Kemerton Strategic Industrial Area Strategic Proposal and Strategic Assessment
BACKGROUND
What is the Kemerton Strategic Industrial Area?
The Kemerton Strategic Industrial Area (Kemerton SIA) is a State priority project, established for strategic and heavy industries operating in the South-West region and home to large scale proponents. The Kemerton SIA is also the largest SIA in Western Australia’s south west region and is specifically designated to provide land for downstream processing industries that value add to the region’s extensive natural resources, such as mineral sands and lithium.
The Kemerton SIA continues to support growth among industrial businesses in the region by facilitating access to extensive common-use infrastructure, deep pools of skilled labour and proximity to other industrial businesses that exhibit a high degree of complementarity. Currently the SIA encompasses eight businesses covering a range of industrial activities, including
- Transfield gas fired peaking power plant
- Tesla peaking power station
- Albemarle Lithium hydroxide processing plant (under construction)
- Kemerton Silica Sand production plant
- Simcoa Operations silicon production plant
- Nufarm Coogee chlor-alkali production plant
- Cristal titanium dioxide production plant
- BOC Limited oxygen and nitrogen production plant
The Kemerton SIA makes a significant contribution to the economy of both the South-West and the State generally, supporting over 1,000 direct jobs, creating flow-on employment impacts.
Overall, the Kemerton SIA contributed $965 million to the State’s total gross output and $490 million to the Gross State Product (GSP) in 2018/19. The additional operating impacts of businesses currently under construction is anticipated to increase the Kemerton SIA’s GSP contribution to the State by a further $300 million and create approximately 1,300 additional jobs in region from 2022.
When was the Kemerton SIA established?
The Kemerton SIA was first zoned for industry under the Shire of Harvey Local Planning Scheme in the late 1990’s. A larger Kemerton SIA area was subsequently identified in the Industry 2030 ‐ Greater Bunbury Industrial Land and Port Access Plan (2000). The expanded area was included in the Greater Bunbury Region Scheme in 2007.
Designed for strategic and downstream processing industries in the South-West region of Western Australia, Kemerton SIA is connected to major road, power and gas networks with land reserved for a future rail connection and is just 17km north-east of the Bunbury Port.
The Kemerton SIA comprises the following areas:
- 2,012 ha Industry Core for the establishment of heavy and strategic industrial facilities; and
- 5,498 ha surrounding Buffer that is intended to ensure the impacts of industries located in the Core do not adversely impact premises beyond the boundary of the KSIA. Also contained within the Buffer is the 160 ha Ancillary Industry Area.
Who owns the Kemerton Strategic Industrial Area?
The Kemerton SIA comprises a number of different landowners. The primary landowners are DevelopmentWA and the Department of Biodiversity, Conservation and Attractions. There are also some other State Government and private landholdings. Most remaining residences are owned by the State.
What is planned for Kemerton SIA?
Whilst a number of businesses already operate within the Kemerton SIA, the Department of Jobs, Tourism, Science and Industry (the State governments lead agency for SIA development) and DevelopmentWA (the State governments central land development agency) are seeking State and Commonwealth environmental approvals to allow industrial proponents to further develop in the Industrial Core and associated infrastructure corridors.
The ultimate land use proposed in the Industrial Core is to be heavy industrial, separated from sensitive uses by the established Buffer. Located within the boundary of the Industry Core and Buffer is a strategic mineral resource, comprising Titanium Zircon and a regionally significant sand resource. These resources may be subject to extraction prior to development of the KSIA.
No further development on Government landholdings is anticipated in the surrounding Buffer area except along required infrastructure corridors.
The Ancillary Industrial Area will be developed as a general industrial area to support proponents operating in the Industrial Core.
What guides development in the Kemerton SIA currently?
The Local Planning Scheme, Greater Bunbury Region Scheme and Kemerton SIA Structure Plan guide the current use, subdivision and development of the Kemerton SIA and set out matters that the Shire of Harvey, Western Australian Planning Commission, Environmental Protection Authority, Commonwealth Department of Climate Change, Energy, the Environment and Water and other regulatory agencies require to be addressed before subdivision or development can proceed.
