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Kalgoorlie restaurant owner Bing Xia faces court over $1 million cannabis operation at Wheatbelt farm

Million-dollar commercial cannabis operation at a rural Wheatbelt property. (Supplied: WA Police)

A 38-year-old Kalgoorlie restaurant owner accused of masterminding a million-dollar commercial cannabis operation at a rural property in Western Australia's Wheatbelt has been granted bail, despite being considered a "flight risk" by police.

WA Police arrested five men aged 49, 47, 43, 30, and 28 after raiding a Kokeby farm on January 5 where they seized 2,023 plants and 132 kilograms of cannabis with an estimated street value of more than $1 million.

Former Chinese national Bing Xia, who opened Kalgoorlie restaurant Kyoto House last year, was subsequently arrested after police say they identified him as the property owner.

Police prosecutor, Senior Constable Michelle Heales, opposed bail, telling the court there was "significant evidence" of Mr Xia's involvement in the operation.

She told the court Mr Xia purchased the Kokeby property in May last year and that police have council documents showing he paid rates.

She said Mr Xia was renting the property to a man he allegedly met on an encrypted platform for about $4,000 a month.

"The encrypted messages discuss the location and say that it was perfect to remain undetected," she said.

Mr Xia is due to reappear in the Kalgoorlie Magistrate's Court on February 23.  (ABC Goldfields: Jarrod Lucas)

Senior Constable Heales told the court police considered Mr Xia a "flight risk" with significant business interests in Tasmania.

She said he also frequents Victoria where she said he had links to an "established criminal network".

"Investigators are working through messages, which are in another language, using an interpreter," she said.

It is alleged Mr Xia purchased six large water tanks, six large greenhouses, and a large generator at a cost of about $100,000 for the cultivation operation.

Senior Constable Heales told the court Mr Xia kept a detailed diary which included sketches and measurements for the greenhouses, as well as a business plan with the "items required".

She said the cannabis operation was identified near a state forest by a member of the public who was flying a glider overhead.

Mr Xia had told police during an interview that he intended to use the property for a hobby farm "growing mushrooms and tomatoes", Senior Constable Heales said.

He is yet to enter pleas to the charges of cultivating a prohibited plant with intent to sell and supply, and possession of prohibited drugs with intent to sell and supply.

The cannabis seized had an estimated value of more than $1 million.   (Supplied: WA Police)

Jail likely if convicted

Mr Xia's lawyer Paul Holmes told the court his client did not dispute the fact that he owns the property and would likely take the matter to trial.

He told the court Mr Xia has been an Australian citizen since 2012, has no prior criminal record, and had spent about $200,000 on the fit-out of his Kalgoorlie restaurant where he is head chef and employs seven people.

Mr Holmes relied on the presumption of innocence and a willingness to comply with strict bail conditions as part of Mr Xia's application to be released from Eastern Goldfields Regional Prison.

"The case against the co-accused is substantially stronger than my client," he said.

Magistrate Matthew Holgate granted bail on strict conditions, but told Mr Xia a lengthy term of imprisonment was likely if he is convicted.

"It is an exercise for me to determine whether these conditions are enough to reduce the risk of flight," he said.

"There is always some risk with bail conditions.

"I also need to consider the time spent in custody if not granted bail.

"The reality is you are unlikely to face trial before the end of 2024 … and that might be an optimistic view with numerous adjournments along the way."

Mr Xia's bail conditions require him to surrender all passports, report every day to Kalgoorlie Police Station, and not contact any of his co-accused by any means.

He is not allowed to use an electronic device capable of encrypted communication and must provide any access codes to police.

He cannot travel outside a 50-kilometre radius of Kalgoorlie-Boulder, must not leave Western Australia, nor go within 500 metres of any international points of departure.

Mr Xia is due back in court on February 23.

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