Early aerial assessments indicate that 80% to 90% of Kangaroo Island Plantation Timbers’ trees valued in excess of $100 million and all of the island’s independent plantations have been affected by fire. Source: Timberbiz
The region’s largest plantation holdings owner on Tuesday suspended trading of its shares on the Australian share market as it takes stock of further damage from the recent fires on the western end of Kangaroo Island.
Yesterday the company reported that staff and consultants were currently assessing fire damage, both from the air and, when it is safe to do so, on the ground. The company will determine which plantations are too damaged to have any commercial value, which areas can be salvaged, and which plantations can be allowed to grow until harvest.
KIPT executive director John Sergeant has been reported as saying that all of the company’s plantations are on the western part of the island, where the latest fire took hold, “so there is some fire and smoke impact to the trees’’.
“But we are 100% sure we will recover from this. We have good insurance in place and there is no question about the viability of the company,” Mr Sergeant said.
The company owns 15000 hectares of plantation on the island, and an estimated December 20 and December 30.
However, a major blaze that took hold of the island on January 3, jumping control lines and burning more than 156,000ha with a perimeter of more than 300km.
The company has told investors it needs time to assess the extent and severity of damage to its plantations and those of independent tree growers and to investigate opportunities to sell the fire-affected timber.
The company would also look into making any necessary changes to its arrangements with insurers, bankers and project partners.
The company said it will also use the time to “mitigate risks for the rest of the fire season and future fire seasons”.
It will work with the government and community on the economic recovery of the island and hopes to progress plans to develop a seaport, which it said remained critical to its medium and long term future.
