"We of course see the Triabunna facility as absolutely critical for the native forest industry into the future," she said.

The Economic Development Department said in November that the closure of the mill would be "catastrophic" for the industry, and its operation was "essential".

Ms Giddings said the forestry statement of principles supported the mill at Triabunna and she took some heart from the fact the sale contract contained a clause stating the mill should operate in line with the principles statement.

Ms Giddings said Deputy Premier Bryan Green's office had got a call from Gunns chief executive Greg L'Estrange yesterday morning confirming the sale of the mill.

Opposition Leader Will Hodgman said the decision to sell the mill to Jan Cameron and Graeme Wood was due to pressure from the Greens.

"The Greens have held a gun to Labor's head over the Triabunna mill sale and Labor has surrendered," he said.

Mr Hodgman said the Liberals had never supported the statement of principles process as they believed it would lead to a "massive, rapid and economy-destroying collapse of the forestry industry." "Sadly, it looks like we are being proven correct," he said.

Greens leader Nick McKim welcomed the sale as a "great day" for Tasmania's forests - and for the transition to a new economy. He said the Greens had never supported the Aprin deal, and it was no surprise it fell over.

Mr McKim said Triabunna should look to recover and turn itself into a tourist destination like Strahan.

Aprin co-owner Ron O'Connor said his difficulty in raising finance was due in large part to the public campaign run against his family business by a number of politicians, including the Greens.

"We are currently seeking advice from our lawyers and financiers as to whether there is any chance to salvage the situation and secure the mill to save our industry," he said.