KI Plantation Timbers’ 80-90 per cent stock impacted by bushfire
Kangaroo Island’s largest timber plantation owner says early aerial assessments show 80-90 per cent of its trees have been impacted by the recent major bushfire.
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Early aerial assessments show 80-90 per cent of SA-based Kangaroo Island Plantation Timbers’ assets have been impacted by the recent bushfires.
The region’s largest plantation holdings owner on Tuesday suspended trading of its shares on the Australian share market as it takes stock of further damage from the recent fires.
“Our preliminary assessments, based on aerials, is that the fire has gone through 80-90 per cent of our plantations,” executive director John Sergeant told The Advertiser.
“All of our plantations are on the western part of the island, where the latest fire took hold, so there is some fire and smoke impact to the trees.
“But we are 100 per cent sure we will recover from this. We have good insurance in place and there is no question about the viability of the company,” Mr Sergeant said.
The company owns 15000 hectares of plantation on the island, 17 per cent of which had been impacted by fires on December 20 and December 30.
KIPT’s aerial assessment follows the major blaze that took hold of the island on January 3, jumping control lines and burning more than 156,000ha – with a perimeter of more than 300km – of the pristine tourism destination, mostly the western side of it.
The company told investors it needed time to assess the extent and severity of damage to its plantations and those of independent tree growers and to investigate opportunities to sell the fire-affected timber.
The company would also look into making any necessary changes to its arrangements with insurers, bankers and project partners.
The suspension, until the end of the month, would also help “determine its future business strategy and extent of planned replanting activity; and to determine the extend of fire-related impairments to the carrying value of its land and timber assets”.
The company said it will also use the time to “mitigate risks for the rest of the fire season and future fire seasons”.
It will work with the government and community on the economic recovery of the island and hopes to progress plans to develop a sea port, which it said remained critical to its medium and long term future.
KIPT’s suspension comes after it entered its third trading halt in two months on January 3 as the latest fire took hold.
On January 2, KIPT told investors 17 per cent of its holdings, or almost 1900ha, had been impacted by fires that broke out on December 20 and December 30.
About 891ha was affected in fires in the Duncan area that started on December 20, and another 971ha were damaged by blazes that broke out in the Ravine des Casoars Wilderness Protection Area on December 30.
Shares in KIPT last traded at $1.96.
Kangaroo Island’s multimillion-dollar tourism industry is reeling from the devastation. Businesses on the southern side, including Baillie Lodges’ luxury Southern Ocean Lodge, Hanson Bay Cabins, Hanson Bay Wildlife Sanctuary, Western KI Caravan Park and Kangaroo Island Wilderness Retreat, suffered extensive damage in the recent bushfire.
Baillee Lodges estimates it will take several years to rebuild its $60 million luxury resort, which was designed by Adelaide architect Max Pritchard and opened in 2008.
The Flinders Chase National Park, which was hit severely by a fire in 2007, again has been ravaged, with its visitor centre and cafe reduced to ashes.
Tens of thousands of people visit the park each year, with the Remarkable Rocks and Admirals Arch among its drawcard attractions.
Domestic and overseas visitors spend about $140 million annually on Kangaroo Island, making tourism its biggest industry ahead of agriculture, forestry and aquaculture.