AFRICA’S LARGEST FORESTATION COMPANY

Green Resources has 14,000 ha of forest and has planted more new forest than any other private company in Africa during the past ten years. Green Resources quadrupled the planting of new forest from 2005 to 2008. Green Resources is dedicated to building a large African forest industry

ENVIRONMENTAL AND SOCIAL RESPONSIBILITY

Green Resources aims to conform to high environmental, ethical, financial and social standards, and has certified its oldest forest according to the Forest Stewardship Council’s standards. It aims to be the preferred partner for local communities, the national government and international development and finance organisations.

STRONG ORGANISATION

Green Resources has 14 years’ experience in African forestry and the carbon credit business. The company has built up a strong organisation of local managers and expats with a proven record of success in tree planting, carbon credits and industrial operations. Green Resources is the only major forestry company in East Africa with predominantly local plantation managers.

HIGH-QUALITY CARBON CREDITS

Green Resources has a unique position as a low-cost supplier of carbon credits from its forestation and bioenergy operations. The carbon activity has a strong social and environmental profile, with most of the investments benefiting rural farmers and new forest resources partly replacing non-sustainable logging from natural forests, and all revenues being reinvested in the local economies. The carbon credit revenues are expected to recover an important part of the planting costs.

BEST LOCATION FOR FORESTRY

East Africa, in particular Mozambique and Tanzania, is probably the best place in the world to establish new forest plantations. Rainfall is good, and land and qualified employees are available. East Africa is closer to the major growth markets of China and India than most of its competitors in Latin America and Australasia, and reaches the Middle East by a short back-haul shipping route.

LOW-COST PLANTING

Green Resources takes a direct hands-on approach to business and has small overheads. Its planting costs are among the lowest in the world, and are a quarter of the costs in Australia, the country with the largest new plantations aimed at the Asian markets. The cost of pruning and thinning, which produces the highest value ‘clear’ logs, is the lowest in the world, creating the basis for a future value-added business.

LARGE AVAILABLE LAND AREAS

Green Resources has more than 100,000 ha of land available for planting, with additional areas offered by villages. It has a good record of land acquisition, typically holding land on 99-year or 50+50-year leases. The company’s strong organisation and good infrastructure is capable of managing the large amounts of land suitable for forestation. By using 2% of their land for forestry, Mozambique and Tanzania could each build a forest industry that is larger than South Africa’s and Green Resources aims to be at the centre of this development.

STRONG INDUSTRIAL GROWTH

The revenues from the company’s industrial operations have grown by 50% per annum since 2005, reaching USD 10mn in 2008 with good profitability. Green Resources has embarked on a USD 60mn expansion of the operations in Tanzania and expects to quadruple revenues again over the next five years.

LOCAL INDUSTRY LEADER WITH SECURE LOG SUPPLY

Green Resources’ Tanzanian sawmilling operations located in the Southern Highlands are the largest in East Africa. The company has a secure log supply from East Africa’s largest productive forest, which is located next to the mill. Green Resources is one of East Africa’s largest treated pole producers and has a small but fast growing joinery factory.

FAST GROWING LOCAL ECONOMIES

Green Resources operates in three of Africa’s fastest growing economies and most stable countries over the past ten years: Mozambique, Tanzania and Uganda.

STRONG SHAREHOLDERS

Green Resources has a broad and deep shareholder base, with strong industry, finance and local knowledge. The shareholders have shown long-term dedication to the company and can provide the required equity to finance company growth.