Agreement on Boyer Mill welcomed

The Tasmanian Government welcomes the agreement reached between Aurora and the operator of Boyer Mill.

Minister for Energy and Renewables, Nick Duigan, thanked Boyer and Aurora for conducting the negotiations in good faith.

“This agreement locks-in the credit security requirements to cover the mill’s ongoing power needs and operations,” Minister Duigan said.

“As a major industrial customer and a major employer, this is a good outcome for the State.

“The agreement balances Aurora’s fiduciary and commercial responsibilities and a workable solution for Boyer.”

Boyer is Australia’s last paper mill and employs around 300 Tasmanians, and the new agreement will help to maintain local employment levels into the future.

Minister Duigan said that as Boyer is a major industrial customer, it was normal for Aurora to require a suitable guarantee on bills which amount to more than $40 million a year.

“Security arrangements apply to all of Aurora’s major industrial customers and are a standard requirement across the industry more broadly,” Minister Duigan said.

“At the same time, we acknowledge Boyer’s plans to electrify and move away from its coal-powered boilers.

“I thank the representatives of Aurora and Boyer for their efforts in reaching this agreement."

The details of the credit security requirements are in line with Aurora Energy’s credit security policy.

Comments attributable to Trevor Danos, Chair, Aurora Energy:

“Aurora Energy welcomes the new credit security arrangements agreed with the Boyer Mill.

“These ensure our relationship with an integral customer to the Tasmanian community continues whilst remaining in line with Aurora Energy’s commercial obligations.”

Comments attributable to David Marriner, Principal, Boyer Capital Pty Ltd:

“I thank all stakeholders involved, particularly our own management team, for achieving a mutually acceptable outcome.

“Despite the distraction of these negotiations, our focus has been, and continues to, remain on developing a sustainable future for our 310 employees.

“Critical to this vision is converting our boilers from coal-fired to electrification.

"This is a federal government backed initiative that will deliver a 170,000 tonne saving in carbon emissions for Tasmania.”