KIMBERLEY Cotton Company has approved the commencement of construction of the cotton gin at Kununurra in Western Australia, with operation planned to commence in the second half of 2025.
Namoi Cotton holds a 20 percent interest in KCC, and has been contracted by KCC to build and operate the cotton gin.
KCC has been established by local growers to construct and manage the cotton gin.
This project is supported by $34 million in non–recourse debt from the Federal Government’s Northern Australia Infrastructure Facility, $9M from the WA Government, and cotton supply agreements with growers.The new cotton gin will have the capacity to service the forecast production of 100,000-150,000 cotton
bales in the Ord River irrigation area.
bales in the Ord River irrigation area.
KCC has obtained development approvals and selected preferred contractors for approximately 65pc of
the budgeted construction cost of around $60M, which includes an additional $6M in construction
cost for a variation in scope to meet local air and noise requirements.
the budgeted construction cost of around $60M, which includes an additional $6M in construction
cost for a variation in scope to meet local air and noise requirements.
To fund construction of the cotton gin, KCC is raising an additional $7M in equity comprising
convertible notes and shares, and its board is confident this can be raised from existing and if required, new shareholders.
convertible notes and shares, and its board is confident this can be raised from existing and if required, new shareholders.
Namoi Cotton intends to contribute $1.4M to this additional capital raising to maintain its 20pc
interest in KCC and Board representation, increasing its investment in KCC to $4.2M.
interest in KCC and Board representation, increasing its investment in KCC to $4.2M.
As previously announced, Namoi Cotton’s total investment in KCC and cotton gin project is expected to be approximately $7M.
Namoi Cotton is Australia’s largest ginner, and its involvement in the Kimberley project is in line with its 4PP Strategy to grow and diversify its ginning footprint into northern Australia.
Source: Namoi Cotton
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