Statement for Media - under embargo
EDEN CHIPMILL WOOD SUPPLY AGREEMENT CANCELLED
The Forestry Corporation has cancelled its Wood Supply
Agreement with the Eden woodchip mill.
Chief Executive Officer of the Corporation, Mr Nick Roberts said
that the recent change of ownership of the mill had required
some scrutiny of various aspects of the agreement and this had
formed the conclusion that the continuation of the current
arrangements could not be justified.
Mr Roberts said that under Clause 31.1.1 of the agreement, a
change of ownership must be approved by the Government.
“Unfortunately in the current circumstances, this was not
possible,“ he said.
Clause 31.1.2 states that “in considering whether to give
consent to any proposed assignment, State Forests must have
regard to the public interest.”
The Wood Supply Agreement was scheduled to run for 20 years from
1 January 1999, but can be cancelled for a variety of
circumstances, including, under Clause 3.1 for “an event arising
from an Act of God”
“After lengthy consideration the Government has decided that a
continuation of the agreement until the end of 2018 would not be
in the public interest, with or without any intervention from
The international market for woodchips has crashed and there is
no way that the Forestry Corporation can continue to supply
trees without incurring further multi-million dollar losses for
Contact: Nick Roberts
1 April 2016
Office of the Chief Executive Officer, Forestry Corporation of NSW
http://www.forestrycorporation.com.au/ Postal address: PO
Box 100, Beecroft NSW 2119