Prawn wars: The $1.5 billion Project Sea Dragon and the push to stop it
Queensland-based Seafarms Group has recommitted to a $1.5 billion prawn project called Project Sea Dragon and started fund raising negotiations despite legal action trying to stop it.
Project Sea Dragon would include 10ha of production ponds (Pic: CSIRO)
Chief executive Rod Dyer said the project, which involves prawn hatcheries, growing facilities and processing centres in the NT and Western Australia, had financial modelling that was “sufficiently complete” and other data, including the a revised business case, was well progressed.
However, the project has a court case hanging over it from contractor Canstruct which has been seeking to liquidate the project and in February Project Sea Dragon was put into voluntary administration. A subsequent deed of company arrangement was meant to discharge the claims by Canstruct, including the $13.9m that was payable.
Then in April, Canstruct lodged applications for liquidators to be appointed to Project Sea Dragon. Dyer said the court action was an “unwarranted distraction” but would not prevent the company from progressing its funding, nor its final investment decision.
However, that was not the only problem for Project Sea Dragon which had the aim of producing year-round prawns for the export market with 10ha prawn production ponds.
A project review in 2022 identified some key risks, but Dyer said this was addressed through a new assessment.
“This assessment found there were no technical reasons why Project Sea Dragon should not proceed and that we are now progressing financial and business case modelling for the project as the next step in determining the future of the project,” Dyer said on Wednesday.
Those “key risks” related to the 10ha ponds “and the absence of finance which Dyer said had been addressed.
“We have taken these concerns seriously and have re-evaluated all aspects of the project,” Dyer said.
“The board is now pleased to advise that we are re-engaging with previous and new funders as well as debt providers for the future funding requirements of Project Sea Dragon.
“The board will assess the updated business case and funding arrangements before making a final investment decision for PSD.”
Dyer said the company had all the approvals needed for the first stage of the project which would enable 15,000 tonnes of product a year.
SeaFarms also owns the north Queensland Crystal Bay Prawns.
