Hong Kong investors get cold feet on Portland pulpmill proposal

The decision follows the completion of a study into the feasibility of the proposed Portland mill, commissioned by ARC International in association with the China International Tourism and Trade Company (CITTC).

ARC International points to the appreciation of the Australian dollar and the high cost of eucalypt chips as the reasons for it pulling out of the deal, claiming these factors have undermined the viability and return of the project.

The back down comes in spite of ARC International naming the Portland mill as the strongest BCTMP proposal in Victoria, factoring in the quality of the plantation timber in the region and its access to a major port.