Billionaire Andrew Forrest becomes a shareholder in a company that operates the Abrolhos Islands fish farm
Iron ore miner Andrew Forrest has bought a nearly $ 20 million stake in a Tasmanian-based aquaculture company that plans to establish a 2,200 ha fish farm in the Abrolhos Islands.
The Forrest family’s holding company, Tattarang Agrifood, on Monday acquired a 7.33% stake in Huon Aquaculture, which generated a loss of $ 95.3 million for the six months to December of last year. due to the COVID-19 pandemic.
The company reported in February that the onset of the pandemic coincided with a significant increase in production, the foundation of which had been laid two years earlier.
The five-year capital investment program was designed to modernize Huon’s infrastructure and increase production capacity to meet the expected growth in demand in the near future.
But the company said the impact on demand in the last quarter of fiscal 2020 and fiscal 2021 meant that alternative markets had to be found, with oversupply creating significant downward pressure on the market. the price of salmon.
Huon also had two separate incidents in November involving damage to the nets of fish pens, resulting in fish escapes costing the company about $ 2 million.
The company announced earlier this year that it had appointed consulting firm Grant Samuel to undertake a strategic review of the business in light of poor performance during the pandemic.
Huon Aquaculture received a license to operate a commercial scale culture in sea cages in the Abrolhos Islands in February.