OGA wins approval to expand Flinders Bay abalone ranch

Fremantle-based Ocean Grown Abalone has been granted a licence to develop 5,000 artificial reefs to harvest greenlip abalone at the company’s Flinders Bay lease, located in Augusta.

The Western Australian Department of Primary Industries and Regional Development gave OGA approval to expand the number of artificial abalone reefs it operates from 10,000 to 15,000.

In a statement to the ASX, the company said this would enable them to further expand the Flinders Bay reefs combined maximum capacity to 300 tonnes per annum, an increase of 100 tonnes per annum from the current combined maximum capacity.

OGA said it would also work in collaboration with the Department to undertake scientific research focused on growth optimisation of greenlip abalone over its existing 10,000 reefs.

“OGA sees the opportunity to work with DPIRD as a unique opportunity to develop the abalone industry in Western Australia,” the statement read.

The expansion plan follows OGA announcing in October that it had signed a framework sales agreement with Hong Kong based seafood import group Wo Hing.

Wo Hing's first order under the deal was for more than 50 tonnes of harvested greenlip abalone, valued at around $US1.95 million ($2.77 million).

OGA will provide Wo Hing with 12 monthly shipments over the term of the order.

Also in October, OGA appointed Busselton-based Big Ben Builders to build a processing facility at the Augusta Marina, near the company’s artificial reefs at Flinders Bay.

The new facility will allow OGA to export up to 7,500 kilograms of live abalone each week, giving the company access to higher profit margins associated with live supply.

The contract is worth approximately $2.7 million, with the facility expected to be completed by the end of the 2019 financial year.

Shares in the company were flat at 14 cents each at 12.30pm AEDT.