The Tasmanian Government has today finalised a $15 million loan facility for Boyer Paper Mill, supporting continued operations and jobs while the company implements its transition plan.
Boyer directly employs more than 320 Tasmanians and is a significant contributor to the Derwent Valley economy, with the company estimating it contributes more than $180 million each year to the local economy.
The loan provides up to $10 million for working capital and Boyer’s transition to new products and up to $5 million for capital projects, including the proposed electric boiler.
Minister for Business, Industry and Resources, Felix Ellis, said the loan reflects our Government’s commitment to support Boyer’s workers and the Derwent Valley economy while putting appropriate protections in place for Tasmanian taxpayers.
“Boyer is a major employer in the Derwent Valley and an important part of Tasmania’s manufacturing and freight supply chains,” Minister Ellis said.
“This loan gives Boyer the opportunity to implement its transition plan, diversify its products and strengthen its operations.
The loan has been structured to protect Tasmanian taxpayers and ensure strong accountability.
The loan is backed by a mortgage over the Boyer site, security over company assets and corporate and personal guarantees.
There are also comprehensive financial reporting requirements and strict conditions over dividends, asset sales, additional borrowing and related-party transactions.
“These arrangements provide strong oversight and protect the State’s position, but Boyer remains responsible for delivering a commercially sustainable future,” Minister Ellis said.
The loan follows extensive commercial assessment and negotiation and is subject to ongoing monitoring by Tasmania Development and Resources.
The Government will continue working with Boyer regarding its longer-term energy transition plans.
