Gunns chairman John Gay cited “recent improvement in financial markets” as aiding the project’s plight.

“The company is continuing to work positively with its banking group to close the project finance facilities,” he said.

“The company is also in dialogue with a number of parties regarding equity investment in the project.

“The Swedish forest products co-operative Södra is one of these parties.

“The parties are continuing to work through detailed discussions in relation to the investment.”

Speculation about financing has surrounded the project for months, with Södra touted as a possible investor in June this year. Gunns originally said it expected to be able to identify its partner by the end of that month.

Gay added that he expects the external equity investment in the project to be approximately 40 per cent of the mill equity requirement.

“While the past year has been difficult in terms of progressing financing arrangements for the project, it has been made very apparent through this period that the Bell Bay Pulp Mill will be highly competitive in the global market,” he claimed.

“This is due to the location and quality of the wood resource, the scale and design of the mill, and the proximity of the mill to the Asian market.”

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