Logging companies urged to submit downstream processing plans

Logging companies need to submit their downstream processing plans to the office of the PNG Forest Authority.

Log pond at Salamaua, Morobe Province

Currently there are 107 logging projects around Papua New Guinea and 24 members are in forest industry association.

“By the end of the year companies must bring in their plan for downstream processing plan,” Managing Director Tunou Sabuin has said.

“If they cannot come up with a plan, they can pack up and leave.”

He said it is sweat equity and companies cannot always cry to the government for favours.

He said so far they have received some indications of about 10 companies who are genuine investors willing to support the downstream policy of the government.

Sabuin stressed currently their recovery rate is at 45 per cent and 55 per cent wastage.

He clarified it was because of this wastage that when the government is imposing tax, the investor argues but if they did better, they could cover their loss.

“We need to take back PNG by promoting downstream processing and cutting down on log export,” Sabuin said.

He said when companies really improve on the recovery rate, Papua New Guinea should able to know the true economic value of its forest resource.

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