A venture backed by corporate WA heavyweights to transform fire-ravaged bush into cash could soon be the fourth largest landholder in the State, according to its chairman, after reaching an agreement with traditional owners.
Salubris and the Marlinyu Ghoorlie have entered a partnership which will give the WA-based carbon credit business access to the Indigenous group’s native title claim that covers of nine million hectares of Goldfields land.
Salubris’ is regenerating vast swathes of forest razed by bushfires in the Great Western Woodlands and protecting the land from future destruction. By doing so the company receives carbon credits from the government, which it then sells to miners looking to offset their carbon emissions footprint.
The carbon credit revenue will be split 50/50 with the Marlinyu Ghoorlie and Salubris is also in the process of adding three pastoral stations to its portfolio.
Backers of Salubris include mining rich-lister Bill Beament, Bellevue Gold boss Darren Stralow, Gilbert + Tobin partner Michael Blakiston, former Nationals WA chief Brendon Grylls and Argonaut boss Eddie Rigg.
“The purchase of (the) stations plus the deal with MG would make us the fourth largest landholder in WA behind the likes of Twiggy, Gina Rinehart and BHP,” Mr Rigg, who also serves as the chairman of Salubris, told The West Australian.
“We have evidence that approximately 20 million tonnes of biomass has been burnt in the area in the last 20 years, this not only reduces stores of Co2 but negatively impacts on the biodiversity value of the Great Western Woodlands.”
Mr Rigg says the Clean Energy Regulator grants the credits, which includes a “rigorous” audit process to prove the land is returning to forest, including the new trees having to be over two metres tall.
Salubris was planning to list on the ASX later this year in a float valued at around $50 million, but has now decided to stay private.
“Core to our business is building deep and lasting relationships with traditional owners which we feel is better done in a private ownership setting rather than in a public markets environment,” Mr Rigg said.
Mr Grylls, who is an executive director of Salubris, told The West the company is targeting an injection of capital within the next six months.