Plantations

Tanzania

Green Resources has three main plantations in the Southern Highlands of Tanzania all managed by Green Resources Ltd (GRL) with 7,900 ha of forest. The land allocated to Green Resources in the Southern Highlands covers more than 100,000 ha in various stages of the land acquisition process, including 34,000 ha of titled land. In addition to the Idete, Uchindele and Mapanda plantations, trial planting has been initiated in Kitete and Masagati. The potential planting will be completed in the initial plantations, but local and district communities are awarding additional land to Green Resources such that the activity can continue and the level of employment can be maintained. The objective of the Southern Highlands plantations is to produce high-quality sawlogs and transmission poles, while the residuals are being used for energy production, partly to supply the company’s own industrial operations at Sao Hill Industries.

Idete

Idete Forest is located in the Mufindi district, Iringa region. It is 20km from Kiyowela railway station and 110km to the main tarmac road at Mafinga, which goes to Dar es Salaam. Out of the 14,176 ha titled area, 9,010 ha are plantable, with 3,498 ha set aside for conservation and 1,668 ha for other uses. The objective of Idete is to grow trees for carbon storage and to harvest forestry products for sawn timber, utility poles and renewable energy. There is a potential for a future pulp mill or a pellet factory in the Southern Highlands/ Kilombero valley and the pulp wood from Idete and Uchindele would be well suited to providing feedstock for such a mill, or to satisfy expanded demand from Mufindi Paper Mills. Pine for sawn timber is grown on 21-year rotations, while eucalyptus for utility poles is grown on 13-year rotations. In 2008, 806 ha of net new forest were established, taking the total established plantation to 1,204 ha. Of this, 59% are eucalyptus species including eucalyptus grandis, eucalyptus saligna and eucalyptus camadulensis and 40% are pinus patula and pinus elliotii. So far in 2009, a further 926 ha have been planted. The land is situated at an altitude between 1,100m and 1,550m with mean annual rainfall approximately 1,050mm with the rainy season from November to May. The mean annual temperature is 160C. The forest is seeking CDM certification and is in the process of responding to corrective action requests (CARs) to the project design document (PDD), with full certification expected before the end of 2009. The carbon credits (tCERs) generated from the project have been sold, pending approval by the UNFCCC, putting in place a basis for aggressive expansion of the project. Pre-evaluation for FSC has taken place and progress continues towards full certification.

Mapanda

 Mapanda Forest covers 6,258 ha and is located in the Mufindi district, Iringa region. It is 130km to the main tarmac road at Mafinga and 750km from Dar es Salaam. Out of the total area, 3,536 ha is plantable, with 753 ha set aside for conservation and 1,948 ha for other uses. In 2008, 409 ha of new forest were established, bringing the net established plantation area to 1,908 ha. The main species are pinus patula (72%) and eucalyptus grandis and saligna (27%). In 2009, 568 ha of pine were planted. The aim of Mapanda is to grow trees for carbon sequestration as well as to harvest wood for sawn timber, transmission poles and renewable energy. Alongside Uchindile, FSC certification for the project was attained on 8 August 2008 and voluntary carbon standard (VCS) certification was achieved on 17 July 2009. The land lies at an altitude of 1,400m-1,760m with the mean temperature 140C. Average annual rainfall is 1,050mm with the rainy season from December to April.

