Despite the State Government’s recent moves to improve Western Australia’s ability to attract investment for big-ticket developments, foreign investors remain wary, according to one major overseas investor.
Burrup Fertilisers deputy managing director Vikas Rambal said numerous and strict approvals processes were a “scary” prospect for foreign companies looking to invest in WA.
Burrup Fertilisers is behind the $630 million liquid ammonia plant under construction on the Burrup Peninsula, near Karratha.
While the construction of the project is now on target, according to Mr Rambal, it was difficult to establish in WA. In fact, to date it is only one of six major projects originally slated for the Burrup to have made it through to construction phase.
Mr Rambal said his company was initially attracted to WA by cheap gas prices (which it was subsequently able to secure), however things became difficult during the approvals process.
“There has to be a system in place to customise preconception approvals where a man can say ‘I want to develop a plant or something and I need to do these things’,” Mr Rambal said.
He said several foreign chemical and fertiliser producers were interested in downstream gas processing opportunities in WA, but they remained wary. And while the State Government was aware of the difficulties companies faced, he said issues such as an increasing gas price also presented hurdles for downstream gas processing projects.
News of the difficulties foreign companies face emerged as State Development Minister Clive Brown released the Government’s latest proposal to simplify WA’s approvals process.
The Northern Strategic Industry Areas (SIA) Environmental, Social and Economic (ESE) identifies economic, social and environmental factors associated with developing a range of potential industrial estates, including Maitland/West Intercourse Island, Boodarie, Cape Lambert/Dixon Island, Cape Preston, Onslow and Oakajee, near Geraldton.
Mr Brown said the study, released for a six-week public comment period last week, would provide major project proponents with economic, social and environmental data to assist with engineering, design and approvals processes.
