China looks to Ord for sugar revival

Companies from China have expressed interest in buying land in the expanded Ord Irrigation Scheme in Western Australia.

The scheme is being expanded by nearly 8,000 hectares, with the land release process expected to start in late September.

Director of the expansion project Peter Stubbs, says Chinese companies have flagged interest in re-developing the region's sugar industry.

"The Chinese interest is particularly keen on sugar, and there are Australian companies looking at sugar (in the Ord) as well,

"It's a proven crop that's been grown here for well over a decade and it's a crop that many growers in the valley would love to see come back into the system."

The Ord's sugar industry collapsed back in 2007 due to poor world prices and a lack of scale.

Prior to its collapse, the industry was being driven by foreign investment care of the Korean company CheilJedang Corporation, which owned the now mothballed Ord Sugar Mill.

Mr Stubbs says under the Ord Final Agreement the region's traditional owners through the MG Corporation, have the option to acquire around 1,000 hectares of Ord Stage 2.

But he says there's no reason why a foreign company couldn't purchase the rest.

"It's possible that a single corporate entity, be that Australian or international, could acquire the land."

The East Kimberley region is no stranger to foreign investment, with a number of the region's cattle stations bought by the UK based Terra Firma back in 2009, and the famous El Questro Station now owned by the American company Delaware North.

Mr Stubbs says land in Ord Stage 2 won't necessarily go to the highest bidder.

"Price is an important consideration, but by no means the only one,

"There will be a tender criteria that any bidder will need to address, and other factors that will come into consideration are things like an investors proven ability to do these type of developments and what regional benefits are likely to flow from their investment."

It's expected Ord Stage 2 will be sold through a three month open tender process, subject to Federal Environmental approval which is due by mid-August.

source: abc.net.au