ABC ONLINE
The Tasmanian timber company Gunns has found a preferred joint venture partner to fund its controversial $2 billion pulp mill in northern Tasmania.
(And, What the Greens, Wilderness Society say …)
In April, Gunns said it would announce a joint venture partner in June.
In a statement to the stock exchange today, Gunns says it is moving forward positively with a preferred joint venture partner.
The statement does not name the partner but the company says it is in negiotiations with one company which has significant international experience in the pulp and paper sector.
Gunns also says in parallel with the joint venture partner, it has continued to progess talks with banks, with market conditions in the sector recently improved.
Gunns secured approval to build the mill in January but work can not start until the company gets finance.
This morning Gunns shares have been trading at $1.02, a five per cent jump since the announcement.
Gunns also says it has continued to progress negotiations with banks, with market conditions in the sector recently improved.
A financial analyst says the announcement shows Gunns is having trouble securing finance.
Matthew Torenius has told ABC Local Radio conditions have improved for companies looking to finance large projects but international credit markets remain tight.
“It’s another announcement from Gunns I suppose which sort of says ‘We’re continuing to work on things, we’ve narrowed it down to one partner’ but still struggling with the finance and obviously the finer details of the agreement,” he said. Read more here
And,
The owners of two north-west Tasmanian paper mills want financial assistance from the state and federal goverments to help stave off closure. Paperlix has released the results of a long-awaited review of its Wesley Vale and Burnie operations. It has described the mills’ financial losses as unacceptable. Paperlinx has been crunching the numbers on its Tasmanian mills since February, when the two loss-making plants were left out of a Japanese buy out. Company spokesman David Shirer says increases in the value of the Australian dollar are largely to blame. Read more here
The Greens
PULP MILL STILL PULP FICTION
Greens to Continue Opposition to Polluting Mill
Kim Booth MP
Greens Pulp Mill Spokesperson
Monday, 29 June 2009
www.tas.greens.org.au
The Tasmanian Greens today pledged to continue their opposition to Gunns Limited’s proposed Tamar Valley pulp mill, following today’s announcement that “Gunns has now made a decision to proceed with one company to develop a Joint Venture Agreement for the [pulp mill] project”. [1]
Greens Pulp Mill spokesperson Kim Booth MP said despite Gunns’ announcement that they are entering negotiations for a joint venture partner, strong local opposition has resulted in the company being unable to secure finance for the mill and this problem will continue regardless of any alleged joint venture negotiation.
Mr Booth also reiterated the Greens’ belief that the proposed pulp mill will damage existing Tasmanian businesses and will actually cost Tasmanian jobs and damage Tasmania’s economy if allowed to proceed.
“Gunns’ inability to secure finance because of strong local opposition to the pulp mill means that any mill is still a long way off, despite this latest non-news from Gunns about their search for a joint venture partner,” said Mr Booth.
“Things must be desperate when Gunns feel the need to announce that they have finally found a company that is actually willing to talk to them about a joint venture agreement.”
“During an economic crisis, the focus in Tasmania should be on existing businesses, not pie-in-the-sky projects that will pollute the Tamar Valley airshed, add to Tasmania’s road toll, and financially damage neighbouring businesses.
“Gunns’ history of false or misleading statements regarding the pulp mill makes this latest ‘news,’ regarding the selection of a nameless entity to begin discussions, a farcical non-announcement.”
“The Tasmanian Greens will continue to defend the Tamar Valley, Tasmania’s forests, and the Tasmanian economy, from Gunns’ proposed Tamar Valley pulp mill,” said Mr Booth.
——————————————————————————–
Reference: [1] “Bell Bay Project Update,” Gunns Limited, 29 June 2009, http://www.asx.com.au/asxpdf/20090629/pdf/31j9367rxwzz6s.pdf
The Wilderness Society
www.wilderness.org.au
Media Release – Friday 29th June 2009
LACK OF JOINT-VENTURE PARTNER DEAL ALLOWS FOR PULP MILL RETHINK
Gunns’ release to the Australian Stock Exchange (ASX) today continues the uncertainty about its pulp mill project and fails to deliver details of its joint-venture partnership by the end of June, as
promised. The lack of finalisation on a joint-venture partnership provides an opportunity for a full rethink of the project.
European pulp producer Södra recently set minimum pre-conditions on any involvement with Gunns pulp mill, insisting any project must be 100% plantation-based, Forest Stewardship Councilcertified
and totally-chlorine-free.
“Södra has set the bar for environmental standards for the pulp mill. Gunns should immediately declare whether or not they will meet the standards set by Södra for the pulp mill,” said Paul
Oosting, spokesman for the Wilderness Society.
“Any joint venture partner should commit to minimum environmental standards as outlined by Södra. This will provide Gunns with an opportunity to go back to the drawing board and drop the
current proposal, which is clearly unattractive to responsible investors,” continued Mr Oosting.
“Gunns should also rule out the Tamar Valley as it is an inappropriate location for any responsible investor.”
The Australian public deserve to know whether Gunns is going to rethink their ill-conceived pulp mill proposal and work with the public and investors to fundamentally change the current plans,
which will have devastating impacts on the environment and the livelihoods of local communities,” said Mr Oosting.
In a statement made on 21st April, Gunns promised a June ASX announcement about a joint-venture partnership “when the terms of the agreement are finalised”. Today it announced it was dealing with a single potential joint-venture partner with the agreement “moving forward” rather than being finalised.
“Today’s release is inconsistent with the promises Gunns made to the markets several months ago and has failed to deliver the joint-venture agreement as promised,” said Mr Oosting.
“Tasmanians are overwhelmingly opposed to Gunns’ Tamar Valley pulp mill and people will continue to do what they can to protect their families health, livelihoods and Tasmania’s precious environmental assets: our forests, air and water,” concluded Mr Oosting.
