Premier Geoff Gallop said today that the State Government had approved funding for a $22.6 million commercial desalination plant for the Burrup Fertilisers project.

He said the company had already achieved environmental approval and had recently reached a breakthrough agreement with three native title claimants in the area.

"Access to a guaranteed water supply and the resolution of native title issues covering the proposed site for this project were two major hurdles that have now been overcome," the Premier said.

After completion, the Burrup Fertiliser project will be the largest ammonia plant in the world, producing 759,000 tonnes per annum by utilising 82 terrajoules of natural gas per day. The project create about 500 construction jobs and a permanent workforce of 60.

The Premier said Burrup Fertilisers had chosen the Water Corporation to provide it with a commercial desalination plant, to enable its process water to be produced from the sea, rather than place any additional demands upon the existing regional water sources.

The Burrup Fertiliser project is one of six gas processing projects proposed for the Burrup Peninsula with a combined value of more than $6 billion.

The Government has already committed $136 million towards the provision of common-user infrastructure to encourage the development of the Burrup into a world-class industrial estate.

Premier Gallop said the resolution of native title issues on the Burrup was also crucial to realisation of that vision. The Burrup Fertiliser native title deal had cleared the way for a 35-year lease over a 70 hectare site with a further 35-year renewal option.