TASMANIA'S PULP MILL    

Modern Kraft Pulp Mill approved for Tasmania's Bell Bay Industrial Site

A modern pulp mill at Tasmania's Bell Bay  industrial site on the Tamar has been approved. This exciting project will  add significant value to wood chips currently destined for export .

The Parliament of Tasmania approved the permit conditions on 30 August 2007 . The then Federal Minister for the Environment Malcolm Turnbull signed off on Commonwealth environmental values on4 October 2007.

The Pulp mill development is set to add $6.7 billion to Tasmania's economy, creating and securing jobs. The  down stream processing a natural renewable resource in accordance with the conditions imposed by the State and Federal regulators will result in a win-win situation for Tasmania, Gunns Limited shareholders and the planet.

With so much discussion and media coverage of the modern elemental chlorine free kraft pulp mill approved for the Tamar Valley, this site is intended to provide facts and details behind the headlines and an in depth  look at some of the claims being made about the pulp mill that continue to be reported in the media.

As the pulp mill has been approved by both the Federal Government and the State Parliament it is not intended that the site convince the reader to be pro-mill or anti - mill but to provide a balance of information and resources to allow the reader to either make up their own minds or to provide a pathway to find out more about the mill to be able to make an informed opinion on what this approval means to them.

This site provides the detail behind the 30 second news grab and allows for follow up.

International consensus reached on Forests and climate change

Of all the options for responding to climate change, forest-related mitigation measures are, in the short to medium term, among the most practicable and cost-effective. They also have very low opportunity costs and can make an immediate and direct contribution to sustainable development and rural livelihoods.

The Head of the Forest Conservation Programme at IUCN, the International Union for Conservation of Nature released this land mark statement supported by World Business Council for Sustainable Development who added:

"All of us have a shared responsibility to insist on sustainable forest management that produces fiber for wood and paper products, bioenergy and that also provides critical ecosystems services such as carbon sequestration and water quality,"

For more details see the report at the WBCSD

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Latest news

Tasmania can still have a world class pulp mill

Since the annual general meeting of Gunns Limited held in October 2008, there has been speculation about the future of this exciting project.

At the AGM it was announced that the project was in a ‘ready status’ for construction to start once finance was obtained but that the World financial crisis has had a big impact on the timing of attaining financial close.

The company’s CEO said the financial fundamentals were sound and the “Bell Bay Mill will be highly competitive in the global market...due to the location and quality of the wood resource, the scale and design of the mill and the proximity of the mill to the Asian market.

Gunns confirmed it is continuing to proceed with the Pulp Mill Project as planned. Final Federal Government approval is expected in January 2009, with construction of the project remaining on track to proceed once financing is secured.

The company also advised that that it will not seek to renew the Sovereign Risk Agreement for wood supply to the Bell Bay Pulp Mill.

There will be no impact on wilderness or old growth forest in the wood supply. It will be predominantly from plantations with an initial mix of pulp wood from the integrated harvesting of regrowth forests.

This means that once the final modules of the Environment Impact Management plan have been assessed by the Independent Expert Group and endorsed by the Federal Minister, the project can be quickly commenced as soon as finance is secured.

The pulp mill remains:

• A significant value creation opportunity for Tasmania
• An opportunity to value add our wood resource within Australia
• The mill will diversify the State forest sector and provide regional stability
• the best available environmental management technology
• Creating and securing thousands of Tasmanian jobs

The current financial crisis whilst it has slowed the commencement of the projects, demonstrates that Tasmania ’s economy is not insulated and desperately needs the additional $6.7 billion boost to Gross State Product that the mill will provide.

Pulp Mill ready; just waiting financial go.

The Examiner has reported that at the AGM of Gunns Limited held on 30 October 2008 the Chairman told shareholders that the mill was in “Ready Status”. The last modules of the environmental management plan were with the Federal Government.

However, financial closure on the funding of the pulp mill would depend of the current World financial crisis. Read the Chairman’s Statement , as well as follow the link to the presentation (1.8 mb file) on its plantation estate given at the AGM about the Company.

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