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Newcastle Herald
Newcastle Herald
Matthew Kelly

New industrial dawn: defence, transport and energy projects slated for region

Major defence, transport, energy and fabrication industries have been slated to be established in the Upper Hunter as part of government plans to transform the region's economy.

Industry, Science and Innovation Minister Tim Ayres led a delegation of senior government officials on a visit to Muswellbrook last week to investigate opportunities for investment as part of the Future Made in Australia program.

Mount Arthur Coal, which is the subject of a master planning process that will allow the land to be used for future industries, was among the sites visited.

"I wanted them to see the scale of the opportunities that exist in the Hunter Valley," Mr Ayres said.

"This is one of the initiatives that I have introduced to get people working across government to achieve these industrial objectives.

"I want to be careful about the delivery of blue-collar jobs projects in the regions, and the Hunter is critical for us achieving our reindustrialisation objectives."

The Department of Industry, Science and Resources, the Australian Trade and Investment Commission, the Anti-Dumping Commission, the Australian Renewable Energy Agency and the departments of finance, treasury, defence and infrastructure were among the groups represented.

An artist's impression of a new industrial complex in the Upper Hunter.

The visit came a week after the federal and state governments announced a $2.5 billion power purchase agreement to ensure the sustainability of Tomago Aluminium.

It also followed recent major Future Made in Australia investments in rail manufacturing, the future of Orica's Kooragang Island plant, and the Kongsberg Missile Factory at Williamtown.

Mr Ayres said he was keen to see as many prospective industrial projects reach a final investment decision as soon as possible to keep the region's transformation moving forward.

It is a strong economy that has got real capabilities and real advantages," Mr Ayres said.

"I want to see the government putting its shoulder behind the wheel here to deliver industrial investment today and industrial investment in the future to sustain the economy for decades to come."

Mr Ayres welcomed the emergence of the data centre boom in the Hunter, arguing that it would work as a catalyst for other investments.

Akaysha Energy has a $10 billion proposal for a battery project that will complement a future data centre project at Muswellbrook while AirLocker plans to build a $5 billion data centre at the former aluminium smelter at Kurri.

"I see this as a real opportunity to provide anchor tenants for future industrial development," Mr Ayres said.

"It's not one or the other. This is a good development with cashed-up data center investors to deliver digital infrastructure. It's just the speed of the move.

"It's going to help us make industrial investments more commercial."

It's a good outcome for the Hunter, and it's a real competitive advantage for the Hunter Valley.

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