Gunns won't seek to renew sovereign risk agreement

SYDNEY, Nov 21 (Reuters) - Australian timber group Gunns Ltd (GNS.AX) has told Tasmania's state government it would not seek to renew its sovereign risk agreement for wood supply to its Bell Bay pulp mill project, the company said on Friday.

The agreement was made to provide security in the event of the state's forestry office being unable to supply its volume commitments under a wood supply agreement as a result of future changes in government policy, Gunns said in a statement. (Reporting by James Thornhill)