Today Tassal announced a capital raising to support investments including $53 million over three years to establish farming operations in Okehampton Bay and Storm Bay. According to the state’s peak environmental group, Environment Tasmania, investors need to be aware of the risks surrounding Tassal’s controversial plans to expand onto Tasmania’s stunning east coast.
“Tassal has yet to secure community support for its Okehampton Bay development, which is adjacent to an endangered whale migratory route in key tourism, sailing and fishing country on Tasmania’s stunning east coast,” said Laura Kelly, Environment Tasmania.
“Tassal’s land based infrastructure developments are being challenged in the Tasmanian Planning Commission and Environment Tasmania has referred plans to have local council pay for the costs of its dam to the state’s Integrity Commission, after a leaked briefing note from TasWater, which raised concerns that Tassal’s dam will worsen drought conditions, was ignored following an offer made by Tassal to TasWater of 200 mega litres of free water a year,” Ms Kelly said.
“Investors would be wise to keep their powder dry until Tassal delivers any measure of certainty that its Okehampton Bay plans can secure social licence, and political support for its preferred biomass for Okehampton is guaranteed,” Ms Kelly said.
“Opposition from the local community, recreational fishers, the tourism industry and environment groups to Tassal’s ill thought-out Okehampton Bay development is only going to increase in the lead up to the state election,” Ms Kelly said.
“Uncertainty about Okehampton Bay biomass only compounds uncertainty regarding Tassal’s Macquarie Harbour biomass, with the company currently farming over a dead zone next to a World Heritage Area and decisions by State and Federal Government’s to allow this subject to legal proceedings,” Ms Kelly said.
“Biomass cuts, dead zones, legal proceedings and a growing and diverse community campaign will eventually prevent Tassal’s plans to spread their damaging, intensive developments further around Tasmania’s stunning coastline.”
“International demand might look like an opportunity, but investors would be wise to be mindful of the crisis in the industry that has caused this demand – toxic algal blooms in Chile and disease in Norway. There are currently toxic algal blooms at Tassal’s Okehampton Bay sites and the company’s dead zone in Macquarie Harbour raises serious questions about just how reliable the companies approach to risk management is,” Ms Kelly said.
Laura Kelly, Strategy Director, Environment Tasmania
