Executive Summary

1. Giant Clam Aquaculture, and Ecotourism by Djulin Marine Aboriginal Corporation in North Queensland. Arthur Johnson, Michael Johnson, Brian Johnson, Russell Butler Snr., Russell Butler Jr., Daren Butler, Dr. Richard Braley , Dr. Andrew Lewis, and Dr. John Paterson

2. Executive Summary • Aquacultured giant clams over 20 yr. old will be used as 1st generation broodstock to produce 2nd generation offspring which can be traded internationally. Sale of clams to the aquarium market can begin 2-3 years after starting up, and a percentage of stock will be harvested for meat and shell at different ages. High production rates (29 tonnes of meat / ha / yr) for the largest species, Tridacna gigas are due to the symbiosis with a dinoflagellate algae which rightly gives giant clams the term “solar animals”. In 5-7 years the value of the clams will be very profitable. The development of farms in the Palm Island group is and integral part of this plan, and in its development there will be training opportunities for the local farmers. • Ecotourism on Magnetic Island, the Palm Islands and the Bandjin sea country and islands will be able to run even before a hatchery and nursery are built. Overseas tourists are keen to be involved in ecotourism which involves Indigenous people and themes. • We believe that an investor who studies the great potential of this project will not only obtain a large return on their investment but will also see this as a true sunrise industry.

3. Project Overview

4. Locations Bandjin sea country potential farm sites (Stage 5) Orpheus Island Research Station (JCU). Source of F1 giant clam broodstock (Stage 1) Palm Islands: hatchery / nursery & farm sites, Eco-tourism (Stages 1 - 3) White Lady Bay, Magnetic Island, Eco-tourism (Stage 1)

5. Magnetic Island (Stage 1) Eco-tourism lead by an indigenous guide would be a great asset to Magnetic Island tourism. Currently there is little coastal indigenous tourism in north Queensland so this would help put Magnetic Island on the map. The local Wulgurukaba tribe were known as the canoe people and Magnetic Island has a place in the traditional stories which ties it to the Palm Island group.

6. Great Palm Island - Stages 1-3 Palm Island provides room for grow-out & mass cultures of clams, oysters and snails. Best potential sites along western side, within view ofsome of the community Available reef grow-out areas >25 ha Eco-tourism has great potential here, both on land & in the sea.

7. Fantome Island (Stages 1-3) Land site – good for medium to large-scale hatchery & nursery facility. Reef flat suitable as ocean growout Former Leper Hospital site, northern Fantome Is.; note 300-m mark for reference in Juno Bay. .Traditional Owners from Palm Is. will need to be involved such as Walter & Alan Palm Island. Eco-tourism is well-suited to this site for land and sea.

8. Processing plant on the mainland (Stage 4) • While meats can be harvested at the grow-out farm, they must be brought to the mainland on ice for processing. A boat that can carry the chilled meat to Lucinda port and a refrigerated truck will take the meat to the processing plant. The plant may be built in Ingham or Townsville so it is not far from the Townsville airport. • The processing plant will be used to clean, size, package and freeze meats

9. Dunk Island, Bandjin Sea Country, northern end of Rockingham Bay (Stage 5) Note100-m mark for reference Reef grow-out area > 20 ha; Eco-tourism is also suited for Dunk Island

10. Gould Island, Bandjin Sea Country, Missionary Bay (Stage 5) Note100-m mark for reference Reef grow-out area > 15 ha

11. White Lady Bay (Stage 1), Eco-Tourism beach looking toward that south end of WLB (right) White Lady Bay has a beautiful beach strewn with coral rubble; the reef flat has some of the best coral in the Horseshoe bay area. It has a history of oyster farming over the last half-century and cultured giant clams (100 kg each) can be seen on the reef flats. There are granite rock formations and bush to be explored as well. beach looking toward the north end of WLB (right)

12. Reef Flat – White Lady Bay Since 1990-91 a cohort of giant clams [cultured by R. Braley at Seafarm PL ] were relocated from Orpheus Is. as mimics of high density natural populations for long-term observations. These clams have been monitored for growth, mortality, bleaching, and fouling. Photos: Reef flat (top riight) Looking toward Horseshoe Bay (Bottom).

13. Objective 1: AQUACULTUREProduction - clams • Giant clams are CITES-listed (Appendix 2) threatened species, JCU has F1 cultured clams as valuable breeding stock at Orpheus Island + F1s at White Lady Bay. F2 clams would be targetted for export.

14. Objective 1: AQUACULTUREGiant Clams –species of interest Tridacna gigas (left) is the main species of interest for meat, shell and some aquarium trade; production rate of 29 tonnes/ha/yr wet meat weight; several thousand F1 clams are on Orpheus Is. T. crocea & T. maxima (bottom left, centre) are best for aquarium trade; while Hippopus hippopus (below right) includes 100 + F1 clams at Orpheus Is.

15. Objective 1: AQUACULTUREHatchery Facilities A multi-reef species hatchery facility leads to commercial development. Other target organisms possible: pearl oysters & rock oysters trochus abalone Beche-de-mer (sea cucumbers) Coral broodstock from fragments

16. Objective 1: AQUACULTUREProduction – trochus The immediate use of cultured trochus juveniles is in polyculture with giant clams. The post-larval trochus eat filamentous algae and diatoms that cover the substrate the clams grow upon, therefore keeping the clams clean of algal overgrowth. The commercial trochus shell, Trochus niloticus, is used in button-making. Hatchery phase is simple, land nursery at 8-12 mo.& ocean nursery / growout takes another 2-4 years. Farmers then remove meats, dry shells and either sell to wholesale buyer or the business could begin to process the shell with a button blanking factory before sending to Korea or Japan for finishing.

