and was extremely successful with a broad cross-section of the community participating.

"The approval processes will include comprehensive enviromental reviews.  Those reviews will be released within the next six weeks and will be available for public comment.  

"The Government is confident that this major new industry in a region wanting growth will gain strong support."

Mr Taylor said the proposed plant would employ more than 100 people during construction and up to 60 when in operation.  It would produce tens of millions of dollars in exports each year.

"The economic impact of this type of infrastructure development by Government and industry investment by the private sector is the source of Western Australia's future prosperity."

Mr Taylor said that if all went to plan, the 600 ha Meenaar estate, of which only half would be developed with actual industries, could become home to a variety of manufacturing businesses including specialised foundries, food processing, straw pulp and woollen mills and clothing manufacture.

"Meenaar was selected because of its proximity to rail transport, access to water and energy supplies and compatability of proposed industries with the surrounding environment," he said.

"The Government's assessment also shows that the nominated industries would not expect to present unacceptable risks, noise, odours or air emissions."

The Deputy Premier acknowledged the concerted efforts of the Avon Community Development Foundation which initially suggested the site.

The Avon region has a population of 25,000 within an 80 km radius of the site.

Mr Taylor stressed the importance of increasing WA's ability to add value to raw materials as the State built up its industrial base in the regions.

"Anyone doubting the worth of these enterprises only needs to look at the value which processed products attract.  For instance, the rare earth used in the production of TV screens increases in value 150 times through downstream processing," Mr Taylor said.