Cost blow-out for pulp mill

There were a few other details about the proposal alongside the detail regarding the pulp mill project was being revealed at the company's annual general meeting.

The Gunns had been heard in the meeting to negotiate with potential joint venture partners, however, it would not name the companies.

John Gay, Gunns' chairman, had refused to provide a timeline on a start date for the project.

It seems that the cost of the mill has now hit a whopping $2.5 billion, which includes interest.

The initial estimation was at $1.5 which later jumped to $2 billion.

Also, Sodra, the Swedish forestry company was confirmed by Gunns that it is one of the potential joint-venture partners but will not reveal any others.

Furthermore, the chairman was questioned regarding Sodra's strict environment requirements for the mill, including the issue where Sodra only uses timber sourced from plantations.

According to Mr Gay, Gunns is moving to make that happens and he is positive that the mill will be having the strictest controls in the world.

Director Robin Gray and Mr Gray were both re-elected while a new face would be added to the board table, namely David Simmons.

Also, a group of 50 protestors unfurled banners on nearby silos and waved anti-mill placards outside of the meeting,