MagForestry completes first delivery of wood chips from new Congo facility to Europe

MagForestry recently commissioned wood chip plant located in the port of Pointe-Noire, Republic of Congo is operating successfully (IFI, February 2008, pp32-35). Production has achieved a target rate of about 2,000 t/d of eucalyptus chips with total production to date of approximately 70,000 t. The annual production target is 500,000 t of wood chips. De-barked eucalyptus logs are provided to the chip mill in 6 m lengths from the forestry operations of Eucalyptus Fibre Congo SA (EFC) which is 100% owned by MagForestry. In addition, MagForestry announced the successful delivery of its first FOB shipment of wood chips to a contract customer in Europe. The approximately 30,000 t shipment was successfully unloaded and payment received by MagForestry. A second 30,000 t ship is currently being loaded for delivery to a second customer in Europe on a delivered basis using a purpose-built Mitsiu ship, which has been contracted by MagForestry. Total contracted sales to large European pulp and paper customers are for 400,000 t/y with additional volumes planned for the spot market.EFC is an established sustainable-renewable forestry operation based on the planting and harvesting of fast-growing clones of eucalyptus trees which reach 22 to 26 m in seven years, at which point they are harvested and the area replanted. EFC currently holds an exclusive concession agreement with the Government of The Republic of Congo which expires in 2076. The plantation concession covers 68,000 ha of which 42,000 ha are currently planted with the balance expected to be planted from EFC’s expanded tree nursery over the next 18 months.

EFC shipped about 200,000 t of round logs to European customers in 2007 for proceeds of some $19 million. EFC has continued to ship logs through the first six months of 2008 after which the bulk of sales will be in wood-chips. Forestry operations continue to be streamlined through the acquisition of new equipment, ongoing training programs and competitive contract harvesting practices. EFC is now the largest private employer in the Republic of Congo.