Monday, April 30, 2007

Bai Shan Lin mum on log ban

http://www.stabroeknews.com/index.pl/article?id=56519246
Stabroek News

Forest company Bai Shan Lin says it is not prepared to make a statement at this time on being banned from exporting logs for failing to comply with its processing commitments.

The company had in January announced its US$4.5 million investment plan for wood processing but the Ministry of Agriculture, which has responsibility for forestry, got tough on the company.

Speaking on the company's behalf on Tuesday, Bai Shan Lin's Administrative Manager Karen Canterbury would not confirm whether or not the company would be making a statement in the near future.

The Ministry of Agriculture two weeks ago in a press release said that the Chinese-owned company, registered in Guyana, "was prevented from exporting round logs," since it was a move contrary to earlier commitments given by the company to the government.

The company had appealed to Agriculture Minister Robert Persaud to allow a grace period of 12 months during which the export of round logs would be allowed, but the Minister did not budge. Instead, he reminded the company of the commitment it had expressed to become engaged immediately in value-added activities and encouraged it to move in this direction.

According to the Ministry, during the past six months, senior personnel of Bai Shan Lin held several discussions with government representatives including Prime Minister Samuel Hinds, Minister Persaud, the Guyana Forestry Commission (GFC) and the Guyana Office for Investment (Go-Invest).

The government is expected to release its policy on log exports shortly and is currently looking at recommendations from a consultation on log exports.

Back in January, the company said that it plans to invest US$100M over the next three years for value added processing as well as timber harvesting. It had expressed the hope of having an annual production capacity of between 300,000 and 500,000 cubic metres

To date, more than US$10M worth of various kinds of logging equipment has been brought in from China and other countries. The company has already received a sum of US$5.1M to facilitate the project.

It plans to establish two large-scale timber processing factories in Linden and Georgetown and has purchased a sawmill in Linden which was previously owned by Jaling Company and discussions have commenced with government officials about the expansion of the factory site.

The company is 49 per cent owned by BUCC, a construction company of China which has businesses in various countries of the world. Funding for Bai Shan Lin comes directly from BUCC.

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