Timber company cleared of any contract breaches
Friday 2 Oct 2020One of Australia's largest integrated commercial plantation companies has been found to be fully compliant with domestic log supply and export lease conditions following an independent government-commissioned audit.
It was the first independent probe into the operations of South Australian-based company OneFortyOne since it purchased 110,000 hectares of radiata pine plantation harvesting rights from the South Australian Government.
The audit findings come amid ongoing concerns from some sections of the forestry industry over thousands of tonnes of wood fibre being exported through deep-sea ports at Melbourne and Portland bound for China by multiple Green Triangle plantation growers.
OneFortyOne — headquartered at Mount Gambier — operates one of the largest softwood sawmills in Australia, employs hundreds of people, and has dozens of contractors.
Department of Primary Industries and Regions forestry director Rob Robinson said the independent audit was conducted by BDO Advisory (SA) in partnership with specialist forest sector advisory firm Indufor.
"The audit found that OneFortyOne complied in all material respects with Plantation Lease Agreement requirements in regard to domestic timber supply and exports for 2018," Mr Robinson said. "The lease identifies that sawlogs must be offered to the local market before they can be exported."
Since OneFortyOne purchased the lease in 2012, Mr Robinson said the volume of timber flowing to domestic processors increased by more than 50 per cent. He said the audit did not trigger any alarm bells for the department.
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