Australia’s last paper mill and supplier of newsprint remains locked in negotiations for power security, with Tuesday’s meeting to resolve an impasse over costs concluding with no outcome.
As one of Tasmania’s major industrials, the Boyer pulp and paper mill in New Norfolk is also one the state’s largest power users.
Aurora Energy is seeking a $7 million bank guarantee to cover energy costs for the mill as it looks to electrify and move away from its coal-powered boilers, a figure Boyer owner David Marriner has labelled “obscene”.
Speaking after the meeting on Tuesday afternoon, a spokesperson for the Boyer Mill said discussions had been “constructive”, and remained committed to ensuring a positive outcome for workers.
As there was no outcome, another meeting will take place on Wednesday.
Aurora Energy said it continued to “hold active discussions with the Boyer Mill”, and would “continue to negotiate in good faith”.
Figure ‘entirely consistent’
In a statement provided ahead of Tuesday’s meeting, state-owned power business Aurora Energy said credit security requirements were “entirely consistent with the treatment of all other large electricity users in Tasmania”.
Aurora said it had been engaged in discussions since June this year, which had been “constructive and flexible with Boyer management on the timing and parameters of credit security”.
“When it comes to large customer electricity bills, it is critical that Aurora Energy operates commercially and manages its financial risk, given 90 per cent of its dividend is returned to the Tasmanian people.”
Melbourne businessman David Marriner, who purchased the paper mill in February, said the proposal was unreasonable.
"It's just an insane, an obscene request,"
Mr Marriner said.
The Boyer Mill, which is currently Tasmania’s fourth-largest carbon emitter, is working to convert its coal boilers to electric after years of energy concerns.
Key negotiations continuing
Ahead of the meeting, Mr Marriner said his company’s reply proposal of a $2.5 million guarantee and more frequent payments had not been accepted by Aurora.
"I certainly hope commonsense prevails [at the meeting] and I'm hoping that there is goodwill at the table at the present,"
Mr Marriner said.
Mr Marriner, who met with staff on Tuesday and will meet with more on Wednesday**,** said his company was “absolutely committed” to securing the best outcome.
“I know what it’s like to see a factory close down. Once that happens, it’s never likely to reopen,” he said.
"We’re there to make sure we can secure the ongoing future of the mill, secure the future of their jobs.
"These are people who have an enormous responsibility to carry on an 80-year legacy.
“I will be in the trenches with them to see that their job is continued, and certainly do the best that we can possibly do.”
FULL ARTICLE: Australia's last paper mill, Tasmania's Boyer Mill, locked in energy security negotiations with Aurora - ABC News