Authorities have uncovered a sophisticated illegal sandalwood processing plant at a property in Western Australia.

The Department of Parks and Wildlife worked with WA Police to pounce on the clandestine sandalwood oil distillery last week.

Authorities remain tight lipped about where the illegal set-up was found, except to say it was east of Perth.

The operation led to the seizure of distilling equipment and more than 6 tonnes of allegedly illegally harvested sandalwood, worth about $260,000.

Big rewards for big risks

The sweet smells and cosmetic properties of sandalwood oil have driven international demand and prices up to as much as $40,000 to $50,000 a tonne, making the native West Australian species an attractive target for criminal operations.

The discovery has surprised authorities.

Department spokesman Rick Dawson said this was the first clandestine sandalwood oil plant the department had found.

"We are concerned. Sandalwood belongs to the people of WA, and the Forest Products Commission harvests it in a sustainable way," he said

"What we find about these illegal activities in WA is they go in and harvest wholesale.

"They don't leave any wood behind. They pretty much clear the land and decimate the area."

Investigations set to continue

Sandalwood grows across the entire state.

Managing the natural resource is challenging for the State Government department.

"The department has got a great network through the Forest Products Commission, through the agriculture department and through likeminded conservationists," Mr Dawson said.

"We are appealing to members of the public. These people had to have a large network themselves to harvest this sandalwood somewhere out in the Wheatbelt and bring it all to Perth.

"We have anecdotal evidence that there are millions of dollars worth of illegal sandalwood and oils that is being sent out of Australia every year."

While no charges have been laid yet, the department said the penalties were severe.

"The Wildlife Conservation Act has powers of search and seizure that we have been able to use to great effect and disrupt these illegal activities," Mr Dawson said.

Investigations are ongoing. Members of the public with information about illegal sandalwood harvesting or processing are asked to contact the department.