GFC still short listing companies for logging lands

May 28, 2017 News

– Cabinet to receive report by mid-June
While the Board of the Guyana Forestry Commission (GFC) continues to evaluate over 17 companies that have applied to make use of the 1.6M hectares of logging land previously occupied by Barama, Minister of Natural Resources,

Minister of Natural Resources, Raphael Trotman

Raphael Trotman, is confident that Cabinet will be receiving a report on the matter within another two to three weeks.
“I expect to be able to apprise Cabinet by mid-June. We have a number of applications in and I should get the report with the recommendations for Cabinet’s consideration very soon.”
Trotman said that both local and foreign companies remain highly interested. The Minister recalled that there are 17 different companies which submitted applications to benefit from the lands.
“We have asked the Board of GFC to do the narrowing down; it will then send to the Ministry its recommendations based on suitability and capacity and so forth, I will take the report to Cabinet; then we will make the final decision,” said Trotman.
He recalled what was published to the effect that government will be redistributing the forestry lands that were allocated to Barama. The 1.6M hectares of land will not be redistributed as a single block but rather will be divided into four blocks; one will be held reserved for conservation, one will be held for small loggers and two have been advertised for international companies.
Previously Trotman warned that companies looking to capitalize on the available forest concessions will have to prove they employ sustainable forestry practices.
He also told Kaieteur News that investors coming on board Guyana’s logging industry are going to benefit from a level playing field. They will only enjoy duty free concessions that are linked directly to their investments. In short, there will be greater scrutiny to the extent that neither Guyana nor the investors will be shafted.
Last October, Barama announced its decision not to extend its forest concession agreement with the Government of Guyana.
The company wanted to concentrate on downstream activities like sawmilling and its veneer and plywood factories.
Barama’s forestry concessions were the largest by a single company in Guyana. The Malaysian-owned business came here in the 1990s and at the height of its logging and related activities had over 1200 workers. It had been engaging the new administration since last year for a renewal of its licences but did not continue the negotiations this year after world prices affected operations.
The company had operations in Land of Canaan, East Bank Demerara and Buck Hall, Essequibo River.
The company said that the relinquishing of its forest holdings will see employment losses of up to 500 persons. Many of the staffers have already been sent off.
Barama was considered the biggest player in the timber industry and was one of the two biggest investors- along with the Guyana Telephone and Telegraph Company- back in the ‘90s.
World prices for timber have fallen with a number of local companies continuing to feel the squeeze.