Forestry company Gunns
(ASX:GNS) has confirmed a pulp mill planned for Tasmania will only use timber from plantations.
This week Gunns was given approval to take control of nine former Great Southern timber investment schemes, allowing Gunns access to the timber it needs for a $2.2 billion pulp mill planned in the state’s Tamar Valley.
The use of timber from plantations brings Gunns a step closer to meeting environmental requirements set by likely joint venture partner Sweden’s Sodra in the Tasmanian pulp mill project.
Gunns posted a $56 million net profit in 2009.
