Foreigners register company locally for logging operation

Oct 27, 2021 News

…plans to export Wamara, Greenheart, and other species to Malaysia

Kaieteur News – A Guyanese company registered at Peter’s Hall on the East Bank of Demerara (EBD) under relevant local laws as a domestic company, has applied to set up a logging operation in Guyana’s Kwakwani, Berbice, area.

The location of the company’s concession on the map

The company, which on paper is Guyanese, has as its principals Chinese and Malaysian officials and no Guyanese in its ownership structure.
The company—Surich Forest (Guy) Inc.—in the Project Summary section of its application for State Forest Exploratory Permit, has listed as its Chairman of the Board of Directors, Mr. Mei Hao, a Malaysian national.
His core responsibilities are listed as strategic planning and corporate development.
Surich Forest (Guy) Inc. has as its General Manager, Mr. Yu Mingxing whose core responsibilities are identified as having “overall direct responsibility for day-to-day operations in Guyana.”
He is a Chinese national. The company’s Forest Manager—next in the management structure—is listed as Mr. Yu Ming Huat, a Malaysian, whose duties include “forest concession development, environmental management, stakeholder liaison for Guyana Forestry Commission (GFC) matters.”
Mr. Raymond Ting Hwang Hieng, another Malaysian national, is listed as the company’s Commercial Manager, with responsibility for the company’s marketing and sales.
Recruitment of employees, and development of Human Resources policies, is the responsibility of the company’s Administrative and Logistics Manager, Mr. Yuan Zhenbao, a Chinese national, while all accounting matters are left up to its Accounting Manager, Mr. Kenneth Tang Sai Hung, another Chinese national.
The company first acquired its State Forest Exploration Permit (SFEP) in March last year, which comprises a total area of 52,897.23 hectares (ha) divided into two blocks. The locale for the forest concession is described as being on the left bank, Corentyne River (Kanakaburi-Mapenna District) with an area of 17,035.68 ha, and the second one located on the left bank, Corentyne River (Kuruduni-Timehri District), with an area of 35,861.55 ha.
The company said it “did a rapid assessment of the variables associated with timber harvesting operations in Area ‘A’ and Area ‘B’, after which the company determined that a logging operation would be feasible.”
According to the company’s project summary, which was last updated in April last, a number of species of logs are available for extraction including Wamara, Wallaba, Greenheart, Kabukalli, Suya, Purpleheart, Locust, Baromalli, Tauroniro, Hububalli, Shibadan and Dakama, among other species.
Surich Forest (Guy) Inc., in its project summary said its core business objective is to harvest timber from the concession area in line with conditions agreed with the GFC.
The logs harvested are to be conveyed to a log processing facility in Region 10 or Region 4, or exported according to GFC export policy.
The company said it has linkages in Malaysia, which will allow for the full utilization of the local logs through the development of timber products based on the properties of each species.
It was noted that the company’s preference is to construct a wood processing facility in Guyana, but highlighted the cost per Kw/hour for electricity as a major deterrent on the local scene.
The company said it plans to invest some US$4M between 2020 and 2022.

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