Including this latest payment, the company has now received $20 million in progress payments.
The balance of KIPT’s claim is being progressed by the insurer. The policy has a limit of claims of $65 million.
Committed to plantation forest industry
The company remains committed to plantation forestry operations following summer bushfires with the proposed Kangaroo Island Seaport to play a key future role.
KIPT plans to bring the land back into full production as soon as possible and in order to do that the tree crop, 95% of which was damaged in the fires, must be harvested.
To get value from the current crop, the Kangaroo Island Seaport is needed to get the product - logs, woodchips or pellets – off the island.
Managing director Keith Lamb recently said KIPT intended to fund, construct and operate the port business from revenue generated from the salvaged wood.
Lamb said that the key message was that even though KIPT had an interruption to the business on the current crop, the long-term proposition was still the same as it had been previously.
“Kangaroo Island is still a good place to grow trees with above-average biological growth compared to the mainland and this hasn't changed.”