Environmentalists claim an Australian timber company will be violating its own environmental policy if it buys a forestry project on the Tiwi Islands.

The Northern Territory Environment Centre says Great Southern Plantations’ A$50m bid for Sylvatech Ltd would involve clearing 25,000ha of native vegetation, contravening its policy to protect old growth forest.

The centre said the Tiwi Islands has the tallest and biggest eucalyptus forests in the Northern Territory.

Great Southern has denied any violation of its policies, saying the area to be cleared is scrub, not old growth forest.