Any other Tiwi punters here?Received an email from this mob...

Any other Tiwi punters here?

Received an email from this mob looking for money to fund an action.

The success of any action to obtain relief against forfeiture of the head leases "will be dependant on the ability of the petitioner to demonstrate to the court an ability to meet the lease obligations to the Tiwi Land Council and the overall viability of the Tiwi plantations".

Regrettably I have formed an opinion that these projects are unviable for following reasons:

Poor choice of Hardwood

Acacia mangium has poor stem and branch form would probably increase harvesting costs and reduce overall yields.

Furthermore, by Great Southern's own admission, the generally lower pulp yields and higher chemical use in the bleaching process, Acacia mangium does not currently attract the same price premium as the Eucalypt species used in the [other] Projects

Lack of infrastructure on Tiwi Islands (mill or wharf)

I note that the wharf on Tiwi collapsed in 2007 due to 'faulty design, which made insufficient allowance for the pressures exerted by the landfill wharf on the sheet piling on the face and sides of the wharf' As a result, the insurer declined the claim made by Great Southern.

Lack of economy of scale

By Great Southern's own admission, the current size of the plantation estate (29,000ha) on the Tiwis is less than
optimal. Scale is particularly important because the cost of constructing and operating the port loading and stockpiling facilities requires a minimum level of annual throughput volume to be commercially viable. At current
growth levels an estate of 30,000ha could be expected to deliver annual throughput of approximately 450,000 tonnes whereas an internationally competitive facility would require 700,000 to 800,000 tonnes in annual throughput.

These projects were lemons from conception. It's a case of throwing good money after bad.