Premier Colin Barnett has released a master plan for the Kimberley gas precinct, just north of Broome, on the same day he announced his government will compulsorily acquire the site for the project.
Premier Colin Barnett has released a master plan for the Kimberley gas precinct, just north of Broome, on the same day he announced his government will compulsorily acquire the site for the project.
The announcement was welcomed by project proponent Woodside, but was heavily criticised by the Kimberley Land Council and the state Labor party.
The master plan accommodates the key LNG processing facilities and related activities for at least two proponents.
The precinct is expected to produce a combined total of 50 million tonnes per annum of LNG, within a 2,500 hectare fenced land area and a further 1,000 hectare marine area for port and shipping.
"The Master Plan clearly demonstrates that we can develop the Browse LNG precinct, within a relatively restricted land area and with all but 2km of the nearby coastline remaining open to public access." Mr Barnett said.
"While it provides a possible layout for the precinct, individual components will require specific environmental and Aboriginal heritage approvals before they can be built."
Woodside Petroleum which is planning to develop the first LNG plant at the site, in its capacity as operator of the Browse joint venture, welcomed the announcement.
The company said the Browse joint venture is on track to complete a $1.25 billion work program by mid-2012.
The work program must be ready to allow the Browse joint venture partners to make a final investment decision on the project.
Woodside said the compulsory acquisition maintained the opportunity for a negotiated outcome to be secured with the traditional owners.
At the same time, it would provide a greater degree of certainty for the development, Woodside said in a statement.
"We remain committed to delivering the benefits we have promised during our discussions with the Kimberley Land Council and Native Title claimants," Woodside said.
These initiatives are worth in excess of $1 billion over the life of the development and were among the most substantial made by a development to support indigenous people, the company said.
After weeks of threatening compulsory acquisition for the $30 billion Woodside Petroleum-led project, Mr Barnett officially announced the government's intention to proceed.
The land involved in this process is unallocated Crown land, over which no Native Title has currently been determined.
He cited his frustrations over delays on an indigenous land use agreement and ongoing internal divisions among Aboriginal claimant groups.
"Developing gas from the Browse Basin is critical for the development of this State, this nation and its indigenous people. Economic independence and real opportunity is the best way towards self-determination for Aboriginal people and goes a long way towards reconciliation," Mr Barnett said.
"In developing this resource, the Government will not compromise on environmental standards, good planning, high standards of safety or benefits to the Aboriginal community.
"Compulsory acquisition is a clearly defined process which involves negotiating in good faith with registered Native Title claimants over a six-month period. If an agreement cannot be reached, the State will refer the matter to the National Native Title Tribunal for arbitration, which takes another six months.
"The State Government would prefer to sign an ILUA based on consent, and I continue to encourage claimants to resolve the issues within their groups," said Mr Barnett.
But KLC chief executive officer Wayne Bergmann said the decision was outrageous and amounted to "sticking a finger in the eye" of Aboriginal people in the Kimberley.
He warned that compulsory acquisition could be the tipping point for traditional owners to withdraw their support for the project.
The KLC in April 2009 signed a heads of agreement for the project to deliver $1.5 billion in benefits to Aboriginal people in the region.
Mr Bergmann said the negotiations had to be conducted in good faith and not under pressure of compulsory acquisition.
"The premier risks this project collapsing because of the state's own incompetence," he said.
"This only provides certainty for a rich mining company to make billions of dollars for their shareholders.
"This is not about providing sustainable developments to regional WA or Aboriginal people in the Kimberley region," Mr Bergmann said.
"This is colonisation all over again, of taking an interest away from the most disadvantage Aboriginal people for the stronger party."
Mr Bergmann warned that the issue could escalate very quickly into a protest situation no one could control if the state stayed on its current path.
He said there was no time pressure to reach an agreement because Woodside still did not have any customers for the Browse Basin gas.
Shadow Treasurer Ben Wyatt today said decision will have detrimental effects on the
future of Western Australia's credibility in the international mining and resources sector.
"The Premier has singlehandedly created the current situation by disbanding the Northern
Development Taskforce and by naming his personal preference for a site before the process
was completed," Mr Wyatt said.
"He then ensured that any goodwill in the negotiations was destroyed when he threatened
compulsory acquisition. You cannot expect to negotiate with someone and get a fair and
reasonable outcome when you are holding a gun to their head," he said.