17. Objective 1: AQUACULTUREProduction – pearl oysters and rock oysters (later Stage) Pinctada margaritifera, the blacklip pearl oyster Photomicrograph of Pinctada maxima spat with visible gills Pinctada maxima, the silverlip pearl oyster Blacklip rock oyster, Crassostrea echinata culture

18. Objective 1: AQUACULTURENursery & Growout - clams • Initial land-based nursery at Fanome Island. • Initiate negotiations and start up for ocean nursery and growout of cultured clams in Palm Islands, including Fantome Island.

19. Objective 1: AQUACULTURELand Nurseries Land nurseries maintain seed clams for 5-6 mo. before the ocean nursery phase. A small system can also be developed & operated in the Palm Islands to hold some seed clams.

20. Objective 1-2: AQUACULTUREOcean Nurseries - clams Ocean nurseries may be subtidal, on racks (right, top & bottom) or low intertidal (below, centre & left). The Palm Islands would be ideal. Protection from octopus, tuskfish, etc. required for 2-3 years in ocean nurseries. Scheduled checks, cleaning, measurements needed. A small ocean nursery may be developed at Dunk Island.

21. Objective 1: AQUACULTUREOcean Growout (mainly in Phases 2-3) Ocean growout begins when protective covers are removed and clams left to grow until harvested. T. gigas takes 7-8 yrs. [meat & shell], but 2-3 yrs. for aquarium trade. Little effort needed by farm workers at this stage. After F1s have been growing at Pioneer Bay over 20 yr. no disease has been seen to kill the clams but bleaching events have caused some mortality. Diseases, parasites and pests were studied and published in ACIAR Monogr. 15 (Braley, ed., 1992)

22. Objective 2: Eco-Tourism • The Tropical Island locations with potential for hatchery and grow-out sites have high eco-tourism values in their own right. • We anticipate a strong demand for an eco-tourism product that combines: • Visiting an indigenous aquaculture operation • Marine and terrestrial ecotours at tropical island locations in North Queensland • Interaction with Indigenous guides and information on the cultural heritage related to each island location. • Djulin technical staff would be involved in the development of these ecotourism products and training of indigenous tour leaders.

23. Objective 2: Eco-Tourism

24. Aquaculture: Overview of Project – Phases 2-3 • After 2 years of phase 1, a review of the success to date will be required to more accurately estimate production and profitability. If all indicators are positive then expansion takes place for: • The multi-species hatchery • Grow-out farms in the Palm Islands & Bandjin sea country

25. Aquaculture: Markets – clams & trochus • Export live clams for Aquarium trade • Clam meat, Clam shells • Trochus meat and shells

26. Aquaculture: Profitability – meat and shell, clam culture Estimate of value of sales of Tg shell, adductor, and mantle + other soft tissues Assume Adductor value = Aus$30 / kg, Mantle value = Aus$2 / kg, Shell value = Aus$5 - 8 / shell at 5 or 7 yr. Note number of shells required at 5 & 7 yr.

27. Profitability of Large-Scale Giant Clam Culture for meat (e.g. T. gigas) Most likely market age 3-7 yr.

28. Aquaculture: Potential Profitability – Aquarium trade, giant clams

29. Suggested Structure of Business at Fantome Island between DMAC, Investor, Palm Island Council and T.O.s Palm Island Council & T.O.s Board of Directors of DMAC Investor Board of Directors & CEO CEO (Managing Director) Scientific & Technical managers Local Farm manager Education / Edo-tourism Program Farm Assistants & Trainees

30. Conceptual Facility Design for Fantome Island Intake pipes beach Central Lab pumphouse Seawater delivery line Seawater sump Module 1: Giant Clams & Trochus Module 3: Marine Fish Waterless toilets / showers 50 - 100 T reservoir Kitchen, living area + 6 bedrooms Module 2: Pearl oysters Module 1: Land nursery

31. Funding Sources • Several potential funding programs within Dept. of Employment and Workplace relations (DEWR): STEP (Structural Training and Employment Project) CDEP (Community Development Employment Project) ISEP (Indigenous Self Employment Program) ISBF (Indigenous Small Business Fund) ICAS (Indigenous Capital Assistance Scheme) IBDP (Indigenous Business Development Program) IBA (Indigenous Business Australia) • Private funding • Commercialisation Australia • Venture Capital • Philanthropists

32. Year 1 Budget Start up Budget for aquaculture operations: New hatchery / nursery built at WLB, Magnetic is. or Fantome Is. (includes housing for staff & visitors) $750,000 Wages / salaries (business, trainee technicians & education) $170,000* Ocean Nursery – WLB, Bandjin sea country or Palm Islands $ 22,000 Travel costs (business & education) $ 6,000 Permits and application costs $100,000** Sub TOTAL $1,048,000 Budget for Eco-Tourism: Magnetic Island $7500 GRAND TOTAL $ 1,055,500

33. Year 2 Budget • Year 2 Budget for aquaculture operations: • hatchery / nursery improvements & running cost $ 75,000 • Wages / salaries (business & education) $200,000 • Land Nursery – Palm Island $ 10,000 • Ocean Nursery – Palm Island & Bandjin sea country $ 8,000 • Travel costs (business & education) $ 5,000 • Permits and application costs $ 0 • Total $298,000 Year 2 Budget for Eco-Tourism operations: Magnetic Island $5000 Palm Island $5000 Bandjin Sea Country $5000 Total $15000 ` 2 yr GRAND TOTAL $ 1,368,500 Estimated annual operating budget beyond Yr. 2 $250,000