ENVIRONMENTAL assessments have begun to pave the way for a $300 million grain refinery to be built west of Tamworth.
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Tamworth mayor Col Murray met representatives from the developers, Primary Food Company, yesterday on the proposed site at Goddard Ln to discuss the project.
If it goes ahead, the refinery will process up to 500,000 tonnes of predominantly locally sourced wheat and sorghum into a range of food ingredients, including bran, protein, human food and animal food, as well as industrial products for use domestically and internationally.
It was suggested the project would require $300 million in capital investment, could generate up to 500 jobs during construction and would result in 75 direct full-time jobs.
The proposed facility will be built on a 12-hectare site near the old Tamworth Regional Saleyards complex on Goddard Ln.
The project is a reinvented and re-energised one, once known as Primary Energy and mooted by CEO Matthew Kelley for an ethanol plant at Gunnedah, but now re-focused as primarily a food plant, with the waste streams used to produce ethanol.
Cr Murray said yesterday the council had been working and involved in discussions with the Primary Food Company for about 18 months.
“We have been working with them to do our best to help facilitate what we believe can only be a great outcome for the community, in terms of the development of the project,” he said.
Cr Murray said the multi-million-dollar development was “hugely significant” for Tamworth and the wider region.
“When functioning it will use about 400 tonnes of wheat and 100 tonnes of sorghum, making it the second-largest grain user in Australia,” he said.
The council was involved in talks with Deputy Premier Andrew Stoner in Sydney last week and it is understood he expressed his support for the project.
Cr Murray said he understood Primary Food Company had had a different life in the past.
“In previous years the company, as I understand, had a completely different business model and was involved when there were talks of an ethanol plant in Gunnedah many moons ago,” he said.
“Effectively now, though, the company runs on an entirely different business plan and that’s what resulted in this idea, of coming to Tamworth.”
Cr Murray said the move to Tamworth showed the company had great faith in the city’s business community.
“It’s a big coup,” he said.
“They could have taken this anywhere there is gas, but they chose here and that could result in arguably one of the largest developments in the city and the wider region in some time.”
Primary Food director Mark Martin said a key driver for the project was the increasing demand for food and food ingredients.
“With a rapidly growing global population and middle class, food ingredient facilities are becoming key infrastructure assets for future food security,” Mr Martin said.
He said the company saw the project as creating a major new domestic market for locally grown grains and would focus on food production, with a secondary focus on ethanol for the beverage and industrial markets.
“As well as supporting local growers, the facility will provide cost-effective livestock feed, proteins and starches , as well as a range of other high-quality products for food, agriculture and commercial markets,” he said.
While the finer details are still being finalised, Umwelt has been engaged to do the environmental assessment, and Richard Crookes Constructions is working with Primary Foods on the delivery of the project.
Project manager for Richard Crookes, Luke Gerathy, said subject to relevant approvals being in place it was hoped ground would be broken on the project later this year, with construction expected to take a further two years.
Mr Martin said Primary Foods would consult and hold discussions with the government, Tamworth Regional Council, industry groups, the community and others with an interest in the proposal.