THE proposed Gunns pulp mill in Tasmania is effectively on hold until the global financial crisis lifts, but the company insists it will pursue the project for "as long as it takes".
According to The Australian, Gunns chairman John Gay yesterday revealed the project -- initially costed at $1.4billion -- had blown out by a further $200 million to $2.2 billion and was now effectively on ice.
"The timing of attaining financial close for the project will largely depend on developments in the financial markets," Mr Gay told Gunns' annual general meeting in Launceston yesterday.
"There will be some period of time before financial markets stabilise. In this environment, the company will be maintaining the project in a position to proceed until funding arrangements are complete."
The controversial mill, proposed for the Tamar Valley in Tasmania's north, has full state and conditional federal approval, but has been unable to attract sufficient financial backing.
Read more at The Australian online