TWO pastoral leases have come up for grabs after BHP Billiton moved to sublease its East Pilbara, Ethel Creek and Marillana stations.
The mining giant, while continuing its iron ore operations on the properties, has decided to step back from cattle production.
Expressions of interest are being sought by Elders pastoral, corporate and international property consultant Greg Smith, who said there would be “no shortage of interest” in the stations.
Mr Smith said the successful sub-leasee will be required to purchase the 8000 head of cattle – which were priced at about $8 million.
They will also be a required to purchase the plant and equipment, pay the first year’s lease and make a good will payment to secure the lease – priced at about $2m.
“It could be more – depending on what offer is put forward,” Mr Smith said.
He said the Droughtmaster, Santa Gertrudis, Shorthorn cattle were of “very high quality” and a “good, even-looking herd with shiny smooth coats”.
“They are a modern-looking herd with good genetics, with high attention paid to replacement female selection,” Mr Smith said.
He said both stations as an aggregation present as a first-class cattle breeding opportunity, with management having run the property on a conservative basis.
“The property has regularly produced 5000 head of sale cattle each year,” he said.
“The 2006 Rangeland Reports suggests a potential combined carrying capacity of 12,770 head of cattle – although this figure may be optimistic as there are areas excluded from grazing by mining activity.”
Mr Smith said the total size of the stations was about 600,000 hectares, with Ethel Creek averaging 275 millimetres of rain annually and Marillana station averaging 310mm per year.
He said the standard of infrastructure, including yards, water and fences was high.
“The need for capital expenditure over the next few years will be minimal,” he said.
Mr Smith described the land as a mixture of open plain and alluvial plains intersected by sandy rises with floodplain country supporting strong stands of buffel, birdwood, native grasses and areas of mulga.
There were more than 90 water points across the stations, with almost all solar powered, plus “river pools to numerous to mention”.
“Due to the high level of interest in this opportunity and the logistical problems presented by the size of the property, the expression of interest process will be conducted in two stages,” Mr Smith said.
“A short list of the most commercially competitive offers from suitably qualified parties will be selected and they will be invited to carry out a full inspection of the properties,” Mr Smith said.
He said Elders would be advertising the property in the weeks ahead.
BHP were contacted for comment but hadn’t replied as Farm Weekly went to press.
