Tasmanian company Gunns Limited has been investigating the feasibility of establishing a bleached Kraft pulp mill at Bell Bay in Northern Tasmania since June 2004. Based on these investigations, Gunns believes the proposed mill will make a significant and long-term contribution to the Tasmanian and Australian economy.
The optimum capacity of the mill will be established during the detailed design phase of the project, but work to date has concluded that the mill must be of world scale to be competitive. Major markets for the product are expected to be Australia and the regions of Asia Pacific, especially Taiwan, Korea, Japan and China. The direct capital cost of the project is expected to be between A$1-1.5 billion.
The proposed pulp mill will deliver significant economic and social benefits to Tasmania and Australia. The estimated cost of the direct investment in the proposed pulp mill is A$1.0 - 1.5 billion (2004 dollars). Further expenditure would also be required for upgraded infrastructure, such as roads and rail connections, electricity transmission and possibly water supply.
Gunns feasibility study indicates that the mill will have to be world scale for it to be financially viable. This means the output of the mill will be in the range of 500,000 to 1,300,000 ADt pulp per annum depending on overall pulping efficiencies and mill capacity. These tonnages can be achieved using the existing volume of export woodchips. The actual size of the plant will be determined through the Integrated Impact Assessment process.
Gunns Limited, has enlisted the assistance of ICNTAS to maximise opportunities for Australian and New Zealand suppliers. ICNTAS is requesting that any companies that wish to be a potential supplier to the project register their details through this Industry Capability Showcase Portal. At present it is too early to provide any specific procurement packages, however this portal will be utilised as the main procurement website.
All companies that register an interest will be notified about future developments. |