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GUNNS Pulp Mill
Tue, 06/05/2008 - 16:40
Welcome to Tasmania, the 'can do' state on forest management?
Treasurer defends timing of Gunns deal release
Gunns is not worried about the future timber supply, but the ANZ wanted surety. (ABC News: Cate Grant)
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Tasmania's Treasurer has rejected suggestions a secret
deal between the State Government and Gunns was deliberately kept from
the public until after last weekend's upper house elections.
The deal provides up to $15 million compensation for Gunns if future
legislation interferes with the supply of timber for its planned pulp
mill.
It was signed back in January, but the Mr Aird announced it yesterday.
He has told ABC Local Radio the timing of the recent polls in Huon and Rosevears and the announcement are unrelated.
"The timing and release of these things is always problematic, if
you release it on Friday people say you're trying to hide it, if you
release it on Sunday people say you're trying to promote it," he said.
"Quite frankly getting through all the considerations to get into a
position to make the announcement, it just fit in yesterday, and there
was no other consideration taken."
Gunns Chairman John Gay says the deal was needed to appease financiers for the planned Tamar Valley pulp mill.
Deal 'uncommon'
Financial adviser with Shadforths Will Homan says it is not common
practice for a State Government to sign a multi-million dollar
compensation deal with a private company.
"The bit that you find unusual is that the State Government has come
out and put a guaranteed payment, that is a compensation payment, that
lasts out for the next 20 years," he said.
"And although the bank requires certainty, what's really taken place
is that the government has now put this compensation position in place
which is not only for the current government but potentially future
governments."
Wed, 17/09/2008 - 15:11
#2
Update
Today (17/9) Gunns shares have dropped to their lowest price since ~April 2002 - just $1.15
Mon, 29/06/2009 - 13:57
#3
Pulp Mill update
Gunns promised it would announce its partner for the proposed pulp mill before the end of this financial year. Today (29th June), Gunns announced that they have 'identified' a potential joint-venture partner but declined to name it. From previous speculation the two front runners are the Swedish company, Sodra and the Chinese (Hong Kong based) Nine Dragons Paper. The Swedish company wants the pulp mill to source 100% of its pulp from plantations and for the mill to be chlorine free. Gunns current proposal would make it difficult to meet either of these conditions.
Thu, 05/11/2009 - 09:12
#4
Tas Govt tables new bill to extend Gunns timeline
A Bill has been tabled in the Tasmanian State Parliament which gives Gunns an extra two years before it needs to start building the pulp mill.
This flies in the face of the Premier's comments when he took office. David Bartlett stated at the time that there would be no more government assistance and no further extensions. The Resources Minister (David Llewellyn) admitted that the approval laws passed in 2007 may have already expired in on 30th August this year.
The Bill was tabled on Melbourne Cup Day, fueling speculation that the State Government was hoping to slip it in with minimal media attention.
Fri, 06/11/2009 - 09:27
#5
Debate cut short
The Tasmanian State Government guillotined debate on the new laws that give Gunns an extra two years to start building the pulp mill.
"We have been given one hour to represent the people of Tasmania who don't want this mill to go ahead and want to know if Gunns illegally cleared land or not," Mr McKim (Greens) said.
The Labor Government voted down a series of amendments to the Bill, including the requirement for Gunns to get a full independent audit of CO2 emissions and for detailed air modelling to be conducted before the mill is built.
The Liberals voted with the Government in support of the Bill but did not vote in favour of guillotining the debate.
Sat, 30/01/2010 - 13:04
#6
Case ends for Gunns 20!
Gunns has paid $155,088 in defendant legal fees to end its court case against the Gunns 20!
Company Secretary Wayne Chapman said the company had accepted an offer of settlement made by the remaining four defendants in the proceedings, which Gunns initiated in 2004.
"This is a commercial decision to avoid the need for a lengthy and expensive court case," he said.
"The settlement involves the payment of a total of $155,088 towards the legal costs of the defendants, and has the effect of disposing of all remaining claims in the litigation.
"Gunns instituted the proceeding to protect its interests, and those of its employees and contractors, and to enable it to conduct its forestry business without disruption."
The above is based on an article in the Launceston Examiner dated 29th January 2010. It appears to be a great victory for not only for those fighting for the forests, flora and fauna of Tasmanian but also for democracy and against SLAPP cases. Gunns has spent around $3 million in attempting to shut down dissent.
Is it coincidental that earlier this week Gunns (along with Forestry Tasmania) announced that they would be seeking Forest Stewardship Certification? Are Gunns genuinely attempting to clean up its act or is it part of a plan to encourage Sodra to partner with them in the proposed pulp mill?
Tue, 23/02/2010 - 12:35
#7
Gunns profit slashed
Gunns has announced a 98% drop in an after tax profit of just $400,000 (down from $33.6 million last year). Its share price has been savaged - down to 67c.
There is speculation that the low price will attract a takeover offer.
The company also informed the stock exchange that it is planning a restructure, possibly separating its woodchipping from it s pulp mill and plantations. This is potentially bad news as the pulp mill part could present itself as a 'clean' company to Sodra whilst the other part of Gunns continues to log native forests.
Lawyers, Gunns & Money - Gunns share price has dropped from around $2.40 a week or so ago to close yesterday (19/8) at $1.75. This is the lowest price since 2002 and also compares unfavourably to price of $3.90 at the end of 2007. Analysts are saying that the price drop is as a result of the NPAT (fiscal 2008 - unaudited) being down 24% on the previous year. The results do not augur well for the new pulp mill.