Malaysia-PNG timber deal

Malaysia-PNG timber deal

KUALA LUMPUR (AFP): Malaysian property firm Damansara Realty Bhd. will acquire control of a timber firm in Papua New Guinea (PNG) to develop a mammoth agro-forest project on the island under two deals clinched yesterday, officials said.

Under one of two agreements signed, Damansara would acquire 85 percent equity in Aitape Agro-Forest Pty. Ltd. from Arrow Pacific Timber (PNG) Pty Ltd. for 108,375 ringgit (US$43,350).

The other agreement involved the setting up of an agro-forest project with an initial investment of 60 million ringgit ($24 million), Bernama news agency quoted Damansara chief executive Abdul Rahim Bakar as saying.

The project, on a 150,000-hectare (370,657-acre) area in West Sepik province, would be undertaken on a joint venture with Siau- Batai Pty Ltd, another PNG company which owned the land, he said.

The first phase of the project would be spread over seven years and cover extraction of timber on 40,000 hectares, generating 330 million ringgit ($132 million) in revenue, Abdul Rahim said.

Most of the timber-extracted area would then be planted with oil palm, he said.