Three medicinal cannabis cultivation and production facilities in Victoria and South Australia have received major project status from the Federal Government 3 February 2020.

While the Australian Federal Govt whinges about people growing a few (4 maximum) plants in the ACT, they are happy to give “major project status” to corporate cannabis growers who are “expected” to create thousands of jobs and “intend(s)” to produce high quality, pharmaceutical grade medicinal cannabis ingredients. According to the press releases Business Australia are reporting from in their story (see below govt press release)
 
Also, we wonder if any ministers have shareholding interests in any of the companies given Major Project Status. It’s not an unreasonable question to ask after the sports rort scandal.

Federal Minister for Industry, Science and Technology Karen Andrews says the projects will be a boost for Australia’s medicinal cannabis industry.
She of course hasn’t been watching the downward trajectory of the sector in the US and like any other interaction the current Australian government undertakes they head for the big end of town and then pray that it doesn’t end in disaster.
The problem with this government is that everything currently ends in disaster.
Buyer beware we say
 
Here is her department’s full press release

Medicinal cannabis projects drive job creation

3 February 2020
Three medicinal cannabis facilities expected to create thousands of jobs in Victoria and South Australia have been granted Major Project Status by the Morrison Government.
Minister for Industry, Science and Technology Karen Andrews said the projects would help Australia continue to develop its medicinal cannabis industry.
“When you combine our world-renowned agriculture sector, with our trusted reputation for medical products, Australia is in a unique position to dominate the global medicinal cannabis industry,” Minister Andrews said.
“The Morrison Government is committed to making it as easy as possible for businesses to maximise those opportunities because we know these projects equal Aussies jobs.
“Each of these projects will also drive economic growth, including in regional areas.”
LeafCann is a biotech company which plans to produce high quality, pharmaceutical grade medicinal cannabis ingredients and medicines in Adelaide, South Australia as part of a $350 million investment.
When its state-of-the-art cultivation and production facility is fully operational it is expected to generate more than 1400 jobs, in addition to 850 during development.
Other projects include:

PhytoGro’s $140 million medicinal cannabis cultivation and medical device manufacturing facility in Melbourne’s inner west which is estimated to create around 300 new ongoing jobs at full capacity.

Cannatrek’s $160 million medicinal cannabis cultivation and manufacturing facility in Victoria’s Goulburn Valley region is expected to create 400 full time positions at full capacity.

Last year it was announced medicinal cannabis licence applications for projects granted Major Project Status were being prioritised within the Office of Drug Control’s licencing process.
Six medicinal cannabis projects have been given such status since then.
Major Project Status is the Commonwealth Government’s recognition of the strategic significance of a project to Australia. It provides companies with extra support from the Major Projects Facilitation Agency, including a single entry point for Commonwealth Government approvals, project support and coordination, and help with state and territory approvals.
For more information on the Major Projects Facilitation Agency and the full list of current major projects, visit www.mpaa.gov.au.

Source: https://www.minister.industry.gov.au/ministers/karenandrews/media-releases/medicinal-cannabis-projects-drive-job-creation

 
Just so we all know; this is how Major Project Status is defined by the Australian Federal Government at
https://www.business.gov.au/Grants-and-Programs/Major-Project-Status
 

Major Project Status

Major Project Status formally recognises the significance of a project to the Australian economy. If your project is recognised you’ll get extra support and coordinated approvals. Find out if your project is eligible and how to apply for Major Project Status.

Application detail: You can apply at any time.

What do you get?

A single entry point for Commonwealth Government approvals
Project support and coordination
Help with state and territory approvals

Who is this for?

Developers with projects over $50 million and of strategic significance to Australia.

 

Overview

Major Project Status is the Australian Government’s recognition of the national significance of a project – for economic growth, employment or for regional Australia.
If your project gets Major Project Status, you’ll get extra support from the Major Projects Facilitation Agency (MPFA). This includes help with coordination and facilitation of Commonwealth Government approvals. Your project may need a range of approvals such as environmental, biosecurity or foreign investment approvals.
Most projects have Major Project Status for 3 years. We’d normally expect you to complete the approvals process in the 3 years.

 

What are the eligibility criteria?

For full details of the Major Project Status eligibility criteria, contact the MPFA.
Your project needs to meet the following criteria.
1. The project is of strategic significance to Australia
The project’s estimated investment must be more than $50 million.
It must either:
contribute significantly to economic growth, exports, employment and/or infrastructure development
have an economic benefit to regional Australia, considering a region’s investment needs
Major project developers need to be able to provide details of:
major elements of total capital expenditure
major capital equipment items
cost estimates from feasibility studies
employment numbers for different phases of the project
2. The project requires Commonwealth Government approvals or involvement
The project requires either:
approvals under Commonwealth Government legislation
significant Commonwealth Government involvement, including through government programs
Commonwealth Government approvals may include:
environment and heritage approvals
customs and biosecurity approvals
approvals under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (and related Acts)
foreign investment approval
import tariff concessions
Government programs may include:
employment and training programs
immigration programs
3. The project has sufficient financial resources and is commercially viable
Developers need to show that the project has attracted enough funding, at least enough to complete the approval processes.
You’ll need evidence of adequate funding and support such as:
evidence of support from governments and communities
resolutions of support from the board of a parent company
a letter of support from a parent company or investor
letters of intent, heads of agreement or other commercial documents, offtake and supply agreements, audited company accounts
feasibility studies, business case or financial viability assessments

 
The Business News Australia report….
Medicinal cannabis facilities receive major project status

Three medicinal cannabis cultivation and production facilities in Victoria and South Australia have received major project status from the Federal Government today.
The projects, run by medicinal cannabis companies LeafCann, Cannatrek and PhytoGro are expected to create thousands of jobs in the two states and boost the country’s medicinal cannabis cultivation capacity.
The largest of the three is a production facility in Adelaide’s southern suburbs run by LeafCann worth $350 million.
The biotech company intends to produce high quality, pharmaceutical grade medicinal cannabis ingredients and medicines in Adelaide.
When the production facility is fully operational LeafCann expects to generate more than 1400 jobs, in addition to 850 created during development.
PhytoGro’s operations will be conducted in Melbourne’s inner west and will see the company’s $140 million operation cultivate the drug and manufacture medical devices.
The company expects to create an estimated 300 new jobs when the facility is at full capacity.
Finally, Cannatrek will construct a medicinal cannabis cultivation and manufacturing facility in Victoria’s Goulburn Valley region worth $160 million.
The facility is expected to create 400 new full-time jobs once complete.
Federal Minister for Industry, Science and Technology Karen Andrews says the projects will be a boost for Australia’s medicinal cannabis industry.
“When you combine our world-renowned agriculture sector, with our trusted reputation for medical products, Australia is in a unique position to dominate the global medicinal cannabis industry,” says Andrews.
“Each of these projects will also drive economic growth, including in regional areas.”
Since the government announced it would prioritise applications for medicinal cannabis companies looking to receive major project status in 2019 six projects have received such status since then.
Source https://www.businessnewsaus.com.au/articles/medicinal-cannabis-facilities-receive-major-project-status.html


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