Published: 21 July 2005
Evergreen Forests Ltd chairman Peter Wilson said today the company was discussing a potential large-scale wind farm development on its West Coast North Island property with Mighty River Power.
Initial technical work has been completed and the scale of the potential project & the preliminary economic analysis indicated significant potential for the site, but would require further investigation to confirm, he said. Mighty River Power chief executive Doug Heffernan said the power company was very interested in continuing investigation into the potential development, especially given that this single project could deliver up to 2% of New Zealand’s electricity needs close to Auckland. Mr Wilson also said Evergreen’s board met on Wednesday to consider binding bids under the asset sale/recapitalisation process and the outcome of this process would be announced shortly. An executive summary of Jaakko PÃ¶yry Consulting’s 30 June forest valuation analysis has been posted on the company’s web site. The $90.6 million valuation, 14.6% down on the December valuation, was based on a 10% real discount rate.
Mr Wilson said Evergreen commissioned valuers to undertake an assessment of the land value and this information would guide the board in its assessment of offers. The company would announce the result of the land valuation as soon as this was finalised.Evergreen owned or had cutting rights over 19,184 pine-stocked ha at 31 December.