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August 6, 2007

In defense of Gunns' proposed Eucalyptus pulp mill in Tasmania

Analysis of: Out of Control-the tragedy of tasmania's forests | www.themonthly.com.au
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Dave Hillman, Independent ConsultantDave Hillman
Independent Consultant, Dave Hillman
Implications: Tasmania's location makes it a prime candidate to be a major supplier to emerging markets in India, SE Asia and the Pacific rim. With 5 million hectares of E.Nitens plantations already producing chips (currently only for export), it is only natural to construct a local pulp mill to produce a value added product - in this case Bleached Eucalyptus pulp. The world's appetite for eucalyptus pulp for papermaking (especially UFS papers) is expected to continue to grow and even accelerate as countries' middle class (the consumers) continues to grow.  India already has 250 million in its middle class and China is not far behind. A4 (copybond) papers alone can consume the output of many modern high-production paper machines which by their nature require high quality pulps rather than wheat straw or rice straw pulps.  These machines are already being built or are in the final planning stages.  Pulp production must keep up!

Analysis: Author Richard Flanagan is distressed over the loss of old natural growth forests and wishes to preserve them in their entirety.  And yet a natural growth forest is a sickly, dying collection of trees - shutting out sunlight to younger trees and preventing any undergrowth that is necessary to support wildlife.  Over the years lightning has succeeded in erasing these sickly forests so that a new beginning can commense. In the USA there are now more healthy (plantation grown) trees than when Columbus discovered it.   These old natural growth forests must be clearcut (he calls it clearfelling) in order to prepare the ground for highly advanced young eucalyptus trees to be planted.   They become a "crop" that can be harvested on 11-12 year cycles.  As these trees are thinned they keep the canopy open so that sunlight can filter through creating a verdant undercover of bushes and plants on which wildlife can feed.
Gunns already has 5 million hectares of eucalyptus plantations from which they are  exporting green chips (green=half water).  Their new mill will consume 4 million hectares leaving one million still for export. Author Flanagan claims Gunns will proceed to clearfell an additional 2 1/2 million hectares of old growth forests.   I question this figure as being impractical since it would seem to be greatly in excess of what is needed.
Gunns intends to build a state-of-the-art mill duplicating what is being built in Uruguay and Brazil.   These mills are in full compliance with the most rigid of environmental restrictions.  For example, no elemental Chlorine will be used in bleaching - only Chlorine dioxide which has been shown to have dioxin/furan levels below 1 part per billion (often called non-detectable).  Yet Flanagan erroneously says Gunns will revert to elemental Chlorine.  Absolutely not!    And, as far as water is concerned, today's pulp mills are required to only put potable water back into the rivers....no matter how filthy they were when brought in.
Tasmania is Australia's poorest State.  Are they to remain this way, foresaking industrial progress, in order to maintain 100% of the remaining natural forests?   Gunns only intends to use a fraction of these forests....not clearfell them all in their entirety.  Why can't environmentalists be content to have a "natural growth Federal forest" for people to visit?  Must the entire country be kept in a pristine state?   The Gunns pulp mill will produce over US$650 million/year in revenue plus employment for hundreds of people.   Eventually it's possible a papermachine may be added providing more employment, more export dollars and eliminating the need for Tasmania to import UFS.
This pulp mill will cover about 3 square kilometers (2 sq.miles) and yet author Flanagan writes as though it will cover half the Island.  The mill will produce 1.1 million mt/year of high quality, single species, eucalyptus pulp - the preferred papermaking fiber by most of the world's modern high speed machines.   These machines are being installed in China and many other countries.  The business world and society are counting on the market pulp industry to provide the fiber for these machines....however Flanagan says "NIMBY" - Not In My BackYard!.  As we began, Tasmania will be a relatively low cost producer, have an excellent quality pulp and have an attractive ocean freight rate to a number of emerging markets. With 5 million hectares already producing chips, isn't it logical that the next step is to build a market pulp mill?   We certainly think so!


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