Katherine’s new cotton gin promises jobs and a stronger economy

Katherine’s new $70m cotton gin officially opened this week. Read the benefits its expected to bring the town.

The first cotton gin in northern Australia was officially opened about 30km north of Katherine on Friday.

The estimated $70m WANT (Western Australia-Northern Territory) cotton gin is expected to provide dozens of jobs and stimulate the Katherine regional economy when processing begins next year.
Barrister, businessman and chair of Tipperary Group of Stations Allan Myers cut the ribbon to launch the new cotton gin, which is believed to be the first in the Northern Territory since the 1920s.

Allan Myers KC, AC cuts the ceremonial ribbon at the WANT cotton gin, Katherine. Picture: Pema Tamang Pakhrin

Developed exclusively with private money including venture capital, project principal David Connolly from the Tipperary Group said the gin would deliver a significant economic legacy through the additional jobs it will create.

“It will change the face of the Northern Territory,” Mr Connolly said. “We’re looking forward to providing cotton growers in the north with the best ginning services available.

“We’re looking to plant 15,000 hectares in the Northern Territory so we’ve gone past the ‘let’s look and see’ phase. We’re in it.”

The Territory is the country’s latest cotton precinct and the industry’s growth in the NT was acknowledged recently with the appointment of Tipperary’s Bruce Connolly on to Cotton Australia’s board.

Cotton is a $4.5bn industry nationally and every fibre of Australia’s high-quality crop is sold. Cotton Australia chief executive Adam Kay said that if every stitch of Australia’s annual cotton harvest was used to make shirts and jeans, it would clothe up to half-a-billion people.

Adam Kay speaks during the opening ceremony at the WANT cotton gin, Katherine. Picture: Pema Tamang Pakhrin

From 2025 it is expected to be competing with a new $60m gin under construction in Kununurra but before then its nearest competition is 2600km away in Emerald, central Queensland.

Mr Kay said one module, the plastic-wrapped cotton packages seen on the back of trucks driving through the NT, could make 1000 pairs of jeans.

Currently 4750 modules are waiting for processing.

“Just in the building of the gin the local contractors and businesses that were involved and it’s going to open up opportunities in the local area for workers at the gin,” he said.

“As the industry develops there’s going to be opportunity on farms so it will be a stimulus for Katherine town and community.”

Mike Kimball, project manager with the Northern Australia cotton gin, Katherine. Picture: Pema Tamang Pakhrin

Project manager Mike Kimball has built a number of gins including one in Argentina and said a large part of their function is to clean the cotton before production.

“Primarily the process is cleaning the cotton, removing all the plant material, removing the cotton seed and putting the cotton into a package that can be exported wherever it needs to be,” he said.

“It will make a huge difference to this area, allowing it to grow. We have the chicken and egg experience where the area’s not going to grow if you don’t have a cotton gin and a cotton gin’s not worth putting in if you don’t have the cotton to support it.

Cotton processing equipment at the new WANT cotton gin, Katherine. Picture: Pema Tamang Pakhrin

“This is going to be a huge game changer. It’s been needed for a long time and now we have one, it will make a big difference to this area.”

Farmer usage will determine how many months each year the gin is producing bails and the benefits for them aren’t just cotton-generated income, but the protein delivered for cattle by feeding them cotton seeds. Every tonne of cotton generates an equal weight of seeds.

After the ceremonial ribbon cutting, Allan Myers proposed a toast to the gin’s challenges and benefits as champagne flutes were handed out to guests.

“Let me tell you this is the most expensive glass of champagne you will ever drink or ever see,” he joked.

“This gin will be a great and enduring public benefit to the people of the Northern Territory.”

About 150 people attended the opening with Department of Industry, Tourism and Trade chief executive Shaun Drabsch representing the government and Shadow Minister for Agribusiness Josh Burgoyne and Member for Katherine Jo Hersey the CLP.