NORTHERN timber mills are set to benefit from a $21million release of funding under the forest peace deal.
Bell Bay timber mill Artec has received $5.5million to expand its woodchip output.
Resources Minister Bryan Green announced the funding yesterday, alongside the finalisation of the $15 million Tasmanian sawlog buyback program.
Mr Green said the funding for Artec would help it make its Mobil Road plant more efficient.
George Town Council approved Artec's expansion plans in March.
The proposal will see it increase woodchip production from 400,000 tonnes a year to 600,000 tonnes.
The Exeter Timber Mill and the Kelly Gang Mill at Deloraine are among those that have applied for the program to buy back all or part of their timber contract, reducing the state's sawlog quota by 26,500 cubic metres to meet the limit of 137,000 cubic metres total sawlog production imposed in the Tasmanian Forestry Agreement.
Mr Green also announced a $750,000 grant to help fund a $1.05 million project by Forcett sawmiller Torenius Timber to boost its production capabilities by building a solar kiln and new finger- joining line.