GUNNS said a pulp mill it planned to build in Tasmania would use only timber from plantations, bringing the forestry giant a step closer to meeting requirements of likely joint-venture partner Sweden's Sodra Skogsagarna.
This week Gunns formally got the nod to take control of nine Great Southern pulpwood managed investment schemes, giving the company access to the timber it needs for a $2.2 billion pulp mill planned for the Tamar Valley, The Australian Financial Review reports.
At its annual meeting in November, Gunns named Swedish pulp and paper giant Sodra as a preferred partner in the project.
Sodra, a co-operative of Swedish forest owners, has set benchmarks for any pulp mill development in Australia, insisting it use an environmentally friendly, chlorine-free bleaching process, be 100 per cent plantation-based and Forest Stewardship Council certified.
Gunns chairman John Gay said yesterday that until now it was not possible for Gunns to guarantee supply to the mill of 100 per cent plantation timber until five years after commencement of mill operations.
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