Will The Sub-Prime Crisis Sink Gunns’ Pulp Mill?

More than three months after federal government approved Gunns’ $2 billion Tamar Valley pulp mill, The Australian reports that finance and building contracts etc are still be finalised.

Conservationists and climate-change activists are hopeful that the delays to date plus the global credit squeeze brought on by the sub-prime crisis will be enough to sink the project – or perhaps move it to Hampshire, near Burnie, where a survey has shown good support for a plantations-only, chlorine-free pulp mill? Higher costs perhaps but the emotions would be reversed…

Current State-Of-Play

• The ANZ Bank, heavily lobbied by an international array of anti-mill groups, is requiring Gunns to provide further information before it decides whether to commit.
• Environment Minister Peter Garrett wants further information from Gunns before giving final approval.
• Construction companies won’t comment.
• Climate-change activist and former investment banker Danielle Ecuyer – who stood against Malcolm Turnbull at the federal election – believes the project won’t get the finance in today’s more risk-adverse climate.
• The Gunns board says the project is ‘on track’ and declines to comment on the delays and pulp and paper industry analyst Robert Eastment, of Industry Edge, expects the project to proceed.

This is probably incredibly naive, something I have long been accused of (!) but I would love to see this mill go ahead in Hampshire, for all the economic good it would bring Tas while ‘saving’ the Tamar Valley.

I suppose time alone will tell in this chaotic world economic climate…wouldn’t you love to be a fly on the wall of the ANZ boardroom?