Seafarms’ shrimp farm project shelved

PLANS to build the world’s largest shrimp farm in Australia’s Northern Territory have been put on hold.

Seafarms unveiled Project Sea Dragon more than four years ago and last summer announced plans to raise around £50m. It had also received backing from the Japanese seafood giant Nissui.

Seafarms said it remains committed to the project, but explained that construction of the 25,000 acre black tiger prawn facility was not financially feasible in its current form.

The site, more than 200 miles south of Darwin, is seen as too remote and would have presented construction, breeding, processing and logistical challenges.

Seafarms told the Australian Securities Exchange in an investor briefing last week: “It will not generate acceptable financial return.The existing scope cannot be completed for targeted costs or achieve target completion dates, and the project currently involves unacceptable risk.”

Construction has been postponed until the production plan can be scrutinised further.