Uchindile

The 3,160 ha Uchindile Forest is located in the Kilombero district of the Morogoro region in Tanzania. About 184 ha of eucalyptus were planted during 1996 and 1999, which are being harvested at the moment, creating the first major income for the plantation. It is 70km from the main tarmac road at Mafinga, which is the main road running south-west from Dar es Salaam. It is 7km from Uchindile railway station which runs 500km to Dar es Salaam. Uchindele spans 12,121 ha, of which 7,252 ha of the land are plantable, and 1,700 ha are set aside for conservation, with 3,161 ha for other uses.  About 5,000 ha of the titled land was, by mistake, located within the Sao Hill Forest Project, and the Ministry of Natural Resources has indicated that it will issue a long-term planting concession covering this land. In 2008, 500 ha of new forest were established, taking the plantation to 2,830 ha, of which 44% is pine and 55% is eucalyptus. In the first half of 2009 another 336 ha was planted. The objective of Uchindile is to grow trees for carbon sequestration and to harvest forest products for sawn timber, transmission poles and renewable energy. The sawn timber from pine is grown on 20-year rotations and the eucalyptus is grown on 13-year rotations for utility poles. We believe it will be possible to reduce the length of rotation for eucalyptus. FSC certification was attained on 8 August 2008 and VCS certification was achieved on 17 July 2009. The trees in Uchindele are mainly pinus patula and eucalyptus saligna.

The coastal areas

 Green Resources has established two plantations located along the coast of Tanzania. The environment allows for different species to be grown including teak and other higher-value hardwoods, as well as acacia and other energy/pulp woods.

Lindi

The 600 ha Lindi Forest is managed by Lindi Forests Ltd (LFL) and located in the Lindi region, on the southern coast of Tanzania. It is 30km to the main tarmac road from Dar es Salaam to Mtwara and it is 60km from Lindi town. Of the total 13,000 ha, about 5,000 ha are plantable, 7,900 ha are to be set aside for conservation, due to the large areas of natural forest, and 100 ha are for other uses. The objective of Lindi is to establish a high value teak plantation for furniture as well providing wood for pulp production and renewable energy. The first planting occurred in 2008, with 251 ha of net new forest established, of which 95% was teak. Eucalyptus camaldulensis, eucalyptus tereticornis and other species such as darlbergia retusa, gmelina arborea, dovilis cafra, dovilis retusa, s. humilis, and pinus caribea were also established. During the first planting season in 2009, 456 ha were planted but the erratic rains may result in a low survival rate. The land lies at an altitude of 0-220m with annual rainfall of 700mm to 1,100mm and two rainy seasons. The mean annual temperature is 28C.

Tanga

 The 1,340 ha Tanga Forest plantation is managed by Tanga Forests Ltd (TFL) and is currently spread over 9,500 ha in Pangani district, Tanga region of north-east Tanzania. The headquarters is in Pangani, 50km south of Tanga City and its port and railway and 42km east of the main tarmac road running from Tanga-Dar es Salaam. Out of this area, an estimated 6,000 ha is plantable, with 2,500 ha set aside for conservation and 1,000 ha for research and other uses.  There is large potential for establishing forest in Tanga, but the land acquisition process is slow. Tanga could become a forestry centre for the Indian Ocean area. Green Resources is in the process of obtaining additional land in the neighbouring districts of Handeni, Klindi and Makinga and the total allocated area to date is be around 40,000 ha. The aim of the forest is to sequestrate carbon to partly finance planting, and to harvest wood for pulp production, renewable energy and to grow high-quality hardwoods wherever possible for the furniture industry. It will also help combat climate change. In 2008, 536 ha of new forest were established, including the first planting in the Handeni region, taking the total established area to 827 ha. In the first planting season of 2009, another 514 ha have been planted. 403 ha (49%) of the plantation are eucalyptus species including eucalyptus tereticornis, eucalyptus camadulensis and eucalyptus grandis. 198 ha (24%) are teak (tectona grandis) with another 226 ha of various other hardwood species. The land lies at an altitude of 0-200m above sea level with a mean annual temperature of 220C. The average annual rainfall is 1,350mm with two rainy seasons from mid March-May and mid November-December.

Mozambique

 Mozambique is a country of major focus for Green Resources. We have only beenpresent in Mozambique for two years, but we have expanded rapidly during this period. The aim is to expand our engagement in Mozambique to a similar level as in Tanzania (and probably higher). Our aim is to produce sawlogs and transmission poles for major building products operations in the highlands and to establish a world-scale pulp/energy plantation in the coastal regions.

