NEWS RELEASE – EOI ON FOREST FORWARD ROTATIONS NOW UNDER WAY

The first stage for the sale of up to three forest rotations in the state’s South-East is now under way. Treasurer Jack Snelling has announced the process has now begun with the Request for Expressions of Interest (EOI) open to the market.
“This is the start of the competitive tender process for the sale of forward rotations of the Green
Triangle plantation estate,” Mr Snelling said.
“The Green Triangle plantation estate is one of the best softwood plantation forests in Australia and
opportunities now exist for the private sector to put forward their best bid to manage approximately
81,000 hectares of plantation lands.”
Under the sale structure it is intended that the SA Government will retain ownership of the land,
water and carbon rights. Through a lease with the South Australian Government, the new owner will have the right to manage the Forward Rotations for commercial forestry purposes for a minimum of two rotations and with the option to extend for a third.
“We are selling the rights to manage, harvest and re-grow the plantation timber, whilst retaining
ownership in the land in the South East of South Australia,” Mr Snelling said. “A key objective of the Government is to encourage the long term development of a sustainable forestry industry in South Australia.”
As part of the sale, conditions will be put in place to support the long-term viability of South
Australia’s timber industry and to ensure the forward rotations are managed in a sustainable manner.
Mr Snelling said he was currently working with the South-East Forestry Industry Roundtable on
finalising a list of specific conditions on the forward sale and those conditions will be included by the next stage of the process. Those conditions will reflect the public statements already made. In particular the Treasurer has announced that:
• Sawmill owners who have existing log supply contracts with ForestrySA will be provided with an
option to extend their current contracts by up to a further five years. This will protect job security;
• The new purchaser will be obliged to agree to target rotation length consistent with the current
and planned ForestrySA standard. This will keep the integrity of the standard of forest product
coming out of the region; and
• There is a commitment from the new purchaser to match ForestrySA’s current level of planned
viable domestic supply. This will guarantee a future local timber industry.
Other terms of the divestment will ensure the plantation is managed in a sustainable manner,
specifically:
• The plantation manager will be required to have internationally recognised forest management
accreditation;
• There will be annual reporting requirements to ensure the terms of the agreement are being
complied with;
• The state will have the right to terminate the agreement in event of default; and
• There will be a replant obligation placed on the new owner of the cutting rights to ensure that the
estate is not just harvested and land left bare.
The EOI process will close on January 31, 2012.
For more information on the Request for Expressions of Interest for the forward rotations of South Australia’s Green Triangle plantation estates, visit www.tenders.sa.gov.au
For further information contact Matthew Hillard on 0407 555 320