Integrated forestry company Gunns Ltd (ASX: GNS) says the Federal Government had extended, by one week, the process for final environmental approvals under the EPBC Act for the proposed Bell Bay pulp mill. The deadline for approval has been extended to 10 March 2011.

The extension was granted following the provision by Gunns of additional information which seeks to enhance the environmental position of the mill. These more stringent environmental aspects have been proposed by the company following consultation with community and environmental non-government organisations.

Gunns has asked Environment Minister Tony Burke to give these improvements regulatory force through the permitting process. Gunns Managing Director Greg L’Estrange said the enhancements were part of the company’s continuing commitment to best practice.

“We want to ensure we build this pulp mill using the best-available technology, with the best environmental controls available,” he said.

“We are pleased that Minister Burke and his department are willing to give further consideration to these enhancements.”

Pending the pulp mill announcement, Gunns shares entered a trading halt at 53.5 cents, down 1 cent for the day.

The company’s stocks off 14 per cent in 2011 compared with a 1 per cent gain for the ASX200 benchmark index.