Lurio

The Government of Mozambique has authorized the implementation of the Lurio forestry plantation and carbon sequestration project by Green Resources AS, Norway.   The project is primarily situated in Nampula province along the Nacala corridor, close to the railroad and the largest harbour in Northern Mozambique.  The 15 years project is the largest forestation project approved in Africa and is one of the best located new forest projects in the world.  The Government’s authorisation is based on a Framework Agreement signed in March 2009 allowing Green Resources to develop a feasibility study and proposal for a major forestation project in Nampula and Cabo Delgado provinces, based on a 50 years renewable land lease.

Green Resources has obtained permission to develop 126,000 hectares forest plantation for carbon sequestration, as well as producing wood for building materials, energy and pulp. In addition, Green Resources will assist in the establishment of 54,000 ha forests by local smallholders and companies. The new forest will be established on grassland and heavily degraded forest land.  The natural forest wetlands within the area will be protected and set aside for conservation.  Green Resources’ operations will be FSC certified, the most demanding international certification for sustainable forest management. 

The forest plantations are established to supply a wide range of forest processing industries, including sawn timber, panel board, charcoal, electricity and transmission poles, as well as supply a future world scale pulp mill.  The investment is expected to generate USD 1 billion of revenues, add more than 5% to Mozambique’s GDP and make a major boost to the country’s export revenues. The project expects to employ 12,000 people, of which more than 1/3 is expected to be women. The total investments are expected to exceed USD 2 billion.       

Green Resources proposes to undertake major community development programs as part of the project, including schools, dispensaries and roads. The local availability of high quality kiln dried timber and panelboard will enable Mozambique to develop a new export oriented furniture and joinery industry based around small and medium sized businesses, creating 10,000s of additional work places.  Equally important, it will provide electricity and other infrastructure to rural areas of Mozambique, while there will be large additional investments in the roads, rail and harbour before the project is completed.  The project will contribute to food security through a separate program for improvement of current agriculture practices, supply of agriculture inputs and technical assistance, in coordination with the provincial and local authorities.

The Lurio project is projected to absorb more than 30 million tons of CO2 and make a significant contribution to the global fight against climate change.  Africa has only received minor benefits from the Clean Development Mechanisms (CDM) created for developing countries through the Kyoto protocol established to combat climate change. Forestry is the one sector within the CDM mechanisms where Africa can become a major beneficiary of carbon finance.  Forestation is also a pre-requisite for successful reduction in emission from deforestation and destruction (REDD).  New plantations must be created to replace the harvesting that is leading to deforestation. 

Sanga Forest Project /Lichinga

The 906 ha plantation is managed by Malonda Tree Farms, 80% owned by GreenResources, and located in Sanga district,65km north of Lichinga, the capital of the Niassa province. A railway from Lichingaruns 795km to the deep port of Nacala.The 4,800 ha plantation under development in Sanga is part of 46,000 ha that the Malonda Foundation, a regional development company working in partnership with Green Resources, has contributed to the joint venture. Of the 4,800 ha in Sanga, 2,500 ha are plantable and 2,300 ha are set aside for conservation and other uses. The objective of Lichinga is to harvest the wood products for sawn timber and utility poles, while at the same time fighting climate change. The project will seek carbon certification under clean development mechanism (CDM) methodology for areas that are eligible, as well as for areas where there is avoided deforestation. In 2008, 459 ha of new forest were established, taking the established plantation up to 697 ha. The trees are mainly pine (66%) and eucalyptus (32%) species, as well as afzelia quanzensis. In the first half of 2009, another 209 ha were planted, with another planting season due later in the year. The land lies at an altitude of 1,100m, with shallow and dry soil conditions. The mean annual rainfall is 1,200mm with a rainy season from December to February and the mean annual temperature is 26C.

