Western Australia's government is betting its post-coal economy on becoming a major domestic weapons manufacturer, announcing plans to establish a defence manufacturing hub that could eventually rival the state's resources sector as an economic driver.
Premier Roger Cook unveiled the initiative at the Indian Ocean Defence and Security Conference in Perth on May 26, 2026, positioning the move as part of the state's broader economic transition as it phases out coal-fired power generation by 2030. The government has identified Collie, approximately 200 kilometres south of Perth, as a potential site for the facility, which would manufacture guided missiles and other defence equipment for the Australian military.
The Economic Pivot
Defence Industry Minister Paul Papalia framed the proposal as a solution to economic disruption in coal-dependent regions. The facility could employ around 1,300 workers from Collie's skilled coal industry workforce, according to Papalia, who noted the town possesses existing industrial infrastructure and rail access to the Port of Bunbury for export.
Papalia said the government aimed to make the defence industry "the second biggest contributor to the state's economy after the resources sector," potentially encompassing a broad range of defence manufacturing including "vehicles, satellites, uniforms or first aid kits." He described the ambition as creating "a Silicon Valley for defence manufacturing in Western Australia."
The push reflects what Papalia characterized as a global trend: "Right around the world right now, nations are uplifting [their] defence spend," he said, noting that "in most places, their industrial base can't support their ambitions, but in WA we have a massive resources sector [where] we can apply that industrial base to defence outcomes."
Questions About Feasibility and Intent
However, the proposal faces skepticism from some quarters. Liberal MP Steve Thomas called the bid a "thought bubble," arguing that transitioning coal workers to military technology sectors requires more than existing skills. "If you're going to start creating this sort of military technology, you need a highly secure area, you need support networks," Thomas said, questioning whether coal miners could become IT specialists in the military sector.
Collie Shire President Ian Miffling acknowledged the proposal remains vague in scope, stating: "I wouldn't get too excited about whether it's missiles or hand grenades, it's ... about all sorts of equipment. It's all very broad at this stage."
When asked by a journalist whether he was comfortable becoming "an arms dealer," Cook reframed the discussion around employment. "I'm a jobs dealer, I'm about establishing jobs," he responded. Regarding community concerns about manufacturing "deadly weapons," Cook drew parallels to existing industrial operations: "Western Australia's got a manufacturing industry that deals with highly flammable, explosive substances all the time. This is no different."
Political Opposition
Greens MP Sophie McNeill issued a sharp statement of opposition, declaring that WA "must not become a home for murderous global weapons manufacturers." She argued the initiative would not benefit local communities but would "only line the pockets of foreign arms companies," calling it incompatible with the state's future.
The government is currently seeking expressions of interest from Australian and international defence companies in neighbouring and allied countries to deliver the project. This announcement comes as Australia expands its domestic weapons manufacturing capacity nationally—the country's first missile assembly facility launched in South Australia in December 2025, with a second factory planned for New South Wales.
The conference where Cook made the announcement featured heavy police presence, with officers stationed at entrances and throughout the venue, reflecting the security-focused nature of defence industry discussions.
Why This Matters:
This initiative raises fundamental questions about economic transition, worker protection, and democratic accountability in major industrial policy decisions. While the proposal offers potential employment for workers displaced by coal phase-out, the specifics remain unclear—the government has not published detailed plans about worker retraining, wage guarantees, or community consultation mechanisms. The plan also reflects a broader pattern of using regional economic distress to justify industrial projects with limited public scrutiny. Questions persist about whether coal workers possess the skills needed for advanced defence manufacturing without substantial investment in education and training. Additionally, the decision to pursue weapons manufacturing as a primary economic strategy warrants public debate about the state's role in global arms production and the adequacy of community input into decisions with long-term environmental, security, and social implications.