Conservation groups have called for tougher penalties for illegal land clearing, as the Western Australian Government continues to investigate a Chinese-owned company over the mysterious clearing of 120 hectares at Yakka Munga cattle station in the Kimberley.

Key points: Environmentalists say land-clearing penalties in WA are not currently tough enough to deter large companies from clearing illegally

Environmentalists say land-clearing penalties in WA are not currently tough enough to deter large companies from clearing illegally The WA Government ordered Chinese company, Zenith Australia, to stop clearing land at Yakka Munga station following a blockade by traditional owners

The WA Government ordered Chinese company, Zenith Australia, to stop clearing land at Yakka Munga station following a blockade by traditional owners Conservationists say this is a 'test case' for the Government, which is expected to come to a head at a meeting later this month

About 20 contractors, who were involved in the clearing work and had been expecting the contract to run through until October, have been forced to down tools after outraged Aboriginal traditional owners blockaded the station's gates last month.

The WA Government has since issued a stop-work order, while three government departments investigate the clearing.

The maximum penalty under the Environmental Protection Act for clearing without a permit is $500,000 for a company and $250,000 for an individual.

But, in the most recent high-profile case, in 2016 and under the previous State Government, a leaseholder was fined just $40,000 for clearing 800 hectares of land at Beefwood Park station, near Halls Creek.

WA Police speaking with Nyikina Mangala protesters on Yakka Munga Station in June. ( ABC Kimberley: Claire Moodie )

Martin Pritchard of the conservation group, Environs Kimberley, said that equated to about $50 a hectare and much higher fines were needed.

"Clearly, they are not deterrents," Mr Pritchard said.

"If this Government is serious about protecting the Kimberley, then they need to take decisive action."

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 1 minute 4 seconds 1 m 4 s Aerial view of land-clearing at Yakka Munga station in the Kimberley

WA's Environment Minister Stephen Dawson said the EP Act was being reviewed and consultation was expected to start later this year.

But he said the current penalties were significant.

"For serious environmental harm, the EP Act provides for maximum penalties of $1 million for a body corporate and $500,000 for an individual and/or five years imprisonment," he said.

The Minister said he also had concerns about the potential impact of the work at Yakka Munga.

"I share the concerns about the risk of soil degradation through water erosion if there is inadequate ground cover at the start of the next wet season," he said.

A woman walks behind a heavy-duty truck involved in the land clearing at Yakka Munga Station. ( ABC Kimberley: Andrew Seabourne )

'Important lesson'

Exactly why the land at Yakka Munga has been cleared remains unclear.

The leaseholder, Zenith Australia Group, a subsidiary of Chinese conglomerate, Shanghai CRED, has not responded to numerous approaches from the ABC for information.

But, Agriculture and Regional Development Minister, Alannah MacTiernan, who met Shanghai CRED's billionaire founder, Gui Guojie, on a trade visit to Shanghai in November has been scathing.

"This is an important lesson," Ms MacTiernan said.

"Perhaps some people take the approach that it's better to seek forgiveness rather than seek permission … we don't think that's right.

Gui Goujie introduces Regional Development Minister, Alannah MacTiernan to Shanghai CRED staff during a ministerial visit in November 2018. ( Supplied: WA Government )

"I think it's important for anyone taking up a pastoral lease to understand the purpose of that pastoral lease and to understand that there are important environmental considerations, there are important cultural considerations that need to always be taken into account."

The Pastoralists and Graziers Association has said the Chinese company wanted to improve access to the property and create "extensive watering points for livestock".

It said the company had acted well within its rights under its pastoral lease.

'Complete disregard'

But conservation groups are urging the State Government to match its rhetoric, with strong action.

"We see this as a test case," Mr Pritchard said.

"If this company gets away with this, then we could be looking at this kind of thing across the whole Kimberley.

"This shows a complete disregard for the Kimberley's ecosystems, one of the most intact tropical savannahs on the planet.

"We don't believe that the people of Western Australia want the Kimberley to be turned into the next wheatbelt."

The land-clearing at Yakka Munga has also led to allegations that the company breached an Indigenous Land Use Agreement with the Walalakoo Aboriginal Corporation which represents the native title holders of the area, the Nykina Mangala people and that cultural sites had been destroyed.

The dispute is expected to come to a head at a meeting between company representatives and traditional owners on Yakka Munga station later this month.

More land-clearing proposed at 'meet and greet'

Shanghai CRED owns another six pastoral leases in WA and has a joint venture with Gina Rinehart's Hancock Prospecting in 15 properties around the country, under the Kidman and Co pastoral estate.

In 2016, Shanghai CRED signed a multi-million dollar sponsorship deal with Port Adelaide Football Club, with the club agreeing to develop AFL in China as part of the agreement.

While the company has declined to make any comment on the land-clearing controversy at Yakka Munga, it has been revealed that it also had ambitions to clear land on its other Kimberley property, Mount Elizabeth cattle station, off the Gibb River road.

Peter Saunders of the Wilinggin Aboriginal Corporation. which represents the native title holders of that area, recalls a "meet and greet" at Zenith Australia's West Perth headquarters in February where he said a company representative had raised the prospect of "land-clearing and irrigation" at Mount Elizabeth.

"I said there were obviously environmental concerns for doing such a thing," Mr Saunders said.

Yakka Munga Station was purchased by the company, Shanghai Zenith, in 2016. ( Supplied: Wayne Bergmann )

"And, it could have quite significant implications from the cultural indigenous perspective and that that would need exploring and that would need permissions."

Mr Saunders said he was "very concerned" when he heard, several weeks later, about the land-clearing at Yakka Munga and had since made enquiries — including flying over Mount Elizabeth station in his light plane — to ensure that no land had been cleared.

Mr Saunders added that the traditional owners had concerns last year about access to a cultural rock art site on Mount Elizabeth but that those concerns had been addressed by Zenith Australia.

He said the company's on-ground staff were being proactive in trying to work with the local community to develop opportunities for cultural tourism.

"On-ground, I think the staff are trying to do the right thing," Mr Saunders said.

"They have tried to behave appropriately."