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 Finance for pulp mill is close, says Gunns 

Finance for pulp mill is close, says Gunns

21 Apr, 2009 11:25 AM
TIMBER company Gunns Ltd says it has `substantially progressed its negotiations' with potential joint venture equity partners for the finance of its proposed $2.2 million Bell Bay pulp mill project.

In statement to the Australian Stock Exchange this morning the company said a process was being conducted to select a partner to negotiate a joint venture agreement.

"The company will provide a further market update when the terms of the agreement are finalised, which is expected to be in June, 2009."

Most of the environmental and planning approvals for the project are in place with the Federal Government requiring the company to undertake hydrodynamic modelling before the mill can start operating.

Gunns announced in February it was calling tenders for the modelling. Construction of the mill will take several years.

Anti-pulp mill campaigners moved their protest activity to Bell Bay at the weekend by unfurling a 60m-long banner at the site.

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Date: Newest first | Oldest first
Great News - Go the Pulp Mill! Will be great for Tassie. We have the resource and excellent environmental standards which will ensure a new mill like this starts off on the right foot.
Posted by Marcus, 21/04/2009 1:15:16 PM
What planet are you from Marcus? The whole point is that all environmental, economic, health and every other standard for the Pulp Mill were by-passed by the universally condemned "Fast Track" process of the PMAA. If these fools ever manage to build this on-the-cheap, polluting monstrosity and destroy Brand Tasmania's clean and green image once and for all along with the fishing, wine and hospitality industries of the North it will be a disaster for Tassie ... except of course for the Board members of Gunns.
Posted by Keith, 21/04/2009 3:19:55 PM
Well someone's telling porkies and according to some in depth ABC journalism it sounds like Gunns will have finance when hell freezes over. the fear mongering is over. It ain't gonna happen. Every time they get another NO response the Gunns brigade comes rushing out hysterically announcing how close they are to *closing* the fictitious deal.
Posted by Wendy, 21/04/2009 6:30:43 PM
Yeah right Keith, Gunns and a joint partner are going to risk billions of dollars on a project that can be shut down aweek after it starts if it exceeds enviromental standards. What planet are you from. The hysterics of the likes of yorurself are reminicent of the stuffed up mess that Tassie was in the earlly 90s.No work no futures and a State heading backwards. I have lived in this State all my life (60+ yrs) and have never Known any project to undergo so much scrutiny all without one substantiated fact from a most radical pack of lobbyist ,unwilling to accept the decisions that they would have Gunns submit to if this hysterical group had got their way. GET OVER YOURSELVES !!!
Posted by wally the worker, 21/04/2009 7:37:14 PM
Like Marcus says, this is great news. As for doubters on the environmental front, you are simply lying. However, it's hard not to be concerned when the greenie tactic is to tell you 18 times that something that is blue is in reality black. By about the 12th time you know that it is blue, but a little part of you think's that it is black. While I don't fully agree with them pulling out of the PRDC process, I have to say on Gunns for perservering with all the viterolic attacks that they have to endure from people and entities with a no progress mentality. From the way the PRDC carries on, maybe they made the correct decision. From what I can tell a couple of the PRDC people were a tad off the planet. All our neighbours and people we know in the Tamar Valley now want it to be built. We know lots of people, so I don't know where these numerous anti pulp mill people reside (unless of course they are safely esconded in an upper class environment).
Posted by Tamar Valley Lover, 21/04/2009 7:48:26 PM
Hang on a bit. Gunns statement to the ASX simply says "a process is being conducted to select a partner to negotiate.." That's like saying "we've sent out party invites, and if we get a RSVP we'll organise some catering" GUNNS STATEMENT SAYS ABSOLUTELY NOTHING!!!!
Posted by Steven Jurgeit, 22/04/2009 8:35:48 AM
It's in Gunns interests to keep their share price up with frequent up-beat market announcements. If their share price, and thus the market capitalisation of their company, gets too low then they're at risk of being forced to pay off more of their loans as banks don't like excess exposure. The mill project has already cost tens of millions of taxpayer dollars that could have rescued the LGH and other key public services. If Gunns builds the thing, then we're looking at hundreds of millions per year in various subsidies and low cost resources. I don't really believe that Tasmania can afford it.
Posted by Worldly, 22/04/2009 10:59:01 AM
What's all the fuss about? For an economy to grow you must have industry - i.e. employment. Bell Bay is an industrial area. I recently toured the Tamar Valley with a view to purchasing a retirement property. I do not wish to live overlooking tidal mudflats - with the chance of sandflies in warm weather. We looked for wineries but they were very thin on the ground and quite small scale. The pulp mill proposal looks to me like the best thing that could be done with the Tamar Valley.
Posted by Frank, 22/04/2009 12:55:22 PM
Hang on Wally, you have it a little wrong. The mill will definitely NOT be shut down if it pollutes, only fined. There is no shutdown provisions. Tamar Valley Lover, I live here on the Tamar and don't know many here that want it. As it is it is another trumped up story. They are no closer to obtaining finance than they were 3 years ago. Read the statement to the ASX - 'smoke and mirrors', 'weasel words. All maybes.
Posted by China, 22/04/2009 5:25:58 PM
Hey China go check your facts.I know that facts are something you lot dont like but their is a shutdown provision old China.
Posted by wally the worker, 22/04/2009 10:50:43 PM
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