Bombala based timber milling company Dongwha Australia has welcomed a NSW Government Forestry Industry Action Plan designed to outline the path the State will take to ensure a sustainable timber industry that aligns with the Government’s key environmental priorities. Source: Karen Forman, Monaro Post
Dongwha Australian Team Leader Neville McInnes said although the company had not yet been contacted by the new advisory panel, it was pleased the government had committed to the industry and had three key areas it wished to discuss.
They are a commitment to keeping roads open to guarantee the transport of timber between plantations and the mill; a commitment to the continued supply of softwood and a commitment to not losing what supply was already available.
“We welcome the plan, absolutely,” Mr McInnes said.
“We are moving along reasonably well at the moment, but we do need to look at the future and secure supply and infrastructure so that things don’t go down. We have 130 direct employees and are always looking for more workers. For everyone direct job, three come off it, that’s 450 jobs feeding off the mill, without secondary jobs, so we estimate 750 jobs come out of the Dongwha site. You take that out of Bombala and it’s not a positive picture.”
Korean-owned Dongwha Australia took ownership of a small mill with 20 employees on the current Bombala site in 2011 and built a new saw milling plant which was officially opened for business in 2013.
The company produces a range of softwood timber products for the Australian market. It is not involved in export.
“We are lucky, better than around Tumut and Tumbarumba which lost 50,000 hectares of timber in the fires,” Mr McInnes said.
“We lost 6000 hectares. To date that hasn’t affected us, but obviously after 2032 when our current agreement for guaranteed supply expires, that could change what volumes can be delivered from one supplier.
“So we will be showing our interest in talking about the infrastructure issues, ways of keeping our plantations in their current format, ensuring future supply, and not losing what supply we already have got.”
The Independent Forestry Panel will be chaired by Peter Duncan AM who has more than 40 years’ experience in primary industries, infrastructure and regional NSW.
Professor Mary O’Kane AC and Mick Veitch will also sit on the Panel.
The Panel will be tasked with consulting with a broad range of stakeholders and report to Government on the best options to achieve the balance between sustainable supplies of timber and environmental commitments.
Stakeholders include representatives from the timber industry, forest growers, environment groups, unions, Aboriginal communities, local government, business, related industries, tourism, scientific experts and the Commonwealth Government.
Mr McInnes said Dongwha was keen to maintain its current plantation base in Bombala, which was made up of Forest Corp NSW supplies (250,000 cubic metres per year) and private plantations within a 150km radius.
“The mill capacity is 300,000 cubic metres,” he said.
“We have a few challenges to address, though. This winter was a classic with rain, we had issues getting deliveries of getting access where roads were shut, and supply to the mill was stopped. The mill doesn’t stop, it keeps consuming logs, we operate 242 days a year, so while keep stock on hand, delivery is key to keeping the mill functioning. That is a roads funding issue, yes.
“We are also keen to maintain our current planation base in Bombala. Currently we are losing one plantation area, as one of the privates is harvesting and selling the land, losing 8000 hectares.
“The land is open to whoever wants to buy it. Obviously, we would like to see a plantation owner put it back under plantation again for the viability of the mill. If we want to get plantation timber back in the ground, it’s 25-35 years for a rotation of pine from planting to clear fell. It is a long-term crop.”
Third on the Dongwha agenda will be renegotiation with corporatised government agency Forest Corp NSW to renew its agreement for supply of wood.
“The contract is up for renewal in 2032, but obviously we like to put things in place,” he said.
“The agreement guarantees wood supply, volumes per annum for the next 10, 15, 20 years.
“Things are still positive, there is a lot of good news, we will ride through this. The best part is that we have the resource here, just some hurdles to overcome to sure up the wood supply.”
