Mill critics ready to cancel Gunns pulp mill assault Matthew...

Mill critics ready to cancel Gunns pulp mill assault Matthew Denholm, Tasmania correspondent From: The Australian February 20, 2010 12:00AM


KEY opponents of the Gunns pulp mill are ready to embrace the $2.5billion project -- if it meets conditions set down by potential Swedish joint venture partner Sodra.
A leading opponent of the proposed mill, Sydney businessman Geoffrey Cousins, told The Weekend Australian he was ready to swing behind it, if Gunns accepted Sodra's conditions.

These included that Gunns obtain top-flight environmental certification for pulp wood from the Forest Stewardship Council. Gunns would also have to address marine pollution issues by adopting chlorine-free technology or an equivalent.

Gunns is already investigating FSC certification for its products -- a move many believe could end the logging of much of Tasmania's high-conservation-value forests.

It has promised to use only plantation pulp wood in the mill, and it is understood agreement may be possible on the chlorine issue. Sodra is understood to be eager to adopt further measures to address the issue of "fugitive emissions" -- smelly gases leaking from pipes.

Mr Cousins, who has spent thousands of dollars campaigning against the mill, said the time was right to show flexibility.

"If we can get a good, clean mill which is properly configured and engineered and takes proper account of the environmental issues . . . it would be bloody minded not to support them," he said.

He predicted a joint venture deal with Sodra would boost Gunns' share price by addressing market concerns with the company's image, related to governance issues and old-growth logging.

"Shareholders ought to seize this opportunity," he said.

FSC rules of "association" would make it difficult, if not impossible, for Gunns to retain certification for the mill while still logging high-conservation-value forests for woodchip exports.

Given that Gunns is the main customer of Forestry Tasmania, some industry observers believe a joint venture deal with Sodra based on FSC accreditation could help bring conservation gains that green groups have sought for 30 years.

That would prove a tempting carrot for groups such as The Wilderness Society to back a Sodra-Gunns deal and could cause anti-mill groups to split.

Adding to that pressure are Gunns' attempts to find a less demanding alternative joint venture partner to Sodra.

It is understood Gunns is in discussions with several Asian firms seen by conservationists as lacking Sodra's strong environmental credentials.

Wilderness Society spokesman Paul Oosting said Sodra's involvement in the mill "could play a constructive role in ending the conflict over Tasmania's forests".

However, there were still key obstacles to backing the mill, including its location in the Tamar Valley tourism and wine district, and a flawed state assessment process.

Local group Pulp the Mill said it, too, would welcome Gunns meeting Sodra's requirements.

Gunns, which insists the mill is already "world's best practice", said discussions with Sodra and with the FSC were "ongoing". Sodra was not available for comment.