Matthew Denholm Australian
TIMBER company Gunns says it will strike a deal with a joint venture partner for its $2.2 billion Tasmanian pulp mill by the end of June and begin construction within nine months. Gunns chairman John Gay told The Australian last night that despite scepticism about the project’s prospects, construction at the Tamar Valley site would begin in six to nine months. Speculation is growing in industry and environmental circles that after a long hiatus because of the global financial downturn, Gunns is moving towards a start on the bleached eucalypt mill. Mr Gay said that although no announcement was likely in the immediate future, Gunns was likely to have a firm idea on final joint venture partner options by the end of this month. “We are down to three (potential partners) and we will probably be down to two by the end of April,” Mr Gay said. “And by the end of June, we would expect to have a memorandum of understanding commence with one player. “The mill will get built, it will have a joint venture partner and Gunns will have a 50 per cent-plus (stake),” he said. Gunns is understood to have been talking to potential Chinese partners, including Nine Dragons Paper Holdings, and Scandinavian firms Sodra and Stora Enso. Sodra has not responded to repeated requests for comment, Stora Enso late last year ruled out any involvement, and Nine Dragons has also played down its interest. … The Australian understands that the Australian Stock Exchange, responding to concerns about continuous disclosure requirements, has received information to support Mr Gay’s statements about joint venture partner negotiations.
Mercury: Gunns higher on mill news
Earlier on Tasmanian Times: Gunns a step closer to resurrecting pulp mill
