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PRESS RELEASE - 4th June 2003

One Thousand Hectares Secured For Mallee Plantings to Offset Greenhouse Gas Emissions

The Oil Mallee Company has secured 1000 hectares of land in the Kalannie - Wongan Hills region on behalf of the Japanese power company KANSAI for the establishment of mallee eucalypts to offset greenhouse gas emissions.

The land has been acquired under a special lease arrangement and the trees will be planted on belts across farmland. KANSAI will pay lease fees and all of the costs of establishment and management during the 20 year term of the contract.

General Manger of Office of Environmental Considerations of Kansai, Dr. Taiichiro Suda, said. “Kansai is delighted that the schedule for the forthcoming tree planting progresses satisfactory. We are pleased to hear that there have been good initial rains and we are looking forward to seeing the first trees planted “

The Kansai is one of the largest power companies in Japan. Its annual power generation is equivalent to the total power generated in Australia. The Company’s annual revenue is more than AU$37 billion dollars and it has more than 12 million customers including the residents of Kyoto, the city which lends its name to the Kyoto Protocol.

Professor Syd Shea, the Chairman and Managing Director of the Oil Mallee Company, said “I am confident that this pilot project would confirm that Western Australia was the best in the world to offset carbon dioxide emissions and that tree planting on the scale proposed to offset greenhouse gas emissions-3 million hectares,-would significantly ameliorate salinity.”

“I understand that the Commonwealth Government need to be cautious before entering into international agreements but it was inevitable that Australia would face “ecological trade tariffs " if it did not ratify the Kyoto Protocol.

“If we are committed to meeting the Kyoto targets it was difficult to understand why we
disqualified ourselves from the benefits of the protocol by not ratifying it.”

Professor Shea said “Our research confirms that planting trees to ameliorate salinity would be profitable venture if the carbon dioxide locked up in the trees could be sold”

Mr. Ian Stanley, the President of the Oil Mallee Association said “ The Kansai project was already bringing significant economic benefits to regional Western Australia. Significant employment had been generated by the growing of the two and half million seedlings required for the project and there would be more jobs generated as the planting program got under way.”

Contacts: Professor Syd Shea-0403 309 003 : Mr. Ian Stanley 96651034