A new review of plans to build the world's largest prawn farm in the remote Northern Territory has found "there is no technical reason why the project should not proceed" — a completely different assessment than the result of a review in March.
The latest review, presented at Seafarms' annual general meeting this week, is a stark contrast to a review of the project handed down by previous CEO Mick McMahon in March.
That appraisal found the project would "not generate acceptable financial returns" and involved "unacceptable risk" such as biosecurity, environmental conditions, remoteness, and grow-out ponds that were "unproven in Australia" in terms of their size.
Seafarms' share price crashed 42 per cent on the day that appraisal was released, with Mr McMahon apologising to shareholders for the frank information he presented.
Mr McMahon resigned several weeks later, following the announcement by the company's biggest shareholder that it would try to remove him as a director of the company.
Rod Dyer was appointed CEO in May, and in June the company launched a new assessment of the key challenges for Project Sea Dragon.
Second review finds challenges can be overcome
The latest assessment of Project Sea Dragon "validated the effectiveness of large-scale prawn farms, hatcheries and packing and importantly the viability of 10-hectare ponds", according to an ASX announcement.
"After visiting overseas operations, the company believes that the previously identified technical risks can be managed," Mr Dyer said.
Seafarms told the ASX it had inspected a prawn farm in Ecuador that had ponds up to 19 hectares in size.
"Our assessment of these farms left us with no doubt that Seafarms could successfully operate 10-hectare ponds with our projected biomass and yield performance," the statement said.
The March review of Project Sea Dragon found the remote location of the farm — 900 kilometres south-west of Darwin — presented many logistical and economic challenges.
But this week's assessment found "logistics providers to major supermarkets and major customers confirmed that the proposed Project Sea Dragon transit times and logistics arrangements are sound," the Seafarms statement said.
"Customers confirmed that the remaining shelf life after transport was acceptable.
"Seafarms is now progressing financial and business case modelling for the project as the next step in determining the future of the project."
The Seafarms board is expected to make a decision on the future of Project Sea Dragon in early 2023.
The NT government has spent around $50 million on infrastructure to help the project reach fruition, granting it major project status in 2015.
