High lumber prices have led the government of New South Wales to investigate selling A$1bn of its plantation forests.
Consultant ABN Amro AV has been hired to examine options for 582,000ha of trees, mostly pine.
The decision to look at capitalising on forestry assets follows increased building activity in Australia which has led to a rise in lumber prices.
Last month saw Carter Holt Harvey, the biggest lumber and plywood maker in Australia and New Zealand, sell 18% more lumber in Australia in the three months to June 30 than in the previous quarter in 2002.
