The Australian Government’s Northern Australia Infrastructure Facility (NAIF) has reached contractual close in relation to a $34 million loan to support a new cotton gin in the Kimberley.
NAIF is backing the Kimberley Cotton Gin project – the construction of a new multi-user cotton gin in Kununurra with an initial processing capacity of 100,000 bales per year.
The project is forecast to deliver at least $250 million of direct public benefit to the region and create a new cotton industry in the Ord Valley, creating around 30 direct jobs during construction, up to 31 direct ongoing jobs when operational, as well as many indirect business and employment opportunities.
Having reached contractual close with NAIF, the proponent Kimberley Cotton Company can now start placing orders for long lead items such as key ginning equipment.
Support for local growers
The Kimberley Cotton Gin project is being supported by key shareholders Kimberley Agricultural Investment Pty Ltd, Prime Grain Pty Ltd and ASX listed Namoi Cotton Limited. The remaining shareholders in Kimberley Cotton Company are local growers in the Ord Valley region as well as MG Corporation, an indigenous organisation representing the Miriuwung and Gajerrong people in the East Kimberley region.
NAIF first made an investment decision to support the project in August 2021.
NAIF CEO Craig Doyle said: “All of NAIF’s investments can be defined as transformational to Northern Australia and this is particularly true in the Kimberley where we are helping diversity the economy with our support for the Kimberley Cotton Gin.
“Reaching contractual close is an important milestone which means those working on the project can really kickstart the construction process. We congratulate those behind Kimberley Cotton Gin on reaching this stage and look forward to working with them during the construction phase.”
NAIF is expecting the proponents to draw on the facility in early 2023, with the project completed in mid-2025, just in time for the commencement of the ginning season.
Across Northern Australia, NAIF has committed $3.9 billion to infrastructure projects, with $2.6 billion contractually committed to projects. NAIF backed projects are forecast to support 14,800 jobs and provide $29 billion in economic benefit.
Media release by Northern Australia Infrastructure Facility (NAIF) 11 November 2022.
Read the case study for the Kimberley Cotton Company.