AAco says it is well on track with plans to develop an $80 million meat processing facility in the Northern Territory, and intends to seek co-investors in coming months once Government support for associated infrastructure is secured.
The company lodged a development application with the NT Government in September 2011, which it said was a critical milestone for the project.
“Pending government approvals and government infrastructure funding being secured, the Board will be in a position to consider the appropriate capital structure and ultimately, final project endorsement,” AAco managing director David Farley said in the company’s full-year results statement issued this morning.
It is anticipated the plant will cost approximately $80-85 million, including land and infrastructure.
The company said it plans to seek co-investors for the plant during 2012, once the final development approvals have been received and it is satisfied that the appropriate level of government support for the infrastructure is in place.
It is anticipated that this process will be resolved in the first half of 2012.
“With no local beef processing facilities in northern Australia, this new facility will support the whole of northern Australia’s beef industry, allowing cattle to be processed locally and reducing transport and freight costs for northern producers who currently need to truck live cattle across large distances to southern processing plants,” Mr Farley said.
“We have estimated that this project will produce savings of 6.5 million transport kilometres per annum, contributing to significant reductions in carbon emissions.
Mr Farley said the final approval by the Board was dependent on Federal and Northern Territory Government commitments to deliver vital project and public infrastructure.