Robert Gottliebsen Business Spectator, 4 Sep 2008
While all those around him were cheering the result of the Gunns institutional placement, chairman John Gay must have wept a little on the inside.
and …
Given the Greens’ opposition, and the strong opposition in parts of Tasmania, it is not going to be easy to attract partners for the pulp mill. But there are three strong candidates – two in Europe and one in Asia.
All are in the pulp business and are used to being attacked.
and
As I pointed out previously (Strength of Gunns Plan, July 24) if the pulp mill starts in about two years’ time then the company will have enough plantation timber to provide only half the needs of the pulp mill for the first five years. In the following five years the availability of plantation wood rises steeply and after 10 years Gunns will be in a position to supply all its own wood – and that’s the way to maximise profits. The plan is to fill the gap with regrowth timber – forests that have been harvested at least once and replanted. But timber could also come from other sources including Gunns Auspine forests in South Australia, although this would affect profits.
The issue of harvesting native forests is a nonsense. The only issue that can be debated is whether there should be a pulp mill in Tasmania.
Footnote: John Gay and his family have 18 million Gunns shares. He took up 500,000 shares in the issue and will take up additional shares in the shareholders entitlement issue.
