Gunns - Wood Supply Agreement Extended
2008-12-01 09:07:00+10:00
1 December 2008 Company Announcements Platform Australian Stock Exchange Limited WOOD SUPPLY AGREEMENT EXTENDED Integrated forest products company Gunns Limited today announced its Wood Supply Agreement with Forestry Tasmania has been reviewed to extend provisions relating to the Bell Bay mill. Gunns has issued similar announcements 58 times before, most recently about 0 minutes ago on Wednesday 19 November 2008. The announcement 'Wood Supply Agreement Extended' was issued to the ASX on Monday 01 December 2008. The share price for Gunns was $0.965 trending down at the time of the announcement. [Notice Type: Other - not one of the above]
2008-12-01 09:07:00+10:00
1 December 2008 Company Announcements Platform Australian Stock Exchange Limited WOOD SUPPLY AGREEMENT EXTENDED Integrated forest products company Gunns Limited today announced its Wood Supply Agreement with Forestry Tasmania has been reviewed to extend provisions relating to the Bell Bay mill. Gunns has issued similar announcements 58 times before, most recently about 0 minutes ago on Wednesday 19 November 2008. The announcement 'Wood Supply Agreement Extended' was issued to the ASX on Monday 01 December 2008. The share price for Gunns was $0.965 trending down at the time of the announcement. [Notice Type: Other - not one of the above]
Wood Supply Agreement Extended
Monday 01 Dec 2008
1 December 2008
Company Announcements Platform Australian Stock Exchange Limited WOOD SUPPLY AGREEMENT EXTENDED
Integrated forest products company Gunns Limited today announced its Wood Supply Agreement with Forestry Tasmania has been reviewed to extend provisions relating to the Bell Bay mill. The agreement was signed last year and delivered a 1.5 million tonne a year pulpwood supply to Gunns over a 20-year term. The agreement covers supply to Gunns processing sites in Tasmania, with a component of the resource planned to supply the Bell Bay Mill development in the future. The agreement contained provision for either party to re-negotiate if construction of the Bell Bay Mill was not commenced by 30 November 2008. Due to the significant investment and commitment that Gunns has made on the project to date of more than $100 million, Forestry Tasmania has agreed to extend this provision in the agreement to 30 November 2010. While on site construction of the mill is projected to commence well before this date, both parties agreed that this extension was appropriate to provide stability to forest contractors and working families in the industry. Executive Chairman John Gay said: “This review brings additional certainty for the industry, by effectively taking timelines for construction of the mill off the agenda in what are difficult economic conditions.” “It is important that people working in the industry are not under pressure and focussing on short-term timelines.” “This is a vote of confidence in the Bell Bay Mill, which will be one of the most efficient and environmentally friendly mills in the world, creating more than 2000 new jobs during construction and 1600 new jobs during operation.” “We are pleased to have worked through this process with Forestry Tasmania to achieve an outcome which recognises the substantial investment that the company has made in bringing the Bell Bay Mill project to this point, having completed detailed engineering design and committed to a rigorous environmental assessment process over a four-year period.” “The extension also recognises the long term value of the Bell Bay mill project to the Tasmanian forest industry.” “We can reconfirm our advice to the market that the Bell Bay Mill project remains on track, with Gunns continuing to negotiate with a banking syndicate to reach financial close, as well as continuing talks with potential joint venture partners.” Further information:Investors Wayne Chapman – 03 6335 5201 Media Matthew Horan – 0403 934 958
Registered Head Office: 78 Lindsay Street (PO Box 572) Launceston Tasmania Australia 7250 Telephone: 03 6335 5201 Int: +613 6335 5201 Fax: 03 6331 7587 Int: +613 6331 7587
Monday 01 Dec 2008
1 December 2008
Company Announcements Platform Australian Stock Exchange Limited WOOD SUPPLY AGREEMENT EXTENDED
Integrated forest products company Gunns Limited today announced its Wood Supply Agreement with Forestry Tasmania has been reviewed to extend provisions relating to the Bell Bay mill. The agreement was signed last year and delivered a 1.5 million tonne a year pulpwood supply to Gunns over a 20-year term. The agreement covers supply to Gunns processing sites in Tasmania, with a component of the resource planned to supply the Bell Bay Mill development in the future. The agreement contained provision for either party to re-negotiate if construction of the Bell Bay Mill was not commenced by 30 November 2008. Due to the significant investment and commitment that Gunns has made on the project to date of more than $100 million, Forestry Tasmania has agreed to extend this provision in the agreement to 30 November 2010. While on site construction of the mill is projected to commence well before this date, both parties agreed that this extension was appropriate to provide stability to forest contractors and working families in the industry. Executive Chairman John Gay said: “This review brings additional certainty for the industry, by effectively taking timelines for construction of the mill off the agenda in what are difficult economic conditions.” “It is important that people working in the industry are not under pressure and focussing on short-term timelines.” “This is a vote of confidence in the Bell Bay Mill, which will be one of the most efficient and environmentally friendly mills in the world, creating more than 2000 new jobs during construction and 1600 new jobs during operation.” “We are pleased to have worked through this process with Forestry Tasmania to achieve an outcome which recognises the substantial investment that the company has made in bringing the Bell Bay Mill project to this point, having completed detailed engineering design and committed to a rigorous environmental assessment process over a four-year period.” “The extension also recognises the long term value of the Bell Bay mill project to the Tasmanian forest industry.” “We can reconfirm our advice to the market that the Bell Bay Mill project remains on track, with Gunns continuing to negotiate with a banking syndicate to reach financial close, as well as continuing talks with potential joint venture partners.” Further information:Investors Wayne Chapman – 03 6335 5201 Media Matthew Horan – 0403 934 958
Registered Head Office: 78 Lindsay Street (PO Box 572) Launceston Tasmania Australia 7250 Telephone: 03 6335 5201 Int: +613 6335 5201 Fax: 03 6331 7587 Int: +613 6331 7587
