The Mowanjum Aboriginal Corporation plans to seek private partners to fund an expansion of its irrigated farming operation near Derby after the state government granted an option for freehold tenure over its land.
The Mowanjum Aboriginal Corporation plans to seek private partners to fund an expansion of its irrigated farming operation near Derby after the state government granted an option for freehold tenure over its land.
MAC chief executive Steve Austin said the group was aiming to develop 4,100 hectares of irrigated land using local groundwater, out of its total holding of 55,000ha.
That would enable to station to carry up to 15,000 head of cattle.
Mr Austin said the investment would be staged, but in total could cost in excess of $20 million.
He said the government decision, which would allow the land to convert from a pastoral lease to freehold tenure once the investment was complete, would allow the corporation to start negotiations.
“We need an investor,” Mr Austin said.
“We have the land and the water but we don’t have the financial resources to build the infrastructure.”
Mr Austin said one of his biggest aims was to create employment for the 350-strong Mowanjum community.
The government initiative is part of the Water for Food Land Tenure Pathway for Irrigated Agriculture project.
Water Minister Mia Davies said the success of a recent Water for Food irrigation trial at Mowanjum station demonstrated the potential to further develop irrigated agriculture in the region.
“The trial showed the suitability of soils at Mowanjum station for irrigated agriculture and that the corporation has the capacity to run intensive cattle operations on the station,” she said.
“This will pave the way for further investment and growth in the West Kimberley.”
The $3.5 million trial project involved the development last year of a centre pivot irrigation system covering about 38ha.
Mr Austin said the corporation had up to 650 cattle on the trial plot during the last dry season.
It was currently cutting and baling hay that has grown on the irrigated plot over recent months.
The Mowanjum project follows the development over many years of privately-owned irrigated farming projects in the Kimberley, including at Liveringa and Yeeda stations.
Liveringa station uses an irrigation scheme developed in the 1960s and 1970s for sorghum production.
Of the original 60,000ha for the irrigation area, 12,000ha have been converted to freehold, supplemented by three 100ha centre pivots.
Since 2014, Graham Laitt’s Milne Agrigroup and Gina Rinehart’s Hancock Prospecting have jointly owned the Liveringa and neighbouring Nerrima cattle stations, through joint venture company Liveringa Stations Beef.
Yeeda Pastoral Company has about 80,000 head of cattle and has recently invested $25 million developing an export abattoir midway between Derby and Broome.
The abattoir proceeded after Yeeda shareholders Jack Burton and Mervyn Key secured a $23 million mezzanine loan facility through Hong Kong-based private equity fund ADM Capital.
The loan was used to finance a rights issue, with the proceeds used to pay out holders of redeemable preference shares.
As well as the abattoir, which will have capacity to process 60,000 head per year, Yeeda has accelerated construction of a feedlot with capacity to hold up to 40,000 cattle at the abattoir site.
It has also applied for water licences to increase pivot irrigation on freehold land at Yeeda station to grow feed for the cattle.
The abattoir means the Kimberley industry will not be reliant on live exports.