STRATEGIC ASSESSMENT
What is the need for progressing further State and Commonwealth government environmental approvals?
In order to provide certainty in securing industrial approvals for future proponents and providing appropriate outcomes for environmental values, a Strategic Proposal/Strategic Assessment is proposed being implemented at Kemerton. The intention of the Strategic Proposal and Strategic Assessment is to consider the Kemerton SIA and its environmental values in a strategic, holistic approvals framework rather than on a project by project basis, as is currently implemented at Kemerton. It is anticipated that better outcomes will be created for both industry and the environment through implementation of a strategic approach to the environmental approvals process by considering key environmental factors/values at a strategic level, applying avoidance and mitigation measures and ensuring an appropriate and tailored offset plan and implementation framework is in place.
The Strategic Assessment will support the sustainable development of Kemerton SIA for up to 50 years and this will provide certainty for future development while delivering these improved environmental management and conservation outcomes.
What are the State and Commonwealth government environmental approval processes?
The Department of Jobs, Tourism, Science and Innovation and DevelopmentWA are progressing the following strategic environmental approvals for the Kemerton SIA:
- A Strategic Proposal under Part IV of the Western Australian Environmental Protection Act 1986 (EP Act).
- A Strategic Assessment of the Kemerton SIA under Part 10 of the Commonwealth Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act)
The requirements of the Strategic Proposal and Strategic Assessment are set out in the following:
- Environmental Scoping Document (ESD) under the EP Act.
- Strategic Assessment Agreement and associated Terms of Reference under the EPBC Act.
The Strategic Proposal detailing the proposed Kemerton SIA development was referred to the EPA on 21 October 2021. On 18 November 2021 the proposal was determined to require assessment via Public Environmental Review, under the Environmental Protection Act 1986 (EP Act).
An ESD has been prepared by DevelopmentWA that outlines the work required and key areas of focus of the environmental review (referred to as Impact Assessment Report fo the Strategic Proposal/Strategic Assessment), required by s.40(3) of the EP Act.
The Terms of Reference have been prepared by the Department of Climate Change, Energy, the Environment and Water, as a requirement of section 146(1B)(b)(ii) of the EPBC Act, that details the requirements for the Strategic Assessment for Matters of National Environmental Significance (MNES) protected under the Commonwealth EPBC Act
On 31 March 2022, the Commonwealth Minister for the Environment entered into an agreement with the Minister for Lands and the Minister for State Development of Western Australia to undertake a strategic assessment of the impacts of actions taken in the KSIA (Strategic Assessment). A draft Terms of Reference was prepared by the former Department of Agriculture Water and the Environment, as a requirement of section 146(1B)(b)(ii) of the EPBC Act, that details the requirements of the Strategic Assessment for Matters of National Environmental Significance (MNES), protected under the Commonwealth EPBC Act.
The next step in the environmental approvals process is the preparation of a Kemerton SIA Impact Assessment Report (IAR) to satisfy the Commonwealth and State government’s environmental assessment requirements, as detailed in the ESD and Terms of Reference and informed by any public comments.
The IAR to support the Strategic Proposal and Strategic Assessment is proposed to be streamlined to limit repetition and duplication. One consolidated IAR will be prepared that addresses both State and Commonwealth matters, including:
- A Plan that details what industrial development will occur over the life of the approval, this includes both development activities and environmental commitments;
- An impact assessment that identifies the impacts of the Plan on protected values; and
- A number of sub-plans that provide detailed guidance on the Plan’s implementation (e.g. assurance and implementation plan, conservation and offsets plan).
Following State and Commonwealth Ministerial endorsement of the Strategic Proposal (State) and Strategic Assessment (Commonwealth), proponents wishing to undertake future developments within the Kemerton SIA will do so through approval of a Derived Proposal under the EP Act and an approved ‘action’ under the EPBC Act in relation to their particular projects. The Strategic Proposal and Strategic Assessment outcomes will guide the environmental approvals for any future development.
