SHIRE of Collie president Wayne Sanford and Collie-Preston MLA Mick Murray have urged the state government to convince Perdaman Industries not to move the proposed Shotts Park urea plant to Victoria.
Perdaman Industries chairman Vikas Rambal last week said the company had failed to reach an agreement for crucial coal supply with Griffin and Premier Coal.
Mr Rambal is having coal from a Victoria mine tested to check its suitability and pave the way for the project's relocation, with the results to be known in a month.
Mr Murray urged the premier to step in to prevent the South West losing 1500 construction jobs and ongoing employment opportunities.
Mr Sanford said it would represent a lost opportunity, not only for Collie and the region but the whole state.
"When Collie Coal was tested, the results showed overwhelmingly it was extremely well suited for coal gasification purposes, a process that is inherent in the fertiliser plant proposal," he said.
"I'm sure that any prospective coal supplier will be doing their best to prove up their coal product.
"We encourage the key stakeholders including the state government to work towards a solution that will ultimately provide benefit to all."
A Perdaman spokesperson said the company had spent $150 million on the project since 2009 and if a coal agreement was made today construction would commence within eight months.
Perdaman has not been in negotiations with Premier Coal for the past 11 months.
"The government can help by securing coal for the domestic market for the purpose of manufacturing of this $3.8 billion plant, with a construction manpower force of 2200," the spokesperson said.