After having its proposal to construct a deep-water port on the north coast of Kangaroo Island rejected by the South Australian government, Kangaroo Island Plantation Timber (KIPT) Chairman Paul McKenize announced that KIPT would immediately convert its 18,000 hectares of softwood to an agricultural estate. KIPT said it would continue to pursue any timber harvesting opportunities, provided they offered returns to shareholders. With its agricultural strategy requiring less capital, KIPT announce a buyback of up to 5.6 million shares, or about 10 percent of its value.
The original deep-water port proposal would have facilitated in the movement of 12 shipments of timber off the island each year, as well as other industries products and was estimated to generate $42 million (A$).
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Kangaroo Island firm dumps timber business