$3.5b plant: 'good as dead'

Perdaman Chemicals and Fertilisers’ planned $3.5 billion coal-to-fertiliser urea plant in Collie is as good as dead, according to Collie- Preston MLA Mick Murray.

Work on the project was due to start at Shotts Industrial Park in 2010, creating 1500 jobs during construction and 200 permanent jobs when it began operating.

Mr Murray said the project had suffered the same fate as other major WA projects including Woodside’s Browse gas hub.

He took a swipe at Premier Colin Barnett saying he had not seen enough support for the project from the Government.

“The Premier has just gone quiet on that (Perdaman) and let it go,’’ Mr Murray said.

“It is a vital structure that we need in the South West to give people construction jobs.’’

Mr Barnett told the South Western Times the State Government was still working with Perdaman.

“We recognise this is a major project for the South West and as a Government are doing what we can to facilitate the project going ahead,’’ Mr Barnett said.

He said the Government’s support for the project was shown in 2011 when he pledged $83.5 million in infrastructure upgrades in Collie to support the project.

Mr Murray said he was doubtful about the project and as more time passed it seemed less likely it would “get up and running”.

“We need a major job such as the Perdaman plant down there to allow people to stay in their homes – not move away from their families – and work in the region,’’ Mr Murray said.

When the plans for Perdaman’s fertiliser plant were announced in 2009 it was hailed as a major boost to the region’s economy.

It was hoped Perdaman’s start date would coincide with the end of Worsley’s $2.5 billion expansion and keep job opportunities flowing into the South West.

Bunbury Wellington Economic Alliance chief executive officer Matt Granger said the alliance supported Perdaman and regretted the plant had not yet become a reality.

Perdaman claims Lanco Infratech, Griffin Coal’s owner, ruined its chances of securing finance for the fertiliser plant because it reneged on a deal to supply coal.

Perdaman declined to comment when asked by the Times if it was still working on its plans for Collie.