The owners of the mothballed Triabunna woodchip mill on Tasmania's east coast have confirmed the mill will need 'massive' government subsidies if it is to re-open.
Triabunna Investments has confirmed it is waiting to see if the mill will be subsidised as part of the forestry peace deal, signed last week.
General manager Alec Marr says the only way the mill could run would be with massive government subsidies because market conditions are at the worst they have ever been.
The company hopes to speak to people involved in the peace deal process over the next few weeks.
Mr Marr would not disclose how much money would be needed to reopen and operate the site.
Deputy Opposition Leader Jeremy Rockliff was asked whether the State Government should comply.
"The Liberal Party policy quite clearly is that we support the reopening of Triabunna," he said.