One of the most controversial projects planned for northern Australia, the massive Ord 3 irrigation scheme, will be subjected to rigorous environmental assessment following a community campaign.
In August 2025, more than 4,500 concerned Australians sent emails to Federal Environment Minister Murray Watt, demanding the highest level of federal environmental assessment for AAM Investment Groups’ plans for thousands of hectares of broadacre cotton on the border of the Northern Territory and Western Australia.
In a significant win for the community, Federal Environment Minister Murray Watt has declared the Ord 3 project - rebranded ‘Sweetwater Agricultural Development Stage 1’ on Spirit Hills Station - will be subject to a full Environmental Impact Statement (EIS).
This means real scrutiny of the likely impacts of the threatened species including freshwater sawfish (endangered), northern blue-tongued skinks (critically endangered), mertens’ water monitors (endangered), red goshawks (endangered), gouldian finches (endangered), and ghost bats (vulnerable).
Securing an EIS for a project referred to the Federal Government is a remarkable result for the community, as analysis shows it only happens in about 3 per cent of EPBC assessment decisions.
The initial referral for a 4525 hectare development at Spirit Hills Station is the first step in a staged development of more than 24,500 hectares of land for cotton and a mega dam. It also includes a dam capable of holding 10,000 megalitres.
The referral reveals plans to construct a new 10 billion litre dam (equivalent to 4000 Olympic swimming pools) using flows from the pristine Keep River, downstream of the magnificent Keep River National Park.
In total, up to 100,000 hectares of cotton development is planned across the NT, including as part of the Keep Plains Development Area. AAM Investment Group successfully tendered for the Keep Plains 67,500-hectare parcel from the NT Land Corporation in 2020.
Subsidies must end
Environment groups are calling for an end to taxpayer subsidies for the cotton industry in Northern Australia, following $34 million in federal subsidies for the Kununurra cotton processing facility through the Northern Australia Infrastructure Fund and a $9 million investment in roads connected to the Katherine cotton processing facility.
A further $77 million of public funds has been spent on getting water out to private property to grow cotton by the Western Australian Government.
The NT government and federal government has jointly invested over $58 million in upgrading the Keep River Plains Road to facilitate access to the development area.
Environment Centre NT Executive Director Kirsty Howey said:
“This is an incredible win for the community and for nature. We congratulate Minister Watt for ensuring this massive industrial cotton development located in a pristine and precious part of the world is rigorously assessed.”
“Territorians don’t want our pristine rivers and floodplains trashed, and taxpayer funds wasted on yet another failed project that simply doesn’t stack up and has virtually no public benefit.”
“We’re calling on the Albanese Government to commit to no public funds being spent on this disastrous project.”
Environs Kimberley Director Martin Pritchard said:
“Ord scheme is a classic ‘white elephant’ development, hinging on massive public subsidies for roads and other infrastructure and broken promises about community benefits.”
“There’s already been more than 5,450 hectares of tropical savannah and floodplain near Kununurra destroyed in the last three years after land was handed to Chinese owned Kimberley Agriculture Investments and Keep Farming Pty Ltd.”
“The Albanese and Cook Labor Government’s $120 million handout to cotton farmers is an outrageous use of taxpayer funds and will lead to more broadscale destruction of northern Australia’s globally significant tropical savanna.”
Environmental Justice Australia Senior Lawyer Elena Zola said:
“We welcome scrutiny by the Federal Government. This decision marks a departure from the long standing practice of deferring to state and territory processes, and reflects the need for assessment of a standard capable of protecting nationally significant environmental values.
“As ECNT’s legal team, we will closely follow the assessment process to ensure potential impacts on nature are properly assessed in line with national environment law.”
