A Great Southern special report

Export woodchip price increased

Investors to benefit from new export woodchip price

• Price increased to A$207.40 per BDT
• Direct benefit to forestry investors

Great Southern Limited is pleased to announce it has agreed on a new price for the sale of hardwood woodchips on behalf of investors in its MIS plantation projects to Japanese pulp and paper customers for the 2008 calendar year. Please click here to download a media release.

The new price of A$207.40 per bone dry tonne (BDT) was agreed for plantation hardwood supplied from the Albany region in Western Australia. This price represents an increase of $18.00 per BDT – almost ten per cent more than last year’s price.

The higher price is a direct benefit to investors as it will increase the return achieved for every tonne of woodchips sold to purchasers. Increasing demand for wood fibre will directly benefit investors in Great Southern’s forestry projects as their plantations reach harvest maturity.

The graph below shows the industry price for Australian eucalypt woodchip. As a preferred product amongst many purchasers, plantation-sourced hardwood woodchips demand a significant price premium over native-sourced woodchips.