mill move fails to sway greedy investor

Mill move fails to sway critics
PHILIPPA DUNCAN-Mercury

April 25, 2010 08:20am

OPPONENTS say the Tamar Valley pulp mill will remain a leper to investors despite Gunns Limited's restructure.



The mill venture also gets a new project director, Timo Piilonen, who oversaw construction and operation of what some have called the world's most controversial pulp mill, the Metsa-Botnia mill in Uruguay.

Australian Greens senator Christine Milne said the retention of Mr Gay and appointment of Mr Piilonen would drive investors away.

"The pulp mill project he oversaw was so beset by protests and wrangling that it led to huge tension between Uruguay and Argentina, where a bridge is still blockaded three years after the mill started operations," she said.

"This will not reassure investors."

The UN's highest court rejected Argentina's claim last week that the Finnish-owned mill in Uruguay -- which is similar in size and technology to the one Gunns has proposed -- was polluting a river that ran between the two countries.

In Tasmania, the Wilderness Society has dismissed the Gunns restructure as a shuffling of the deck chairs and vowed to continue its campaign to stop the Tamar mill, or at least get it moved to the state's North-West and the technology upgraded.

Forestry Tasmania, which has a 20-year deal to supply wood to Gunns, said yesterday the company's announcement was expected and it was already looking for alternative markets for lower grade timber.

Spokesman Ken Jeffreys said: "It has been apparent for some time Gunns would be unable to take all wood available under our supply agreement this financial year.

"Gunns is an important customer but not FT's only customer."

Gunns will also sell its 28,000ha native forest estate to reduce debt and obtain social support for its forestry operations.

Gunns is also selling its Mitre 10 hardware franchises and Tamar Ridge wine arm, prompting acting Liberal leader Jeremy Rockliff to urge Gunns to ensure its workers were treated fairly in the sale process.