W.A. Blue Gum

W.A. Blue Gum Limited (“WABG”) invites prospective Growers to sublease 5 or more identifiable allotments of land (1 hectare each), for a term of approximately 10 years as part of a commercial Tasmanian Blue Gum (Eucalyptus globulus) plantation. It is expected that there will be no substantive difference to the amount of wood produced on a hectare regardless of whether the land is planted or Coppiced.

Each hectare that is planted is likely to contain between 850 and 1,000 trees (with an average of about 925). Each hectare that is Coppiced is likely to contain approximately 600 stump stools, from which an average of more than 2 stems will develop, thereby yielding an average number of stems similar to planted land.

The W.A. Blue Gum 2024 Project offers the opportunity to become a grower of Tasmanian Blue Gum trees and to carry on the business of commercially growing timber plantations.

Upon payment of an initial Establishment Fee and ongoing lease, tending and other fees, Growers in the Project will receive a sub-lease of an allotment of Project Land on which the trees will be grown over a period of approximately 10 years. The minimum investment is 5 hectares of land.

The timber Harvested from the Project Land will be sold, most probably, for use in the paper industry and Growers will be entitled to a share of the pooled proceeds (if any) according to the number of hectares of land sub-leased.

In addition to the sale proceeds at the conclusion of the Project, and in the opinion of the Project Manager, Growers should be entitled to tax deductions for both the initial Establishment Fee and the ongoing fees.

Pulpwood Industry

The continued reliance on paper and paper products by developed countries and the increased consumption of these products by developing countries is leading to an increase in demand for the raw materials required for paper production. Hardwood fibre, extracted from Blue Gum, is the preferred raw material for the production of high-quality paper. In fact, most paper mills require that some, if not all, of their timber input be hardwood fibre.

Key Features of the Project

The Project will consist of about 800 hectares, more or less, subject to land of the required quality being available.