Shortlist for sandalwood contracts

A subsidiary of TFS Corporation and a joint venture between a Melbourne oils producer and a local indigenous business have been shortlisted for wild sandalwood oil processing contracts with the state government.

The Forest Products Commission plans to enter into contract negotiations with TFS-owned Mount Romance Australia, and a new joint venture between Australian Botanical Products and Dutjahn Custodians.

Dutjahn is a newly formed company, equally owned by three shareholders including Kutkabubba Aboriginal Corporation, which is getting back on its feet after dealing with an internal fraud issue that cost an estimated $300,000.

Melbourne-based ABP is an established producer and supplier of oils and fragrances to the pharmaceutical and fragrance industries.

Forestry Minister Mia Davies said if final commercial negotiations were successful, the FPC would continue to supply sandalwood to Mount Romance in Albany, as well as introducing the newly formed joint venture based in the Goldfields.

“This partnership proposes to distil high-quality oil from sandalwood harvested in the Goldfields region and focus on employment of local Aboriginal people,” Ms Davies said.

"The state government started a review of the harvest and haulage sector of the sandalwood industry in 2012 and new oil processing arrangements will complement broader reforms occurring across the state's sandalwood industry.

"The state government has actively sought input into the structure of the industry from a broad range of stakeholders and I am pleased the results of the process can deliver on key government and community objectives, including increased participation of local communities and Aboriginal groups.”

The state government also said two other contracts for the processing and marketing of sandalwood were currently being finalised.