FORESTRY company Gunns Ltd has indicated it may be a step closer to securing the finance for its proposed $2billion Bell Bay pulp mill.
Three potential investors are now undertaking due diligence on the project, chief executive Greg L'Estrange said yesterday.
Mr L'Estrange would not make any further comment about the potential investors or the timeline for an announcement about the outcome.
"It's a detailed process and when we've finished that, we can update the market," he said.
"It's a long and involved process for an investment of this magnitude and complexity.
"We will be in business with this partner or partners for the long term, so it's important that it's done in a measured way rather than pushing it through."
Swedish paper and pulp company Sodra was originally tipped as a potential investor. However, it released a statement in June to say that any investment would need to use 100 per cent plantation forest, meet Forestry Stewardship Council standards and use environmentally friendly bleaching technology, preferably totally chlorine-free.
The proposed Bell Bay pulp mill will be elemental chlorine- free.
Mr L'Estrange said the mill would use 100 per cent plantation fibre and was progressing with international Forest Stewardship Council accreditation for its wood supply, in addition to its Australian Forest Standards national certification.
"It's not about certification so much as engaging with end users and stakeholders," he said. "We're looking for improvements and suggestions from a range of people, including those we have been in conflict with."
Mr L'Estrange said that work in respect of the maintenance of environmental permits was ongoing, and construction of the mill was ready to begin once financial backing was secured.
"The recent market for export woodchips has reinforced the merits of a sustainable, plantation-fed mill," he said.
"In a period where wood fibre value has remained static in real terms, pulp value has increased significantly with a strong outlook."
Gunns yesterday released its final results for financial year 2009-10, recording a net profit after tax of $28.5 million, an almost 50 per cent drop on the previous year's profit.
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