KIPT reported to investors that its insurer, Primacy Underwriting Management Pty Ltd, had accepted its claim for losses and provided the timber company with a $10 million “progress payment”. Source: Timberbiz
“The balance of the claim is being progressed by the insurer, and further details will be released once the claim has been finalised,” the company said in a statement to the ASX.
“The Company is revising its business plan, taking into account short and longer term opportunities following the fire events disclosed previously.
“… The company will continue to advise the market as it determines its options for rebuilding the business.”
KIPT managing director Keith Lamb said the insurance policy was capped at $65 million annually, which it would be seeking in full.
The company now faces a massive salvage operation to monetise the fire-affected timber, as it continues argue for a deep-sea port on the island.
Mr Lamb said building the port was the best option to deal with the timber, warning that without it, the company would have to fell and burn much of what remains – which would emit huge quantities of carbon dioxide – or using barges to take the timber off the island; a process that could take 20 years to complete.
He estimated the earliest possible timeline to get the necessary approvals for a port, and build it, at 12-to-18 months.