Several names have been put forward in speculation about who the partner or partners may be, including Nine Dragons Paper Holdings of China, Sodra, and Stora Enso. Gunns has refused to comment on the identity of their potential partners.

“The company has substantially progressed its negotiations with potential joint venture equity partners for the Bell Bay Pulp Mill Project,” said Wayne Chapman, Gunns company secretary, in a statement to the Australian Stock Exchange. “A process is being conducted to select a partner to negotiate a joint venture agreement.”

“The company will provide a further market update when the terms of the agreement are finalised, which is expected to be in June 2009.”

The mill has been approved by Environment Minister Peter Garrett, subject to the results of a study on the mill’s effluent that will be discharged into the bay and Bass Strait.

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