Gunns Pulp Mill Wood Supply Agreement

A contract between Forestry Tasmania and Gunns Limited for the supply of pulp wood to the Bell Bay pulp mill has been finalised with no changes to the Heads of Agreement publicly released last year.

Forestry Tasmania’s Executive General Manager Dr Hans Drielsma said the contract negotiations were completed in December and finalised over the following weeks. It is now available on the www.forestrytas.com.au web site.

“The contract puts the Heads of Agreement into a legally binding form and spells out in legal terms the obligations and responsibilities of both parties.”

"The two parties have acted with unprecedented transparency. The release of this contract goes well beyond what would have been released under Freedom of Information.

Dr Drielsma said the contract will provide reassurance to those who had been misled into believing roading and harvesting arrangements under the contract would transfer ownership of some areas of state forest to Gunns.

“This contract shows that no roading or harvesting can be undertaken on state forests without FT’s approval. In fact, any roads built and maintained by Gunns will be handed to FT in good condition or rehabilitated to native forest when the roads are no longer required by Gunns.

“Regeneration of harvested coupes to native forest has and always will be undertaken by FT.”

The two parties have also consolidated contracts for other wood products including saw and veneer logs, hardwood joint product and biomass into a single contract that has also been placed on the website.

Dr Drielsma said the price and quantities in the consolidated contract would remain confidential.

“FT is about to enter into mid term negotiations with other customers and the release of this information would jeopardise FT’s negotiating position,” Dr Drielsma said.


David Tuck, Corporate Relations 6233 8249
ENDS
26 February 2008