The shemozzle

Geoff Law Wilderness Society MR

That leaves over 1 million tonnes per annum of Forestry Tasmania’s contracted supply to come from native forests – which contradicts Gunns’ statements to the ASX.
MEDIA RELEASE 31 August 2008

GUNNS’ CLAIMS TO ASX ARE AT ODDS WITH WOOD-SUPPLY DEAL WITH FORESTRY TASMANIA

Gunns and Bob Gordon called on to explain the shemozzle

Statements made by Gunns to the ASX last week about the pulp mill are at odds with the company’s wood-supply deal with Forestry Tasmania, according to the Wilderness Society.

Gunns claimed that the pulp mill would be 100% based on plantations within five years of starting operations. However, the wood-supply deal with Forestry Tasmania includes native forests. And Forestry Tasmania’s projections indicate that over one million tonnes per annum of logs for the pulp mill will have to come from native forests on public land.

“The whole wood-supply situation for the pulp mill is a shemozzle that Gunns and Forestry Tasmania must clarify urgently,” said Wilderness Society Campaign Manager, Geoff Law.

“Gunns’ claim about plantations is contradicted by Forestry Tasmania’s projections, leaving over one million tonnes per annum to come from native forests.”

“Either Gunns’ claims are false, or the wood-supply deal with Forestry Tasmania is redundant.”

The pulp mill, if built, will eventually consume 4 million tonnes of pulpwood each year. Forestry Tasmania is contracted to supply 1.5 million tonnes per annum of that under last year’s wood supply agreement (Section 4.1, page 11). http://www.forestrytas.com.au/uploads/File/pdf/Gunns%20LTPSA.pdf

In its statement to the ASX late Thursday, Gunns said:
The mill project is based on Gunns’ high quality managed plantation estate. The considerable expansion of this estate over the past five years means Gunns now has the capacity to supply the mill with a minimum of 60% plantation supply at start up, reaching 100% of plantation supply within five years of operations. (page 5, Gunns Limited Reports Earnings Growth, 28 August 2008). http://www.asx.com.au/asxpdf/20080828/pdf/31bzszmmjzjmch.pdf

However, the wood-supply deal with Forestry Tasmania includes native forest (Section 7.1 (a) (i), page 16). And according to pulpwood projections published last year by Forestry Tasmania, it can provide less than 500,000 tonnes of pulpwood per annum from plantations. (page 18, Five-Yearly Sustainable High Quality Eucalypt Sawlog Supply, from Tasmanian State Forest, August 2007.) http://www.forestrytas.com.au/assets/0000/0113/SustSupply_RevNo3_100.pdf

That leaves over 1 million tonnes per annum of Forestry Tasmania’s contracted supply to come from native forests – which contradicts Gunns’ statements to the ASX.