MARCH 11, 2023
Prime Minister Hon. James Marape has reiterated his call on the logging industry to venture into downstream processing than to continue exporting
He made the call on Friday, March 10, 2023, at remote Kurindal in Lasul-Baining Local Level Government (LLG), Gazelle, East New Britain, when launching the brand-new KKC Veneer Mill. This is a project fully supported by Gazelle District, East New Britain Provincial Government and landowners.
This is the second veneer plant in the country after Angoram in East Sepik and the Prime Minister wants it to be the building block for transformation into a Special Economic Zone (SEZ) in Lasul-Baining. Earlier this month, he visited the Gabon SEZ in Central Africa and saw for himself how downstream processing of logs was transforming the economy of this country
PM Marape was accompanied by Forests Minister Hon. Salio Waipo, Fisheries Minister and Gazelle MP Hon. Jelta Wong and Housing Minister Hon. Dr Kobby Bomareo.
The mill is very much is in line with the Marape Government’s push for downstream processing of logs and other resources.
It is providing employment and training to hundreds of young people, as well as building the local economy, in this rural area of East New Britain.
“We have to add value to our resources,” PM Marape said.
“Logs which are downstream processed add four to five times more value to round log exports.
“This is why my Government is committed to stopping round log exports by 2025, the only exception being traditional landowners.
“Logging companies who have been in the country should follow the example of KKC and go into downstream.”
PM Marape commended KKC for venturing into such a remote part of East New Britain and transforming the lives of the people.
“This project employs 500 to 1000 people,” he said.
“It spins around about K100,000 every month into the society here, and indirectly embraces 3000 to 5000 people, in terms of business spin-offs.
“It is a wonderful testimony to partnership between national government, provincial government, district, local level government, people and investor.
“This is a project which confirms to the rest of the country that you (Lasul-Baining) are not a forgotten place and people. God has blessed you with natural resources.
“Many people say this LLG is the ‘last place’, however, you deserve the presence of Government and companies.
“This project affirms that even the most-remote areas can be unlocked for their economic potential.”
PM Marape said such companies like KKC Veneer Mill, which brought development into rural areas, deserved incentives like tax holidays, reduced export levies and tax deductions.
The KKC Veneer Mill is located on a 300-hectare run down cocoa and coconut plantation purchased from Agmark.
The mill has a berthing facility and a sustainable energy plant to provide power for the operations.
When it is in full operation, it will take about 200,000 cubic metres of round log and process it into timber, plywood, wood chip and pellets.
When it goes into full operation, the company will employ up to 3,000 people. Currently, it employs up to 1,000 people who work in various areas like logging, mill, reforestation, shipping, road infrastructure and power production.
Logs will be harvested from natural forest and plantations.