More detail wanted on woodchip mill proposal

Friday 22 Apr 2016

A proposed plantation woodchip mill and export facility in Tasmania's south could come too late for fed-up private foresters, the Tasmanian Farmers and Graziers Association (TFGA) warns. Businessman and truck driver Darren Oates has revealed his AU$30 million plan to build a mill and port at an unnamed location between Hobart and Triabunna, on the east coast.

But the TFGA said it wanted details, as farmers who had planted private forests had suffered badly with the collapse of managed investments. Mr Oates is yet to reveal where his proposed port will be built. "We've got a deep water port, it's got two deep water access ports, so we'll be looking at setting up a chip mill and a loading facility on one spot," he said. Mr Oates said he was seeking guarantees of 1 million tonnes of plantation wood a year from Forestry Tasmania and 38,000 hectares of private forest south of Campbell Town.

TFGA's Peter Skillern said private plantation owners were awaiting details of Mr Oates proposal, as well as the outcome of the State Government's attempt to find a solution to the southern residues bottleneck. Since the closure of the Triabunna mill in 2011, woodchips and other residue have had to be trucked to the north to be exported, costing millions of dollars each year.

The government-run process to find a private sector solution to the problem has been underway since the middle of last year. A successful tender is yet to be announced prompting concern from parties involved in the process that it is taking too long. Premier Will Hodgman said an announcement would be made soon. The Government has already ruled out a woodchip export facility at Macquarie wharf in Hobart. However, another option may be containerised woodchip exports from Hobart.

Source: ABC

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