The 906 ha plantation is managed byMalonda Tree Farms, 80% owned by GreenResources, and located in Sanga district,65km north of Lichinga, the capital of the Niassa province. A railway from Lichingaruns 795km to the deep port of Nacala.The 4,800 ha plantation under development in Sanga is part of 46,000 ha that the Malonda Foundation, a regional development company working in partnership with Green Resources, has contributed to the joint venture. Of the 4,800 ha in Sanga, 2,500 ha are plantable and 2,300 ha are set aside for conservation and other uses. The objective of Lichinga is to harvest the wood products for sawn timber and utility poles, while at the same time fighting climate change. The project will seek carbon certification under clean development mechanism (CDM) methodology for areas that are eligible, as well as for areas where there is avoided deforestation. In 2008, 459 ha of new forest were established, taking the established plantation up to 697 ha. The trees are mainly pine (66%) and eucalyptus (32%) species, as well as afzelia quanzensis. In the first half of 2009, another 209 ha were planted, with another planting season due later in the year. The land lies at an altitude of 1,100m, with shallow and dry soil conditions. The mean annual rainfall is 1,200mm with a rainy season from December to February and the mean annual temperature is 26C.

Uganda

Uganda is the source of the Nile and the cradle of Green Resources. The company has two plantations in Uganda being managed under two different companies. Large expansions of the forestry business are not possible in Uganda due to strong land pressure. However, the country could become a major producer of solid wood products, becoming the main supplier of wood-based building materials to the Great Lakes region.

Bukaleba

 The 2,545 ha Bukaleba Forest, managed by Busoga Forestry Company (BFC), is located on Lake Victoria in Mayuge district, 40km south-east of Jinja, 120km east of Kampala, the capital of Uganda, and 120km from the Kenyan border. The main Kampala- Mombassa road and railway are close. The total area is 9,215 ha, of which 5,780 ha are plantable. In 2008, 595 ha of new trees were planted taking the total standing plantation to 2,259 ha. 287 ha have been added so far in 2009. The plantation mainly consists of pinus carribea (72%) and eucalyptus grandis (23%), with 2009 pine being grown for sawlogs on 20-year rotations and eucalyptus being grown for utility poles on 10-12 year rotations. Small-scale pole harvesting started in 2007, and large-scale harvesting for the company’s own treatment plant in Jinja will start in 2009. In 2004, BFC joined a grant programme funded by the EU and the Sawlog Production Grant Scheme (SPGS see ), which included extensive training and grants covering 50% of the planting costs. BFC successfully completed planting and maintenance of 1,000 within this programme. The average altitude of the land is 1,100m with very fertile soil conditions. The mean average temperature in the project area is 230C and the average annual rainfall is 1,250mm with two rainy seasons from March-May and September-November.

Kachung

The 660 ha Kachung Forest is managed by the Norwegian Afforestation Group (U), which was acquired in 2007 by Green Resources, and is located in Dokolo District, 30km south of Lira, in Northern Uganda. The plantation area covers a total of 2,670 ha, of which 2,080 ha are plantable with 517 ha set aside for conservation and 73 ha for infrastructure. In 2008, 467 ha of new forest were established, taking the total plantation size to 596 ha, mainly

consisting of pinus carribea (79%) and eucalyptus grandis (21%). A further 171 ha were planted in the first planting season of 2009. The aim of the project is to grow trees for sawn timber and utility pole production as well as sequester carbon under the CDM afforestation methodology. Pine trees for sawlogs are grown on 20-year rotations and 160 ha have benefited from SPGS grants. Eucalyptus for utility poles is grown on ten-year rotations. Pre-evaluation for FSC certification is in progress and development of a PDD for CDM validation is under way. The land lies at an average  altitude of 1,000m and the mean temperature is 28C. The average annual rainfall is 1,250mm with a rainy season from March to May and a second one from August to October.