The Department of Defense and ADI Ltd have reached the first critical milestone on the road to modernizing the Mulwala propellant plant as announced on 9 July 2001 by Dr Brendan Nelson MP, Parliamentary Secretary to the Minister for Defense.
In a ceremony at Defense Headquarters, Mr. Michael Roche, Under Secretary of Defense Materiel and Mr. Jean-Georges Malcor, Managing Director of ADI Ltd signed a Memorandum of Understanding ensuring the redevelopment of the indigenous munition capability at Mulwala.
Dr Nelson said, 'this is the first critical step in the redevelopment of this important capability. Important not only for the strategic reasons of maintaining domestic capability to produce high quality munitions, but equally important in terms of the Government's commitment to jobs and families in regional and rural Australia.'
The Memorandum commits the Commonwealth to long term domestic production of propellant and high explosives at Mulwala through an upgraded plant. It further commits ADI to submit a proposal for the modernization and supply of munitions by 31 March 2002 and sets the broad terms for progress to the next stage of modernization.
The next step is for the department to develop a detailed Statement of Requirement followed by a workshop with stakeholders. 'Defense has an excellent working relationship with the ADI munitions factory at Benalla and I am confident the same can be achieved at Mulwala', said Dr Nelson.
Dr Nelson said, 'I am delighted to see negotiations progressing so well and I look forward to maintaining that momentum with the next stage, development of the Environmental Impact Study as soon as possible'.
Dr Nelson also announced that a further agreement between the Prime Minister and Mayors of Moira, Corowa and Delatite Shire Councils will be signed at Parliament House on Thursday 20 September at 11.00 am.
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Defence And ADI Sign Historic Agreement On Mulwala
