Bad news for Tasmania's precious forests

The Wilderness Society (Tasmania) Inc
Media Release
15 August 2008

Gunns called on to release details of pulp mill wood supply

On Friday 15 August 2008, Gunns announced to the Australian Stock Exchange[1] in a market update that it plans to sell approx. $170 million worth of plantations to help reduce debt. Gunns had tried to claim recently it would use the plantations as wood supply for the pulp mill, despite indicating in its environmental impact statement that the pulp mill would be 80% native forest based.
 
“It is clear from this latest move by Gunns that Tasmania’s irreplaceable native forests are what Gunns intends to feed into its pulp mill if it is allowed to go ahead,” said Mr Paul Oosting, Pulp Mill Campaigner for The Wilderness Society.
 
“Gunns’ has recently tried to claim that they have enough plantations to supply the pulp mill, now they are selling them off to deal with their high levels of debt. This is bad news for Tasmania’s native forests which will face increased logging pressure,” said Mr Oosting.
 
“A native forest based pulp mill will be a climate change disaster. Tasmania’s native forests are some of the richest stores carbon on the planet, logging them to feed the pulp mill would release totally unacceptable levels of greenhouses gases,” said Mr Oosting.
 
“Gunns share price has fallen by just over 20% in the last three days of trading. Their banker the ANZ doesn’t support the pulp mill and their preferred builder believes that it is never going to happen. Unfortunately it appears Gunns is trying desperately to push ahead with this environmentally destructive and unpopular project nonetheless.”
 
The Wilderness Society is calling on Gunns to publicly release the updated and accurate details of where the wood supply for the pulp mill will come from, given they are selling of vast areas of plantations.
 
“Gunns need to come clean and tell the market and the public the truth, that this pulp mill is reliant on destroying Tasmania’s native forests,” concluded Mr Oosting.  

The Wilderness Society wrote to Gunns a month ago to seek clarification about the wood supply issue. It is yet to receive a reply.

[1] http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00869839