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Gunns has awarded the contract for bulk earthworks at its Bell Bay pulp mill site to a Tasmanian joint-venture.
The contract has been awarded to John Holland and Hazell Bros, which has a combined workforce of more than 500 in Tasmania.
Gunns managing director Greg L'Estrange said the joint venture won the contract against a strong field of local and interstate suppliers.
“What the tender process showed was that Tasmanian companies are smart in how they play to their strengths and build alliances to provide highly competitive bids for what is a significant local contract,” Mr L’Estrange said.
“The bulk earthworks are clearly substantial progress towards bringing the mill to reality, and Gunns will do it with a team using local expertise.”
Mr L'Estrange said that the bulk earthworks will advance the access road construction and site clearing, which Gunns completed last year, by resurfacing the site and laying the platform for the mill processing plant.
He said works are expected to take seven months to complete.
According to Mr L'Estrange, the company has spent more than $200 million on the mill to date, including the approval process, roading and vegetation clearing, management plan preparation and monitoring and on major materials and equipment, such as turbines and generators awaiting installation.