8 October 2012
On October 8th 2012 CGL expanded its portfolio of strategic land holdings with the finalisation of the purchase of the sugar mill on Weaber Plains Road.
The sugar mill is located on a 19 hectares lot which is the only significant fully serviced rural industrial land holding in the Ord River Irrigation Area.
The site has a substantial power supply connection, pipeline access to water from the M1 Channel and modern, well-constructed office and workshop facilities.
There are a number of lease agreements in place that will provide CGL with an ongoing income stream.
CGL believes the development of the land associated with the current Ord Expansion Project and other proposed Ord farmland projects will see the return of broad acre cropping on a far greater scale than previously seen in the Ord and that this will see the development of a processing plant of some form.
This asset provides CGL with a unique opportunity to assist with and influence the development of an industry that will deliver the benefits of large scale agricultural exports through our port operation and servicing the increased regional energy demand through our fuel business, reducing our reliance on the mining sector. There is the potential for the sugar mill site to e considered as a location for a processing plant or as a location for the development of other infrastructure necessary to service a large scale farming operation in the Ord.
Whilst much of the milling equipment is still in place, it is unlikely that this particular mill will ever be used again should the Ord sugar industry be re-established and CGL will be working proactively to sell components of the mill to contribute towards the purchase cost and the re-development of the site.