The Australian Government welcomes the announcement by Gunns Limited to conduct a feasibility study into the potential of a world-class pulp mill in Tasmania.
Gunns' intention to explore the viability of a $1 billion Total Chlorine Free (TCF) Kraft mill seeks to balance important environmental considerations with value adding and sustainable jobs growth in Tasmania. The potential $1 billion investment could generate substantial export earnings for Tasmania, and create 300 direct jobs, more than 1,000 indirect jobs, 3,000 construction jobs. This presents a significant opportunity for the creation of long-term jobs growth in Tasmania and for the general up-skilling of the local workforce.
Tasmania's economic development and the conservation of its unique environment requires a sensitive balance between economic, environmental and social objectives.
This important balance is reflected in the commitments under the Regional Forest Agreement for effective conservation, sustainable forest management and sustainable value adding to the forest products industry. This sound framework enables investments of this nature to be considered. Should the feasibility study commissioned by Gunns Limited conclude that a world-class Total Chlorine Free pulp mill is economically viable, the Australian Government is prepared to consider contributing up to $5 million to assist with the project costs associated with the development of an environmental best practice pulp mill.
This investment would be the single largest private investment in Tasmania providing a significant injection to Tasmania's economy.
The Australian Government welcomes investment projects for Tasmania that seek to balance economic, environmental and social objectives.