Kangaroo Island Plantation Timbers keen to regenerate after fire damage

KIPT working with independent growers for potential salvage and replanting of fire-damaged pine and eucalypt trees.

The plantation company said pine and eucalypt assets had largely been spared, however, three independent tree growers had been affected on Kangaroo Island. Picture: Sean McGowan.

Kangaroo Island Plantation Timbers (KIPT) has requested an end to the current trading halt on the ASX as it returns to normal operations following fires on the South Australian island.

The plantation company said pine and eucalypt assets had largely been spared, however, three independent tree growers had been affected.

The company said it had “spoken with them about the potential for salvage and replanting operations” and would work closely with them “to produce the best possible economic outcome”.

KIPT’s managing director Keith Lamb remains on the island assessing salvage opportunities and assisting independent growers.

The insured value of affected timber area equates to $11.6m, 10.1 per cent of the total insured value of the timber estate. About 6.4 per cent of the net stocked area, or 891 hectares, was affected.

KIPT said in the statement to the ASX that the fire would not impact its proposed KI Seaport and chip handling facility at Smith Bay.

KIPT’s fire insurance policy has a $5m excess, however a full assessment of damage cannot occur until the fire-ground is declared safe and public access in granted.

Nearly 1000 homes have been lost from bushfires across the east coast since November 8, according to the latest Insurance Council of Australia figures.

This represents total insured losses so far of $220m, although this number is expected to increase sharply over coming weeks.

The bulk of the housing losses have been in NSW, with losses also in South Australia and Queensland.