Tasmanian government’s $60.7m forestry deal

The state government has sold 29,000 hectares of hardwood plantations, to help meet the “sale objectives” of the transition from Forestry Tasmania to Sustainable Timber Tasmania.

Resources Minister Guy Barnett made the announcement via a video on Premier Will Hodgman’s Facebook page on Thursday morning.

Mr Barnett said the $60.7 million deal went to Reliance Forest Fibre, which has an ABN registered in the ACT.

Mr Barnett said the buyer would establish a “local management team” and use Tasmanian contractors.

He called it “a very good outcome for Tasmania’s forest industry, our economy and taxpayers, and well above expectations”.

Mr Barnett said the sale met the objectives of paying down the debt to move Sustainable Timbers Tasmania, which was formerly Forestry Tasmania, to full sustainability.

He added that the deal only included the sale of the trees, not the land.