Kimberley Cotton Gin Project
NAIF’s loan of up to $34 million supported the construction of the Kimberley Cotton Gin in Kununurra, the first facility of its kind in Western Australia. The project enables local processing of the region’s cotton, reduces transport costs, creates jobs and supports the growth of a new agricultural industry in northern Australia.
August 2021
Agriculture & Water
Kununurra, WA
NAIF has supported the establishment of Western Australia’s first commercial-scale cotton processing facility with a loan of up to $34 million to the Kimberley Cotton Company (KCC).
The Kimberley Cotton Gin, officially opened in Kununurra in August 2025, is now processing locally grown cotton, allowing it to be processed in the region rather than being sent more than 3,500 kilometres interstate.
Proponent Background
In April 2021, the Kimberley Cotton Company was formed as a partnership between the Ord River District Cooperative, Kimberley Agricultural Investment, and Miriuwung Gajerrong Corporation.
The company was established to lead the construction and operation of a Kununurra cotton processing facility that will make cotton an economically feasible broadacre crop in the region.
Project Overview
The Kimberley Cotton Gin is located in the Ord River Irrigation Area, in the East Kimberley region. This state-of-the-art facility includes a two-stand gin module, ancillary infrastructure and storage, enabling cotton from the Ord Valley and surrounding regions to be processed locally.
The project includes the construction of storage sheds for bales and seeds, office buildings, weighbridges, mobile plant equipment, access roads and a crane, with the facility designed to allow expansion to a four-stand gin in the future.
The project unlocks significant agricultural potential by:
- Supporting the WA Government’s plan to expand the Ord River Irrigation Area from 28,000 to 50,000 hectares by 2034.
- Removing transport costs and related emissions associated with sending unprocessed cotton interstate.
- Enabling growers to access premium international cotton markets by improving efficiency and supply chain resilience.
Construction began in 2023 and was completed in August 2025.
How We Helped
We acted as a gap financier, bridging the shortfall between shareholder contributions and commercially available finance. NAIF:
- De-risked the project for other investors and stakeholders, ensuring construction could proceed without delay.
- Can accept a higher risk than commercial lenders, making it possible for KCC to utilise the released capital to develop land for cotton growth, a crucial aspect contributing to the project's success.
- Crowded in private investment by signalling strong government-backed support for the Kimberley cotton industry.
- Brought forward the development of a critical piece of enabling infrastructure that may not have been built in the short-term without NAIF’s involvement.
The role NAIF played was instrumental in establishing a new cotton-growing industry in northern Australia, estimated to be worth $925 million, diversifying the Kimberley economy and creating sustainable, long-term employment.
Public Benefit
Independent analysis forecasts that the Kimberley Cotton Gin will generate up to $248 million in public benefits over 20 years. Benefits include:
- 61 jobs in total with 30 direct jobs during construction, up to 31 direct ongoing jobs when operational, as well as many indirect business and employment opportunities.
- Reduced freight costs and lower carbon emissions by processing cotton locally.
- A boost to regional incomes and increased business opportunities for local suppliers.
- Enhanced competitiveness of Australian cotton in global markets.
- Complement local agriculture by providing cotton seeds for cattle feed, upgrading common power infrastructure, and reducing interstate travel, helping improve biosecurity for the region.
This cotton gin is a substantial investment; however it is only the beginning of the development opportunities in the region. KCCL looks forward to continuing its partnership with NAIF and a future of growth that will have generational benefits for northern Australia.
Jim Engelke
Chair, Kimberley Cotton Company
Related Links
Indigenous Engagement
- The Miriuwung Gajerrong People
Kununurra, located on Miriuwung and Gajerrong Country in Western Australia’s East Kimberley, is home to the Miriuwung Gajerrong Corporation (MG Corporation), which was established under the Ord Final Agreement to manage native title benefits and support the cultural, social and economic aspirations of the MG people. Country is ecologically diverse, encompassing mangrove flats, river systems, grassy plains, savannah woodlands, deep gorges, and limestone outcrops. MG Corporation leads a range of initiatives that span agriculture, renewable energy, property development and social programs, all while protecting cultural heritage and managing country sustainably. Key projects include the Kimberley Cotton Gin, a major agricultural investment; the East Kimberley Clean Energy Project, aiming to deliver Australia's first 100% renewable hydrogen and ammonia facility; and property development throughout the region. Socially, MG Corporation delivers targeted programs such as Home Stretch, Target 120, and a Youth Night Patrol, each designed to improve outcomes for Aboriginal people and support the wellbeing of youth, families and the broader community.
Indigenous Engagement Strategy Commitments
- Develop and maintain a preferred First Nations supplier list, notify First Nations businesses of tender opportunities, ensure fair payment terms, and report on the number and value of contracts awarded to First Nations businesses.
- Committed to a 10% First Nations employment during construction and operations, prioritise local First Nations candidates, provide traineeships, and work with MG Corporation and service providers to build a skilled, inclusive workforce.
- Committed to engage Traditional Owners through MG Corporation, building competency through training delivered by Mirima Dawang Woorlab-gerring (MDWg) and communication of project impacts and benefits through culturally appropriate channels.
- KCC will review its Indigenous Engagement Strategy outcomes with input from MG Corp and report on its achievement of employment targets, Indigenous business spending and other undertakings.
Indigenous Engagement Strategy Outcomes
- In 2024, MG Corporation continued representation on the KCC Board, and the project reported a procurement spend of over $67,000 towards First Nations businesses, as well as employing 7 First Nations staff through other contracts.
