Forestry Tasmania signs new woodchip contract

Forestry Tasmania, a corporation owned by the Government of Tasmania,  is signing contracts with two operators to export woodchips from forests in southern Tasmania, but the industry has concerns it will have product left on its hands.

According to media reports on abc.net, the expressions of interest process (EIO) for a solution for woodchip exports in the south opened in June last year.

Tasmania’s Resources Minister Guy Barnett announced that the EIO has been finalised, and two companies had entered contracts with Forestry Tasmania.

Majestic Timbers Australia will take up to 180,000 tonnes annually for export in containers from Hobart's Macquarie Wharf to markets in South-East Asia.

Another 150,000 tonnes a year will go to Les Walkden Enterprises, which will see the residues transported to Bell Bay for processing and then export for paper production.

The process was set up to find a solution for 450,000 tonnes of residues following the closure of the Triabunna export facility, but Forest Industries Association Tasmania chief executive Terry Edwards said he was concerned it had fallen short, according to abc.net.