THE Ord River irrigation scheme will more than double in size after the State Government announced plans to release more than 15,200 hectares of irrigatable agricultural land near Kununurra.
The Ord-East Kimberley Expansion Project is set to boost agriculture and jobs in the region, with expressions of interest being sought from both international and national stakeholders.
China and Malaysia are among the countries who have shown significant interest in purchasing swathes of the land as they face the growing issue of food security.
The existing irrigation area comprises 14,000ha, growing crops including cotton, rice, chia, sorghum, pumpkins, melons, mangoes and sandalwood.
The land release includes 17 farm blocks in the 7400ha Goomig Farm Area and 7800ha of undeveloped land, divided into two parcels known as Knox Plans and the Ord West Bank.
Premier Colin Barnett said the highly anticipated release on the large-scale, nation building endeavour would help create stronger, more vibrant and sustainable regional communities in the East Kimberley.
"Significant investment and hard work from both the State and Federal governments and a range of stakeholders has now borne fruit, further cementing the Ord River irrigation area's reputation as a world-class agricultural precinct," Mr Barnett said.
"This release of land in the Goomig Farm Area, Knox Plain and Ord West Bank more than doubles the size of the existing irrigation area and provides opportunities for short, medium and long-term agricultural land development for a variety of crops."
The expansion is likely to create up to 400 new jobs in Kununurra and the East Kimberley.
Regional Development and Lands Minister Brendon Grylls said the area was already attracting significant interest and the new land release would help draw private sector investment into the growing region.
"The multiple land release will draw both national and international attention from purchasers looking to benefit from the Ord's reliable water supply, productive soils and ideal growing climate," Mr Grylls said.
"I would like to acknowledge the contribution of the Miriuwung Gajerrong people, whose signing of the Ord Final Agreement and ongoing commitment to the project has made this land release a reality."
Mr Grylls said several delegations from China and Malaysia had already visited the region and were expected to submit expressions of interest.
"This shows that food security is an issue that they are looking to address," he said.
He acknowledged concern within the community towards foreign investors buying up Australia's agricultural land and said this would be taken into consideration.
"It is going to be a complex decision-making process for the Government, the community are concerned and they want more information," he said.
The latest land release is likely to see the expansion of sugar cane production, with a focus on producing ethanol.
A 2008 State Government-funded study found ethanol production from sugar cane in the Ord River region could be competitive with ethanol from grain in the south of the State.
The report concluded that with an upgrade of the throughput of the existing sugar mill to 1.1 million tonne of cane, ethanol could be produced from molasses associated with sugar production at an ex-refinery cost of around 50 cents per litre or 56 cents delivered to a capital city.
China is understood to be particularly interested in the potential for ethanol production from sugar cane.
Major corporate farming interests and grower groups such as the Australian Banana Growers Association have also expressed interest.
The land on offer is a mixture of both developed and non-developed land. Lake Argyle supplies water to the Ord River irrigation area, holding 10,763 gigalitres of water at full supply level.
Expressions of interest for the Knox Plain and Ord West Bank land and requests for proposal for the Goomig Farm Area close in February 2012.