THE sale of a woodchip mill seen as vital to a Tasmanian native timber industry appears to have fallen over, with Gunns Ltd set to sign a contract with green tourism entrepreneurs instead.
The mill at Triabunna on Tasmania's east coast was in the process of a controversial sale to a local logging firm, which was to be given a state government loan as part of the undisclosed purchase price.
However, retail entrepreneur Jan Cameron, the multimillionaire founder of Kathmandu clothing, today confirmed she had bought the site with Wotif founder Graeme Wood.
In the short term it would continue operations as a chip mill before it became a tourism venture, Ms Cameron told ABC local radio.
No immediate comment was available from Gunns, but the mill is reported to have brought the company $10 million.
Tasmanian Premier Lara Giddings had defended the need to lend money to Fibre Plus, a subsidiary of the local firm Aprin Logging, because of the strategic importance of the Triabunna mill to the profits of a smaller scale industry after Gunns exits native forest logging.
The state agency Forestry Tasmania had entered into an agreement to supply Fibre Plus and share in the profits.
Email a friend