Minister Announces Contractors For Wild Sandalwood Industry

Minister Announces Contractors For Wild Sandalwood Industry

Western Australia Minister for Forestry Mia Davies

Sandalwood Contracts Shortlist Announced

Victor P Taffa

  • Two companies shortlisted for wild sandalwood oil processing contracts

Forestry Minister Mia Davies has welcomed the announcement of two shortlisted candidates from a recent tender process for contracts for the future of the wild sandalwood industry.

The Forest Products Commission (FPC) is proposing to enter into contract negotiations with Mount Romance Australia, and a new joint venture between Australian Botanical Products and Dutjahn Custodians.

“If final commercial negotiations are successful, then the commission will continue to supply sandalwood to Mount Romance in Albany as well as introducing an exciting new partnership based in the Goldfields.” Ms. Davies said.

 

The proposed operation in the Goldfields is a joint venture between a new local company, Dutjahn Custodians, with strong links to Aboriginal communities, and Australian Botanical Products, an established producer and supplier of essential oils and fragrances to the pharmaceutical and fragrance industries.

“This partnership proposes to distil high-quality oil from sandalwood harvested in the Goldfields region and focus on employment of local Aboriginal people.” Ms. Davies said.

“The Liberal National Government started a review of the harvest and haulage sector of the sandalwood industry in 2012 and new oil processing arrangements will complement broader reforms occurring across the State’s sandalwood industry.”

“The State Government has actively sought input into the structure of the industry from a broad range of stakeholders and I am pleased the results of the process can deliver on key Government and community objectives, including increased participation of local communities and Aboriginal groups.” Ms. Davies said.

The new industry structure is being set up to ensure continuity of supply to established local and international markets and customers.

Fact File

  • Negotiations between the shortlisted candidates and FPC will start in coming weeks
  • The FPC is responsible for the commercial harvesting, regeneration, marketing and sale of wild WA sandalwood from Crown land (including land subject to pastoral leases)
  • The Environmental Protection Authority (EPA) is currently evaluating submissions related to the possible formal public environmental review of sandalwood harvesting. Offers of contracts will be made subject to changes arising from an EPA review
  • Two other contracts for the processing and marketing of sandalwood are being resolved and an announcement will be made shortly