How long does the environmental approvals process usually take?
The State and Commonwealth government environmental assessment processes may take up to two years to complete. This includes environmental scoping, impact assessment and responses to submissions and supplementary reporting.
Projects already approved that are located in the Kemerton SIA may still proceed whilst the Strategic Proposal and Strategic Assessment is underway.
How will the Buffer and surrounding environment be protected and managed?
The Strategic Proposal and Strategic Assessment will set out the conditions relating to any future developments to adequately protect matters of environmental significance. It is anticipated that the majority of the Buffer’s environmental values will be formally protected and enhanced over time as part of the offset plan.
Key measures to protect and manage environmental values include but are not limited to the following:
- Avoidance and retention of significant fauna habitat and vegetation communities within the Buffer
- Protection and enhancement of the Buffer through ongoing and continued mitigation, i.e., fencing, access restrictions and weed control
- Rehabilitation, restoration and/or enhancement of native vegetation and fauna habitat to increase environmental values of the KSIA and surrounds
- Considered placement of infrastructure corridors to minimise new disturbance where possible.
What studies have been undertaken to support the environmental approvals?
The KSIA Buffer and Industry Core have been subject to environmental investigations and studies since establishment in the 1980s, including in support of the 2017 Kemerton SIA Structure Plan. In recent times studies have focussed on consolidating knowledge with regard to key environmental values, including flora and vegetation and fauna. Studies to support the Strategic Assessment have been undertaken in accordance with current EPA and DCCEEW guidelines and in consultation with regulators. Key studies completed and/or in preparation include:
- Flora and Vegetation assessment of the Industry Core and Buffer, included targeted Threatened orchid studies in winter and spring – completed in 2019 and 2021
- Terrestrial Fauna assessment of the Industry Core and Buffer, included targeted Black Cockatoo, Western Ringtail Possum and Black-stripe Minnow surveys – completed in 2019, 2021 and 2022
- Overarching Water Management Plan – completed in 2018 and currently being updated.
Has there been any previous community consultation for Kemerton SIA?
The Kemerton SIA was established in 1985 to provide an area for downstream processing and value-adding to the South West region’s primary resources, especially its substantial mineral resources. DevelopmentWA (previously named LandCorp) has undertaken engagement with community and stakeholders on numerous occasions since then.
In 2007 the Kemerton Industrial Park (now Kemerton SIA) Strategy Plan was prepared. A Technical Advisory Group (TAG) including representatives of State Government agencies and the Shire of Harvey assisted in the preparation of the Strategy Plan. A community workshop was held in February 2007 to provide input into the Strategy Plan and stakeholder briefings were held. A four-month public comment period was also provided, with the public submissions informing the final Strategy Plan.
In 2015 – 2017 DevelopmentWA undertook further engagement with Government departments, utilities, elected officials, Councils, community and environmental groups in relation to planning scheme amendments to align the Local Planning Scheme and Greater Bunbury Region Scheme and the establishment of a formal Structure Plan, broadly in line with the previous Strategy Plan. The amendments and Structure Plan have been approved.
In 2018 a community engagement process was undertaken for the construction of a new section of road connecting Wellesley Road North to Marriot Road in accordance with the Structure Plan (Kemerton Road). There were no significant issues or concerns raised and the road is now complete.
In October and November 2021 there was a public comment period for the Kemerton Strategic Industrial Area (SIA)
DevelopmentWA proposed to develop the Kemerton Strategic Industrial Area (KSIA) for the purpose of industrial and infrastructure development as a strategic proposal. The Environmental Protection Authority (EPA) had a public comment period on whether or not the EPA should assess a proposal and, if so, what level of assessment is considered appropriate. The public comment period closed on 9th November 2021. To find out more, click here.
The Draft ESD for the Strategic Assessment was then available for a public review period of 4 weeks concurrently with the draft Terms of Reference from 29 August to 27 September 2022. To find out more, click here.
