WA backing large projects to buck job loss trend

Western Australia will receive a much-needed boost to its job market this year, with 1500 jobs to be created during the construction of a $3.5 billion urea plant in the state's south-west town of Collie.

Perdaman, led by Indian businessman Vikas Rambal, a former managing director of Pankaj Oswal's Burrup Fertilisers, plans to start exporting fertiliser from Collie by mid-2013.

The plant will convert coal gas into urea, the world's most commonly traded nitrogen-based fertiliser.

The project is expected to generate about 1500 jobs during its three-year construction stage and 200 permanent jobs when operational.

"There will be many more indirect jobs created around this industry," Premier Colin Barnett told Fairfax Radio.

"It's just all good news.

"Western Australia is going against the trend here. You know the rest of Australia is sort of talking itself into recession; Western Australia is not going to allow that to happen.

"I'm not denying there will be job losses and some industries will face a tough time, probably a lot of small businesses might struggle to get through, but the big projects that drive this state we'll keep on pushing," he said.

The plant will consume about 2.7 million tonnes of coal annually from Griffin Coal's nearby mine during a 25-year contract between the two privately owned enterprises.

It will have to pass full environmental approval processes but it "is not a serious environmental issue", Barnett said.

WA has several large projects on the horizon, including the Gorgon gas project off WA's north-west and the development of the Oakajee port and rail system in the mid-west. Barnett said these large projects are what the state needs to buck the current job loss trend.

"That's [Oakajee] the most important new project in Australia, absolutely critical," Barnett said.

"We can get through this recession if West Australians keep positive and keep pushing these projects and all the jobs and all the other business opportunities that flow from them," he said.

Perdaman is considering supplying a small amount of urea to local markets, but the majority would be exported for agricultural use.

The plant is expected to generate more than $850 million in annual export earnings for the state.