THE long-awaited recovery of investment in WA’s resource sector has been foreshadowed by Woodside Energy’s disclosure that design engineering work for its proposed $2.6 billion North West Shelf Train 4 project will be sourced from Perth rather than overs
THE long-awaited recovery of investment in WA’s resource sector has been foreshadowed by Woodside Energy’s disclosure that design engineering work for its proposed $2.6 billion North West Shelf Train 4 project will be sourced from Perth rather than overseas.
The industry has been further buoyed by the discovery of a high-grade, 750,000-ounce gold resource near Kalgoorlie, announced this week.
Development of the Raleigh Deposit, on joint venture ground, 51 per cent owned by Goldfields, 36.25 per cent by Tribune Resources and 12.25 per cent by Rand Mining, could start during the first half of next year.
The Raleigh deposit is 2.5 km south of Goldfields’ Kundana mine, less than 30 km from Kalgoorlie.
Woodside this week said international engineering specialists would be commissioned to work with Perth engineers to develop Train 4.
“Engineering procurement con-tracts have previously been sourced from overseas, from centres such as London and Amsterdam,” a spokesman said.
“This time we will bring to Perth specialist engineers to work with local engineers, which should bring the pool of engineers in Perth to about 350.
“We have built up the capacity over a number of years to do this.”
The scale of the project and its significance for the State is enormous.
Up to 70 per cent Australian content will be used and on-site employment during the 38 months of construction will peak at 2000.
The project includes construction of a village at Karratha for 520 people.
A decision to proceed with Train 4 and the development of the gold deposit at Kalgoorlie would help revitalise WA’s resource sector, that has suffered from little investment during the past 18 months.
The industry is relying on several proposed major infrastructure projects, such as Train 4, to proceed to stimulate activity.
A decision on final investment for the North West Shelf proposal will be made early next year.
Work would start soon after.
The Woodside spokesman said tenders for early construction lay-down work were being sought and a production line position for the development of gas turbines in Italy had been secured.
“We have been preparing for this expansion since 1996,” he said.
More than $100 million has been spent on early engineering design work.
The North-West Shelf Venture last month signed letters of intent for the sale of one million tonnes of LNG from 2004 with Tokyo Gas Co. Ltd and Toho Gas Co. Ltd.
It is negotiating with five potential customers, also from Japan.
Train 4 would produce its first LNG from mid-2004.
There is scope for expansion beyond Train 4. The proposed Train 5 plant could be operational by 2006 if sufficient demand can be sourced.
Woodside operates the Shelf, a joint venture between BHP, BP, Chevron, Japan Australia LNG and Shell.
