Kangaroo Island Plantation Timbers Ltd (ASX:KPT) has received a further progress payment of $7.8 million from its treecrop insurance policy.
Including this latest payment, the company has now received $62.4 million in progress payments on the treecrop insurance policy.
The policy has a limit of claims of $65 million and agreed additional benefits of $2.4 million for other items.
Balance of the company’s claim is being progressed by the insurer and further details will be released once the claim has been finalised.
Trial load of softwood logs
KPT dispatched the first trial load of softwood logs through the Sealink ferry from Penneshaw to the mainland on February 19 for sale to South Australian domestic customer.
If this trial is successful, the company contemplates regular orders will be dispatched via the Sealink ferry service to domestic customers, and newly emerging export markets from Port Adelaide.
Following the fires of December 2019-January 2020, KPT accelerated plans to build its proposed seaport at Smith Bay to realise the residual value of the fire-affected crop.
In December 2020, KPT was successful in its application for a $5 million Commonwealth grant to develop a pellet mill to consume fire-damaged logs not capable of being sold into conventional mainland and export markets.
The announcement noted that all forest products, including logs, chips and pellet product, would be exported via the proposed seaport at Smith Bay.
The dispatch via the Sealink ferry is part of KPT’s plan to establish alternate routes to market while the company continues to await advice from government on the approval process for the proposed seaport at Smith Bay.