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2009 start advised for pulp mill works

Posted on November 21, 2008, 6:06am and updated on November 21, 2008 at 9:13 am

Forestry Minister Rory McEwen would grant an extension to approvals for Protavia to build the Penola Pulp Mill if the developer needs more time to secure the $1.5b investment for the region.

Limestone Coast Regional Development Board chief executive Grant King told City Council on Tuesday night Protavia had informed the board works would begin at the site early next year.

“We are optimistic and hopeful the investment will be made,” Mr King said.

Responding to questions about resource availability after the future of the mill was previously in jeopardy due to the absence of a woodchip supply contract, he said “on the surface there appears to be enough”.

Mr King said there was likely to be up to 3.5m tonnes of woodchips available in the Green Triangle and the maximum capacity of the mill was 1.5m tonnes per year.

“The balance would go to Portland,” he said, explaining the resource was not fully committed to exports.

Meanwhile, the year delay to construction of the mill is expected to lead to the plant being completed by 2011.

This could lead to confusion over approvals for the development as the Penola Pulp Mill Authorisation Act is set to expire, cancelling the plant’s water licence, if construction is not completed within three years of the legislation’s November 1, 2007 adoption.

However, Mr McEwen told The Border Watch he had power under the Act to extend the approval without the need for Parliament to agree to the extension.

He said he expected Protavia would inform him if more time was needed to complete the project, in which case he would approach cabinet about the revised timelines and, provided no technical specifications had changed, grant the extension.

“The key to the bill is that the bar we set is non-negotiable,” he said.

“We have said upfront, if this is what you want to do, here are the standards you have to meet.”

Mr McEwen said the mill would be a valuable investment to drive growth in the region and people should not seek out minor arguments to add to negativity about the project.

“It doesn’t help,” he said.

“I know how much work they are doing and that they are very focused on actually achieving the standards we require.”

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