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2h ago

Opal Sues Victoria for $402 Million Over Alleged Breach of 1996 Timber Supply Deal

The claim follows an accelerated native‑logging phase‑out that cut pulpwood to Maryvale, leading to the shutdown of Australia’s last white paper line.

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Overview

  • Opal filed proceedings in the Supreme Court of Victoria seeking $402 million in damages from the state government.
  • The company alleges Victoria breached a 1996 pulpwood supply contract for the Maryvale mill that was due to run until 2030 via VicForests.
  • Opal says it terminated the agreement in May 2023 after being told no further native timber would be supplied as the government brought forward the ban to the end of 2023.
  • A November 2022 Supreme Court ruling to protect endangered possums curtailed VicForests’ harvesting, and the agency later advised it could not meet contracted volumes.
  • White paper production ended at Maryvale in early 2023 with more than 400 jobs lost, and Opal says three years of failed talks leave it seeking a timely court resolution.