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Contractor casts doubt about pulp mill

Posted November 6, 2008 14:01:00
Updated November 6, 2008 15:31:00

Leighton Holdings is the parent company of Gunn's preferred contractor.

Leighton Holdings is the parent company of John Holland, the preferred contractor for Gunns' pulp mill.

The parent company of the contractor earmarked to build Gunns' proposed Tamar Valley pulp mill says it doubts if it still has a live agreement with the timber giant.

Leighton Holdings is the parent company of the John Holland Group, one of the preferred contractors to build the $2 billion project.

Speaking after Leighton Holdings Annual General Meeting today, chief executive Wal King has repeated that he has no idea if the project will proceed.

Mr King says his company is not currently doing any work on the mill and says it is unlikely an agreement with Gunns would still be valid.

"So much time has gone by now that the contract would be extremely tenuous, it's a letter like an intent to build now - intent is like an engagement," he said.

Mr King says he doubts if his company still has a live agreement to build the mill.

"If it goes ahead, the thing has been there for so long now in a state of being hatched, I actually have no idea if the company would build it or not," he said.

"We don't have any knowledge now of where they are with their funding, particularly after I've made comments - they keep us further away from them."

A spokesperson for Gunns says the mill is ready for construction pending environmental approvals and finance being secured.

He said agreements with a number of companies to build the mill are still valid.

Tags: building-and-construction, forestry, bell-bay-7253

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