The article comments on Gunns Ltd.'s search for an Asian partner for its controversial $2-billion mill in Tasmania after talks with several Scandinavian pulp and paper groups stalled. The author criticizes the Scandinavian investors for not seeing that Gunns is a brilliant operation able to raise debt about twice what its shares were worth.
Reports on an attempt to devise environmental guidelines to allow the construction of a pulp and paper mill in northwest Tasmania. Threat of logging to a pulp mill proposed by Gunns; Evaluation of the regional forests agreement which guarantees access to old-growth forests.
The article reports on Australian and New Zealand Banking Group's (ANZ) withdrawal as lead banker of a consortium raising $2 billion for Gunns' proposed pulp mill in northern Tasmania. According to the article, the $2 billion required for the project equates to 160 percent of Gunn's market capitalization.
The article reports that the Australian Federal Environment Minister Peter Garrett has asked for more effluent studies from the proposed $2.2 billion pulp mill in Tasmania. This has delayed the construction by timber mill company Gunns. The project has been faltering since 2008 when Australian and New Zealand Banking Group opted against financing the mill.
The article reports on issues concerning pulp mill Gunns in Tasmania. According to the author, Australia and New Zealand Banking Group had withdrawn from a capital raising for a pulp mill that equates with almost twice Gunns' market capitalization of $1.2 billion. Broker JPMorgan argues that the standalone value of Gunns excluding the pulp mill is $2.57, only slightly below its current value of $2.72.
*PULP mills, *STOCK prices, *WOOD pulp industry, *FOREST products industry
Abstract
The article analyzes the prospects of the $1.7-billion pulp mill project of Tasmanian forestry company Gunns, which has been approved by the Australian federal government. Key factors that boost the project include the confidence of Gunns' chairman John Gay about raising funds for the project, the rise in Gunns' stock price after the approval's announcement and the continuing increase in pulp prices in the world market.
*PULP mills, *INDUSTRIAL development projects, *ENVIRONMENTAL law, *ECONOMICS
Abstract
The article applauds the approval of the proposed $1.7 billion pulp mill to be built at Bell Bay in northern Tasmania in the midst of the green politics that have been blocking infrastructure projects in developed countries. According to the author, some green barriers in developed countries are extreme, leading to the lack of investors interested in building a new oil refinery in the U.S. and the rejection of a container terminal project in Great Britain.
The article reports on the campaign against Tasmanian timber company Gunns' plan to build a pulp mill. According to the author, the campaign was allegedly financed by the island's millionaires who remain anonymous for fear of commercial retributions. The author adds that the campaigners have allegedly argued that the proposed mill will ruin the island's ecotourism.
Published
2007
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