WA economic diversification: Pressure on state development reforms amid slow progress on lead agency projects

Just 13 of 45 projects given priority status by the WA Government have entered construction in new figures that will add pressure on looming State development reforms to deliver a better result. But Premier Roger Cook has pledged his “bold” overhaul will hit the mark by focusing attention on the most significant projects and ensuring they succeed. The red-tape busting lead agency framework was touted by former premier Mark McGowan in 2021 as a crucial pathway so that regulation did not become a “labyrinth (of) obstacles to getting anything done”. Yet only six projects handed the special label have finished construction and a further seven are under way. Many have been paused or are yet to get off the ground, sparking questions as to how thoroughly more ambitious projects are scrutinised before being allocated already strained Government resources. It comes weeks after Mr Cook announced the “biggest reforms to the State development framework since 1952” including plans to give a coordinator general power to whip regulators into shape and get major investments moving. The Premier’s office has assured “only a small number of projects” would be selected for priority status under the new rules, and they would be “consistent with the objects of the Bill and recommended by the Coordinator General”. “The Bill will give the State Government additional powers necessary to secure investment in major clean energy and defence manufacturing projects which will have the ability to transform WA’s economy in the years ahead,” a spokesman for the Premier told The West Australian. “Western Australians can be confident these strategically significant projects will receive the focused attention needed to succeed.” He said the lead agency framework would still remain the “front door” for project support once the State development shake-up, as revealed earlier this month, passes Parliament. The Cook Government has also promised to preserve existing Aboriginal heritage and independent Environmental Protection Authority safeguards. Projects on the lead agency list have needed about eight years to reach commissioning stage and some were slowed by global economic conditions or other factors. A similar framework under the previous Liberal government also had mixed results. Sparking debate Greens leader Brad Pettitt said the lead agency rules and State development reforms were not fixing fundamental problems. “The fact we’ve got the State development Bill shows the lead agency framework hasn’t worked as well as intended,” he told The West Australian. “Can I be brutal and say I suspect this Bill is going to have the same outcome.” He said there was widespread support for efficient decision making but warned the issue was less about red tape and more about agencies such as Western Power and the Environmental Protection Authority being under-resourced. Dr Pettitt pointed to renewable energy projects as an example, and said delays in securing access to the grid were bigger problems than red tape. Yet business groups are hoping the State development revamp can cut through the inertia. Kwinana Industry Council boss David Harrison said there was a critical need to “remove the shackles” and make WA a more competitive place to invest. “We have got to fast track, streamline and remove duplication from the approvals processes for places like Kwinana,” he said. “If we want to be serious about attracting new projects to the State, diversifying our economy, growing jobs, and supporting existing operators to be more competitive, then it’s this type of law that needs to be backed.” He called on the Government to make the Western Trade Coast — the industrial zone through Kwinana and Rockingham — the first region designated a State Development Area under the laws, which would prioritise local investment. Agents of change Plans for green hydrogen projects through to “critical minerals” mines have been brought into the Lead Agency pipeline but to varying degrees of success. Among the successful builds are Mineral Resources’ new Onslow Iron mine and Lynas Rare Earths Kalgoorlie processing facility, which were both up and running in 2024. Wesfarmers subsidiary Covalent started producing lithium hydroxide in July, with the product sourced from the new Mt Holland mine it jointly owns with Chile’s SQM. Construction is more than 60 per cent done at Perdaman’s fertiliser plant on the Burrup Peninsula. An anticipated yearly urea output of 2 million tonnes would make it the largest fertiliser development in the country and a big diversifier for WA. However most of the proposals receiving lead agency support are still stuck in the planning phase or have been scrapped entirely. Some of the ill-fated projects include Perth-based Infinite Green Energy and its blueprints for a proposed export-scale hydrogen build. The company plunged into administration in April and new owners reckon the project will be pushed back. German chemical giant K+S canned plans for a long-delayed $850 million salt mine in June. Other lead agency projects that have not started construction but are making progress include Chalice Mining’s Julimar palladium-nickel-copper development near Toodyay. That is expected to deliver a pre-feasibility study by November. Posco’s proposed green iron plant in Port Hedland won Environmental Protection Authority recommendation in August. Meanwhile the Forrest empire’s Wyloo and Hastings Technology Metals are working to secure further funds for their Yangibana rare earths project, due to start production in 2027.