Lack of joint-venture partner deal allows for pulp mill rethink

The Wilderness Society (Tasmania) Inc
Media Release
29 June 2009

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 Council-certified 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.