Geoffrey Cousins

John Gay must resign as chairman immediately. Demonstrably he has destroyed shareholder value and the board has failed to keep the market properly informed.
Statement from Geoffrey Cousins

Re: Developments regarding the proposed pulp mill in the Tamar valley

Friday 29th August, 2008

For immediate release

Gunns’ statement to the stock exchange yesterday rings a final bell on its proposed pulp mill in the Tamar valley. Gunns have finally admitted they have no guarantee of funding and will not have any by November 30th 2008.

That is the date of expiry of the wood supply agreement with the Tasmanian government which gives certainty of both pricing and supply. Premier David Bartlett has said “Tasmanians deserve finality on this matter” and has stated that he will not allow uncertainty on the mills future to continue beyond that time.

Without a guarantee of supply and pricing there is no prospect whatever of Gunns obtaining financial backing.

Further, October 4th 2008 is an additional deadline by which Gunns is required to respond to federal minister Garrett on 11 environmental approvals. The company is unable to do so by it’s own admission.

Peter Garrett must issue an instruction that no further approvals of any kind are to be given to Gunns in the light of their inability to meet deadlines or obtain funding. A company that cannot proceed in an orderly fashion at this early stage and continually issues statements which prove to be untrue cannot be trusted to operate an environmentally sensitive project.

John Gay must resign as chairman immediately. Demonstrably he has destroyed shareholder value and the board has failed to keep the market properly informed.

When Wal King, CEO of Leighton Holdings Ltd, the proposed builder of the mill, said recently that the project was dead, Gunns responded by stated that he was misinformed. Gunns new statement makes it clear Wal King was well informed.

The Gunns pulp mill is dead. With no money, no supply or price certainty, no plan of action, the Tasmanian and Federal government should put Gunns and its long suffering shareholders out of their misery now.

Geoffrey Cousins