ECONOMIC VIABILITY EVALUATION INDICATES VALUE FOR GROWERS

The interim economic evaluation of the Tiwi Plantations carried out on behalf of Growers reported that almost 30,000 ha of trees are established and growing on the Islands and should return value for growers. Further detailed studies are required in order to prepare a more comprehensive report using current information.

Based on a review of existing and available reports the interim review group reported that there was no evidence that the plantations were suffering from major problems apart from the effects of cyclone damage to the earlier plantations established by Sylvatech.

The URS report which was linked by the Receivers and Managers to their declaration that the Tiwi Plantations were unviable was in fact a desk top review of Financial Model Inputs and contains no references to the viability of the Tiwi estate.

The interim report concluded that whilst growth of the trees appeared to be variable across the Island a significant volume of harvestable wood fibre would be produced from the plantations and that it could be reasonably expected that a market for the wood fibre would be available at the time of harvest.

The group reviewed a range of reports from independent and expert foresters which had been prepared on behalf of Growers by Great Southern. The reports were mainly general in nature and the study of much more detailed information is required before any definitive forecasts might be attempted.

Detailed data and current reports are held by Indigenous Business Australia and by Great Southern (now Gunns Plantations) and SMTT will continue to work to access this material to enable the completion of an economic evaluation report for Growers.