ANZ pulls out of financing Gunns’ proposed pulp mill

Posted: 26 May 2008 in ANZ Bank, Australia, Gunns,


Press Release 29th May 2008


Other banks also urged to abstain from a project that spells disaster for Tasmanian forests and poses huge reputational risk

Nijmegen, the Netherlands and Tasmania, Australia May, 27 2008

The Wilderness Society (Tasmania) and BankTrack welcome the decision of ANZ not to provide funding to Gunns Ltd. for its controversial Tasmanian pulp mill project.

After months of conducting its own review of the pulp mill proposal, ANZ has allegedly declined to participate in a syndicate funding the $2 billion project, media have reported widely. In light of ANZ’s new forests policy, its adoption of the Equator Principles, and recent mounting public pressure from civil society groups opposed to the project, the bank’s withdrawal comes across as a commendable action, putting in practice the high environmental and social standards that it claims to subscribe to.

“Gunns’ pulp mill would see the destruction of high conservation value forests in Tasmania and the project does not have a social liegende. ANZ’s decision is in line with its new forest policy and with principles that set a high standard for corporate social responsibility, for which they are to be congratulated,” said Mr Paul Oosting Pulp Mill Campaigner for The Wilderness Society.

“Gunns’ pulp mill poses a huge reputational risk for any bank that gets involved due the negative environmental and social impacts it will case,” said Mr Oosting.

“This is a welcome example of a financial institution taking a responsible approach towards social and environmental issues, and we sincerely hope that ANZ’s Australian and international peers would follow suit,” said Jeni Tasheva, campaigns officer at BankTrack.

While the move of ANZ will complicate efforts of Gunns to obtain sufficient funding, the company is currently seeking other options to finance the mill. Among potential financiers cited in the media are Macquarie Bank, Royal Bank of Scotland, Deutsche Bank and several unspecified big Asian banks.

In the current context of heightened media attention and ANZ’s withdrawal from the project, any bank that steps in to finance the proposed paper mill would risk major negative publicity and becoming the target of concerted civil society organisations’ campaigns.

“We strongly urge other banks and lenders to abstain from financing the pulp mill project, which is potentially damaging to both local communities and native Tasmanian forests of high conservation value,” said Tasheva, “ANZ had good reasons for the decision, and these count for other banks as well.”

More information:

Paul IJ Oosting
Pulp Mill Campaigner The Wilderness Society (Tasmania) Inc.

Jeni Tasheva
BankTrack Campaign officer

Notes for editors:
Dodgy deal: Gunns Pulp Mill Proposal Tasmania

The Wilderness Society (Tasmania) – Take the Pulp Mill Pledge

ANZ’s Forests Policy (February 2008)

The Equator Principles

ANZ and the Equator Principles

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