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Australia: Mill plan sparks hemp fight

Cortlan Bennett

The Sunday Times, Australia

Sunday 19 Dec 2004

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HEMP Resources has upped its battle with the State Government over an
industrial hemp licence after signing a $6 million Chinese letter of intent
for advanced paper-mill technology.

The Perth company is appealing against the rejection of its licence
application in September by Registrar of Hemp Mark Holland on the grounds
that two of its directors and an associate had minor criminal convictions.

The Corruption and Crime Commission also is investigating the application
process after the company claimed police supplied misleading information.

The appeal is being weighed by Agriculture Minister Kim Chance, who said he
was unlikely to reach a decision until early next year.

The Chinese deal involves a letter of intent signed with Tian Xin, director
of China's Natural Fibre Research Institute in Shenyang, for two places on
the board and 30 million Hemp Resources shares at 20c each.

In return, Hemp Resources would secure patents and ongoing research into
bio-friendly hemp technology.

Unlike other paper-making processes, the Chinese method does not use bleach
and allows nutrient-rich runoff to irrigate and fertilise nearby farmland.

China is the world's largest hemp grower and refiner. But Hemp Resources
managing director Kim Hough wants to change that by bringing the industry
to WA.

He said China had vast hemp manufacturing capacity and technology but was
running out of space to grow it.

"They can't get enough raw material to satisfy demand," he said.

"This presents a unique opportunity for WA because we have some of the best
broadacre farmers in the world."

A Chinese delegation led by Mr Xin visited the WA Shire of Moora in May to
discuss hemp growing and a $4 million paper mill.

"Moora has expressed a substantial interest," Mr Hough said.

"There are a few other shires waiting to see if the Government will allow
us to get the project up and going."

Shire of Moora enterprise development manager Devon Gilmour said the
district was keen to develop a hemp industry in WA.

"It's a potential export earner for the state and certainly an opportunity
for this region to grow," he said.

"If we can play a part in trying to advance that industry we would
certainly be pleased to do so."

All that remains is for Hemp Resources to secure an industrial hemp licence.

"We need a licence to process," Mr Hough said.

"We're not farmers but a licence is needed for all facets of the industry -
either (growing), processing or seed import."

Mr Hough said a 7000-tonne-a-year hemp paper mill - such as the one planned
for Moora - could be worth about $20 million a year in exports.


 

 

 

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