Question on Notice regarding the increase in allowable karri timber cut and contracts with WA Chip & Pulp Co. and WA Plantation Resources. The response details contract specifics, pricing, and volumes purchased.

AnsweredQoN 4902Legislative Council
Asked
1 November 2011
Portfolio
Forestry

QuestionView source ↗

In relation to the 37 percent increase in the allowable cut of karri other bole volume, from 117,000 to 160,000 cubic metres a year, recently approved through an amendment to the
Forest Management Plan 2004-2013
, I ask -
(1) Has the WA Chip & Pulp Co. Pty Ltd and/or WA Plantation Resources Pty Ltd a contract to buy any of the additional 43,000 cubic metres?
(2) If yes to (1) -
(a) for what period;
(b) for what amount;
(c) for what price -
(i) per tonne; and
(ii) per cubic metre?
(3) Does any other company have a contract to buy any of the additional 43,000 cubic metres?
(4) If yes to (3) -
(a) which company has a contract;
(b) for what period;
(c) for what amount;
(d) for what price -
(i) per tonne; and
(ii) per cubic metre?
(5) Has the WA Chip & Pulp Co. Pty Ltd and/or WA Plantation Resources Pty Ltd bought any of the karri other bole volume above 117,000 cubic metres a year logged and sold since 2004?
(6) If yes to (5) -
(a) what amount per year;
(b) for what price -
(i) per tonne; and
(ii) per cubic metre?
(7) Has any other company bought any of the karri other bole volume above 117,000 cubic metres a year logged and sold since 2004?
(8) If yes to (7) -
(a) which company has bought what amount per year;
(b) for what price -
(i) per tonne; and
(ii) per cubic metre?

AnswerView source ↗

Answered
29 November 2011
Responded by
Minister for Child Protection representing the Minister for Forestry
Response time
28 days
(1) WA Chip & Pulp Co. Pty Ltd has a production contract with the Forest Products Commission (FPC) that requires FPC to supply log timber intake of 130,000 tonnes (104,838 cubic metres) of karri other bole volume each calendar year. The log timber intake can be varied in any given year upon agreement between the General Manager and the buyer. Amounts additional to 117,000 cubic metres of karri other bole log have been sold under contract variations.
(2)(a)  The Term of the contract with WA Chip & Pulp Co. Pty Ltd is from the start of the current Forest Management Plan to 31 December 2013.
(b)  The contract requires FPC to supply log timber intake of 130,000 tonnes (104,838 cubic metres) of karri other bole log each calendar year. The log timber intake can be varied in any given year upon agreement between the General Manager and the buyer.
(c)  Current prices are as follows. All prices include base stumpage, roading, inforest charges and administration.
Large chip log (Bark on): $34.25-$36.87/tonne; $42.47-$45.72/cubic metre (depending on supply region).
Small chip log ex thinnings (barkoff): $34.01/tonne; $42.17/cubic metre.
(3) No.  Third grade logs are included in the karri other bole volume and have also been sold to customers. However, these third grade logs are selected prior to chip log sales and volumes in excess of 117,000 cubic metres can be attributed to chip log sales via WA Chip & Pulp Co. Pty Ltd.
(4) Not applicable
(5) Yes
(6)(a) The following volumes have been purchased by WA Chip and Pulp that are above
117,000 m3/ annum of karri other bole volume.
2004: 2817 cubic metres
2005: 10 386 cubic metres
2006: 28 595 cubic metres
2007: 19 373 cubic metres
2008: 38 676 cubic metres
2009: nil
2010: 21 715 cubic metres
(b) Gross stumpage prices were as per schedules (posted on FPC website) for each year of sale.
(7) No.  Third grade logs are included in the karri other bole volume and have also been sold to customers. However, these third grade logs are selected prior to chip log sales and volumes in excess of 117,000 cubic metres can be attributed to chip log sales via WA Chip & Pulp Co. Pty Ltd.
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