Six NSW men have been charged following an AFP investigation into the alleged importation of 120kg of cocaine concealed inside vehicle transmissions shipped from the United States, which led to the discovery of a commercial-scale clandestine drug laboratory in regional NSW.
An investigation began in December 2025, after Australian Border Force (ABF) officers intercepted a consignment containing four vehicle transmissions shipped from California in the United States.
During examination, ABF officers partially dismantled the heavy machinery components and allegedly located 120kg of cocaine hidden inside the transmissions, equating to 600,000 individual street deals* with an estimated street value of $39 million.
Following further inquiries, AFP investigators executed search warrants at properties in Kingsdale, Goulburn, Mortdale and Stanmore, NSW, on 18 June, 2026.
The search warrant at the Kingsdale property led to the discovery of a large commercial-grade clandestine laboratory. Across a five-day period NSW Police Force Chemical Operations, with the assistance of officers from NSW Police Hume District, assessed the laboratory as being used to manufacture commercial quantities of methamphetamine and cocaine.
During the search warrant police located and seized 44kg of cocaine and two kilograms of methamphetamine.
Four men, aged 35, 41, 45 and 49, were arrested at the Kingsdale property and subsequently charged with:
- One count of trafficking in a commercial quantity of a controlled drug, namely cocaine contrary to section 302.2(1) of the Criminal Code (Cth). This offence carries a maximum penalty of life imprisonment;
- One count of trafficking in a commercial quantity of a controlled drug, namely methamphetamine contrary to section 302.2(1) of the Criminal Code (Cth). This offence carries a maximum penalty of life imprisonment;
- One count of manufacturing a commercial quantity of a controlled drug, namely methamphetamine, contrary to section 305.5 of the Criminal Code (Cth). This offence carries a maximum penalty of 10 years' imprisonment;
- One count of manufacturing a commercial quantity of a controlled drug, namely cocaine contrary to section 305.5 of the Criminal Code (Cth). This offence carries a maximum penalty of 10 years' imprisonment; and
- One count of possessing equipment for commercial manufacture contrary to section 308.4(1) of the Criminal Code (Cth). This offence carries a maximum penalty of seven years' imprisonment.
The four men appeared in Goulburn Local Court on 19 June, 2026. The matter was adjourned to the Downing Centre Local Court on 18 August, 2026.
At the Mortdale property, police seized multiple mobile phones, $41,400 in cash, peptides, prescription medication, testosterone, and a quantity of white powder in a small resealable clip-seal bag suspected to contain cocaine.
A Mortdale man, 56, charged with:
- One count of failing to comply with a requirement to provide information under section 3LA(6) of the Crimes Act 1914 (Cth). This offence carries a maximum penalty of 10 years' imprisonment; and
- One count of dealing in property reasonably suspected to be the proceeds of crime contrary to section 400.9(1A) of the Criminal Code (Cth). This offence carries a maximum penalty of two years' imprisonment.
The Mortdale man appeared in the Downing Centre Local Court on 19 June, 2026, where he was refused bail. He is expected to appear before the same court on 18 August, 2026.
At the Stanmore property, AFP investigators seized a mobile phone, small quantities of substances suspected to be illicit drugs and drug paraphernalia.
A Stanmore man, 52, was charged with one count of supplying an indictable quantity of a prohibited drug, namely methylamphetamine, contrary to section 25(1) of the Drug Misuse and Trafficking Act 1985 (NSW). This offence carries a maximum penalty of 15 years' imprisonment.
He was granted bail to appear before Downing Centre Local Court on 28 July, 2026.
Investigations remain ongoing and further charges are expected.
AFP Detective Acting Superintendent Trevor Robinson said the operation demonstrated the effectiveness of intelligence-led investigations and strong partnerships between law enforcement agencies in disrupting organised crime.
"This investigation began with the detection of cocaine concealed in vehicle transmissions at the Australian border and ultimately led investigators to an alleged commercial-scale drug manufacturing operation in NSW," Det a/Supt Robinson said.
"Organised crime groups are driven by profit and have no regard for the significant harm illicit drugs cause to Australian communities.
"The AFP and our law enforcement partners are committed to targeting every stage of the criminal supply chain - from importation and manufacture through to distribution - to prevent dangerous drugs reaching our streets.
"The seizure of 120kg of cocaine and the disruption of an alleged clandestine laboratory have dealt a significant blow to the criminal syndicate allegedly involved and prevented further harm to the community."
ABF Superintendent Jared Leighton said anyone seeking to exploit border controls would be identified, targeted and stopped.
"Criminal syndicates are investing in increasingly sophisticated concealment methods. ABF officers use advanced targeting, intelligence and examination capabilities to detect and dismantle even the most complex smuggling attempts" Supt Leighton said.
"Seizures of this scale are not victimless - they drive addiction, crime and violence in our communities,"
"Tackling organised crime requires a united effort. The ABF works in partnership with state and federal agencies to identify and target those seeking to exploit our border."
NSWPF Commander of Drug and Firearms Squad's Chemical Operations Team, Detective Superintendent John Watson said this was a sophisticated and dangerous drug-manufacturing setup.
"By shutting down this operation, we have prevented a significant volume of methamphetamine and cocaine from being manufactured and pushed into our communities" Det Supt Watson said.
"Our specialist officers worked methodically to make the site safe and to preserve critical evidence, ensuring those responsible can be held to account.
"The success of this operation highlights the strength of our partnership with the AFP and ABF, and our shared commitment to dismantling criminal networks at every stage of their offending."
*ACIC Drug Calculator
