Image for Gunns updates the market, as the Watchdog ... watches, and Code Green protests

GUNNS LIMITED | ABN 29 009 478 148

PO Box 572 Launceston Tasmania Australia 7250 | 78 Lindsay Street Launceston Tasmania Australia 7250

T 03 6335 5201 | F 03 6335 5406 | http://www.gunns.com.au

31 August 2011

Company Announcements

Platform Australian Securities Exchange

MARKET UPDATE

Tasmanian Forests Agreement

The company has received an offer from the State government in respect of a settlement proposal to support implementation of the Tasmanian Forests Agreement.

The offer is open for acceptance until Friday 2 September 2011.

The offer and associated documentation is being reviewed by the company and discussions to clarify specific aspects of the offer have been held with the State government.

It is the company’s intention to advise the State of its position in respect of settlement of the matter by 2 September 2011.

As has been outlined previously by the company, satisfactory settlement of the Tasmanian Forests Agreement is essential for creating a satisfactory environment for both the traditional industry and new investment in the State.

The company will provide an update to the market on the conclusion of the process.

Pulp Mill Project Works

The company has executed a contract for bulk earthworks at the site and these works commenced on 29 August 2011. The company has undertaken substantial investment and works on the project. Expenditure of over $200 million to date has been incurred to finalise approvals, complete site roading and vegetation clearing, preparing construction, operation and monitoring plans and procuring equipment.

ABC Online: Watchdog spotlight on mill permits

Tasmania’s environmental watchdog is looking into whether Gunns still has a valid permit to build its Tamar Valley pulp mill.

The permits for the timber company’s $2.3 billion mill will be deemed expired unless “substantial” work has started on the site.

Gunns has been told to prepare a submission explaining why it believes a “substantial commencement” of work has happened at the site.

The EPA’s Director, Alex Shaap, says he will then take legal advice before making a decision.

The process has been triggered by the company’s request to the EPA for a minor variation to the mill’s stormwater management plan.

An alliance of anti-pulp mill groups has warned they will take legal action against Gunns if the Tasmanian government does not halt work at the Tamar Valley pulp mill site.

Liberal Leader Will Hodgman says the Government needs to act to end uncertainty.

“I don’t accept this notion from Lara Giddings that there’s little or nothing the Government can do,” he said.

“This is the biggest single private capital investment in this state and one of the biggest in the nation.

“I would have thought stronger leadership and ability to clear up this matter once and for all would have been an important thing for a government to do.”

Tasmania’s Attorney-General Brian Wightman says he will not intervene in the issue of pulp mill permits.

ABC Online HERE

• Pulp the Mill: Community calls for end to Pulp Mill saga

Community groups held a general press conference today (thursday) at 2.00 PM today at the Aquatic Centre, Launceston. Representatives for Pulp the Mill and CODE GREEN were present alongside conservation lawyer Vanessa Bleyer. They demanded that the Government and the Attorney General place an injunction on further works at the Pulp Mill site until there is clarification regarding “substantial commencement” of the project.


“The people of the Tamar Valley are extremely angry that this ridiculous farce called the pulp mill permit saga continues. We have endured 7 years of being ignored, of bearing the brunt of a Government which refuses to act for the wellbeing of its people. We have been lied to countless times by Gunns and neither the government or the ASX step in to stop the lies; we have been shafted time and time again by a corrupt process initiated by a conniving Labor government.” said Pulp the Mill representative Lucy Landon-Lane.


“The PMAA (Pulp Mill Assessment Act) was rushed through Parliament by Paul Lennon and which contains the unconstitutional point namely S.11 which denies the community our rights to legal action if we are adversely affected by the pulp mill.” said Ms. Landon-Lane.


“There has been no substantial commencement on the pulp mill project, and therefore Gunns are operating illegally as of today, which we believe is only a charade to try to influence the sharemarket.” said Ms. Landon-Lane


“The Pulp Mill permits have lapsed and the Attorney General ought to exercise his power to bring an end to any activity under the permit which is otherwise unlawful as substantial commencement has not been achieved,” said conservation lawyer Vanessa Bleyer.


“The community’s concerns were sidelined by a flawed corrupt legislation system seeking not to serve public interests but to deliver a corporate agenda through the most disingenuous and irresponsible back-door means ever adopted by Australian governments.” said CODE GREEN spokesperson Ali Alishah.


“Huon Valley Environment Centre and Still Wild Still Threatened stands in solidarity with Pulp The Mill and CODE GREEN who are calling for the pulp mill to be halted in it’s tracks before further environmental and social impacts are inflicted,” Still Wild Still Threatened spokesperson Miranda Gibson.


“CODE GREEN will not tolerate the State Government’s deplorable attitude towards local communities whose interests should be at the heart of any formulation of industrial, corporate or political policies. We stand as part of the community in solidarity with all Tasmanians against a project which endangers Tasmania’s unique natural and economic environments,” said Mr.Alishah.

First published: 2011-08-31 04:59 PM

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• Code Green: Protesters stop trucks from entering pulp mill site

Today members of CODE GREEN stopped two Hazel Bros trucks, preventing the trucks from entering the pulp mill site.  The trucks were carrying modular offices.
9 protesters gathered outside Gunns’ land carrying a banner saying NO TOXIC PULP MILL.

Police arrived on the scene promptly and were pleased about the peaceful manner in which the members of CODE GREEN conducted themselves.