About Arisa

Introduction

Arisa Limited is an Australian public company established for the single purpose of manufacturing bleached paper pulp from annual crop fibres, predominantly wheat straw.

The first mill will be at Horsham, Victoria. Development approval and a works permit have been granted and the development at Burnt Creek has been approved by the Environment Protection Authority. Major Project Status has been awarded by the Federal government designating the project one of national importance.

The first mill will produce 38,000 tonnes per annum of bleached pulp. The process technology has been selected and Arisa has exclusive Australian rights to this. This development will be a first for Australia and a significant advancement towards solving the impending fibre supply deficit anticipated in the near future.

Industry Rationale

The world consumption of paper and board is over 300 million tonnes a year and has grown at about 2.4% per year during the last decade.

Whilst wood and recycled fibres dominate the feedstock for paper manufacture their availability can’t keep pace with increasing demand - non-wood fibre will be needed. The continued high usage of wood for paper manufacture is also threatened by environmental concerns, the lower than expected availability of plantation timber and the increasing demand for construction timber.

Arisa believes there is an unique opportunity to establish straw pulp manufacturing in Australia as well as overseas to provide the feedstock for a market which now imports fibre to fill the domestic production - consumption gap. The characteristics of wheat straw pulp will allow it to replace some hardwood pulps which are increasingly imported.

Australian Market

Annual consumption of paper and board in Australia is over three million tonnes. Only one-third of this is made from wood pulp produced in Australia, the remainder coming from recycled fibre and imports of over 376,000 tonnes per annum. Arisa's first mill will produce 38,000 tonnes per annum and will therefore be capable of replacing some imported pulp and providing supplies to customers on a just-in-time basis. There is potential for a number of mills in Australia.

The Arisa straw pulp will be sold into the quality product end of the market - printing and writing papers, board and tissue paper. All of these products are made by Australian manufacturers. Potential customer trials have taken place using pulp made from Australian straw which was sent to Italy and processed into pulp using the Naco Process (see below). The trials were a success and as a result commercial discussions are now taking place.

Benefits to Australia

Environmental - Wheat straw requires less chemicals and energy to pulp than wood and is commercially viable at considerably lower throughput rates than conventional chlorine bleach plants. The use of straw provides a valuable, alternative resource to trees, whilst also reducing the need for it to be burnt, potentially saving 5,000 tpa of CO₂emissions per mill. Almost all of the water used will be recycled using leading edge technology. There will be no negative emissions to air or water. An Environment Protection Authority Works Permit has been granted.

Regional and National - Arisa's pulp will be a significant import replacement. Economic activity will increase in the regional rural areas chosen as sites for pulp mills and will provide state benefits in terms of employment, infrastructure and increased farm income.

Two sites have been selected following location studies; Horsham, Victoria and Balaklava, SA. Both were selected due to their excellent access to wheat straw, water, natural gas for electricity and steam generation, labour and general services. The first mill will be at Horsham and it is expected that Arisa will develop a future mill on land it owns at Balaklava. The Riverina, NSW is also being considered.

Straw is plentiful in the areas surrounding Horsham and Balaklava and can be obtained in sufficient quantities to meet Arisa's needs from within 75kms of the site.

Future Plans

The Horsham mill will take two years to build. Once the first mill is up and running successfully, evaluation will begin on a further two straw pulp mills in Australia which will be developed when finance permits.

The demand for alternative sources of pulp to meet the ever-increasing paper needs of the world is an important issue and Arisa intends to be at the forefront of this market in Australia. Non-wood pulping using environmentally friendly technology has enormous potential worldwide and a joint venture with the technology supplier is envisaged to explore this.

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