Chief Executive Don Matthews, of the Penola Pulp Mill subsidiary, said yesterday that he is confident that construction of the largest ever mechanical pulp mill will become a reality soon.

The proposed budget of $1.5 billion for the pulp mill development project has been approved fully, and financing is almost done as well.

"We would expect construction to begin in the first quarter of next year," Mr Matthews stated.

"We are very optimistic as we continue to identify potential investors."

It is believed that one of the project's investors is the Tan Hong Import & Export Joint Stock firm, a Vietnamese-owned company.

Tan Hong is expected to fill the gap when ANZ shelved the project a couple of years ago, due to the worldwide fiscal crisis. However, Mr. Matthews said that while they are showing positive interest, the Vietnamese firm is not a sure buyer as of yet.

"I can't say anything about the Vietnamese investor at this stage -- we are having discussions on a number of fronts," Mr. Matthews remarked.

Frank Brennan, chief executive of Wattle Range Council said that Penola is all set to be a 'boomtown' soon, thanks the mill project.

Wattle Range Council plans to spruce up about $800,000 worth of works in the town, as tourism industry projections are also high due to announced canonisation of Mary MacKillop, a local of Penola.

Mr. Brennan also remarked that the mill project is stable on all fronts.

"The project is environmentally, socially and financially sustainable," he commented.

"It will create a lot of employment for the area."

Mark Braes, Penola Mayor, said the new pulp mill would bring in 300 new permanent jobs, while the construction stage alone would generate about 1000 jobs.

"It's a big one, and very welcome as this area grows," the mayor said.