A draft proposal has circulated among conservation and industry groups involved in forestry peace talks, and - as reported in The Examiner two weeks ago - it includes in- principle support for a Tasmanian pulp mill.

However, the current proposal in the Tamar Valley is still a sticking point, with Gunns moving forward with it and environmental groups vowing never to support it as it stands.

When asked if it would consider a new proposal on the same site, Gunns had no comment yesterday.

But previously the company has said it intends to go ahead with the mill now that it has all the approvals.

It also reported last week that three partners were working with due diligence on the project.

The Wilderness Society and the Tasmanian Greens yesterday said they were not opposed to the principle of a pulp mill in the state, but could never support the existing Tamar Valley model.

Greens leader Nick McKim said he would look at another proposal in the Tamar Valley if Gunns put one up.

"I think it's unlikely that there will ever be a pulp mill built in the Tamar Valley given what has happen recently," he said.

"As I said, we don't support the current proposal, but we will look at any future proposal - if there is - one for a pulp mill in Tasmania on a case-by-case basis and with an open mind."

Wilderness Society national forest co-ordinator Tim Birch said the talks were about preparing a platform of principles for future negotiations.

"It should be made very clear, that if we reach agreement on these principles it will not give a green light to the Tamar Valley pulp mill," he said.

Environment Tasmania's Russell Warman said there was conservation support for a community-backed pulp mill. "We understand that the logging industry sees a pulp mill as an important part of its future, but the proposed mill and its approval process has been damaging and divisive in the community," he said.