A NEW anti-pulp mill protest group emerged today as timber company Gunns reaffirmed its commitment to the $2.2 billion Bell Bay project and its shares took a big tumble on the stock market.
A mock protest by the self-styled Climate Crime Scene Investigation Unit outside Gunns Lindsay St headquarters at 1 pm drew a police presence but caused little disruption.
Spokesman Ali Alishah said his group wasn't aligned to any other organisation and was highlighting the climate damage of forestry operations.
Gunns shares fell to 83 cents apparently following comments from former Premier Paul Lennon to a parliamentary inquiry yesterday about the pulp mill.
Mr Lennon said: ``unfortunately it appeared that the project may not be alive _ certainly it's been shelved for a period of time''.
With the market generally down in morning trading today Gunns was one of many shares which were down.
In a statement to the stock exchange this afternoon the company said the pulp mill remained on track to begin construction once financing was secured.
Gunns chairman John Gay said media reports claiming the mill was not proceeding were inaccurate.
``Contrary to the reports, the company is continuing to progress with the project _ we are continuing to work hard to satisfy Federal Government environmental approvals and to secure financing,'' Mr Gay said.
``Final Federal Government approval is expected in January, 2009, with construction to commence on financial close.
``In the past weeks we have continued to progress discussions with potential joint venture partners for the mill.
``Our discussions have been positive and are continuing on a basis which is consistent with our objective of reaching agreement on key terms early in the 2009 year.
``The company is working towards a financing structure which will not require additional equity to be raised from shareholders.''
Mr Gay said the mill would comply with the most stringent environmental standards of any industrial project in Australia.
``This has been a comprehensive process and represents a new international benchmark in good and sustainable environmental outcomes,'' he said.
``The mill has been designed to use plantation fibre, and our goal is to progressively increase the plantation sourcing to reach 100 per cent.
``We believe this will be one of if not the most environmentally friendly pulp mill in the world, allowing significant value adding in Tasmania, rather than shipping woodchips offshore to potentially less environmentally friendly mills,'' Mr Gay said.
He said that the negotiation of a plantation sale transaction was proceeding and was expected to raise about $170 million.
Email a friend