Gunns 'cleared' for mill construction

Gunns Ltd has been cleared by the federal government to start construction of its
controversial Tasmanian pulp mill, the timber giant said.
Environment Minister Peter Garrett on Monday approved all but three of the
environmental operating conditions allowing the Tamar Valley mill to proceed.
Gunns has until March 3, 2011, to resubmit the three modules with modelling on the
potential impacts of mill effluent on commonwealth marine assets, he said.
"I am not satisfied ... that I can grant final approval for this mill without fully
understanding its potential environmental impacts," Mr Garret said.
"That includes having a thorough understanding of the potential impacts of the
mill's effluent discharge on commonwealth marine waters and absolute confidence in
the proposed management and response strategies that are proposed to put in place to
protect the environment."
Gunns chairman John Gay says the three remaining modules have Mr Garrett's
provisional approval, pending completion of modelling which the company had proposed
in its environmental plan.
"We are now clear to begin construction on the mill, pending financial close," Mr
Gay said.
Mr Gay says the environment minister has told Gunns that he is satisfied with the
scope of the hydrodynamic modelling and will not require further advice on the
modules to give final approval once the studies are completed.
Gunns at the same time is continuing negotiations find a joint-venture partner to
finance the mill's construction.
"This decision will bring added certainty to the mill project for our banking
syndicate and potential partners," Mr Gay said.
The Wilderness Society spokesman Paul Oosting agrees Mr Garrett has given the green
light for the mill's construction.
"The minister has made it clear that Gunns can begin construction of the pulp mill
even though they have not met the full federal government approval," Mr Oosting
said.
"So what we can see is a situation where the bulldozers could be rolling in the
Tamar valley any day now despite Gunns not having the full approval."
Shares in the woodchipper on Monday after the federal government's decision.
At 1521 AEDT, Gunns shares were down five cents, or 4.24 per cent, at $1.13.
Opposition environment spokesman Greg Hunt said on Monday the federal government had
approved the pulp mill but was pretending it hadn't.
The latest decision by Environment Minister Peter Garrett gave the mill the thumbs
up, he said.
"Peter Garrett today did his best to hide the fact that he had given the green light
for the construction of the Gunns pulp mill in Tasmania," Mr Hunt said.
"Mr Garrett has tried to give the impression he's had nothing to do with the
approval of the construction of the pulp mill. Well, today, he gave that approval."
"He might try to run from his decision but he can't hide from it."
Mr Hunt said construction could take the best part of two years, so the mill would
be ready to operate when the environmental studies were finished.
The federal Coalition government approved the construction of the mill when they
were in office in 2007. Former environment minister Malcolm Turnbull signed off on
the project, subject to some environmental conditions.
Mr Garrett is now in charge of checking all those conditions have been met.