Eco-Disaster as Malaysia's Rimbunan Hijau Moves Into Russian Taiga

12/13/97
OVERVIEW, SOURCE & COMMENTARY by EE
Russia has tendered its first forest area under long-term lease to a
multi-national company. Roads are to be built into the Samarga River
watershed wilderness near the Russian Far East city of Khabarovsk,
and open a large area of ancient taiga temperate forests for
exploitation. The emphasis is upon raw log export. The Pacific
Environment and Resources Center reports that the concession has been
awarded to Malaysia's Rimbunan Hijau (RH). The RH timber empire is
one of the world's largest logging ventures, with millions of
hectares of concessions in Malaysia's Sarawak province, Papua New
Guinea, Central and South America, Africa and Cambodia. Rimbunan
Hijau tripled the log exports from Papua New Guinea after starting
operations there in 1991, causing extensive damage and upheaval among
the indigenous communities and tropical lowland forest ecosystems.
This company is now claiming the forest management expertise to be
entrusted with the task of managing virtually all remaining large and
intact primary forest expanses worldwide. There needs to be a code
of conduct and practice for multi-national timber companies from
Malaysia and elsewhere that are operating overseas in ecologically
intact primary forests. At the minimum, certification, accompanying
conservation area designations, and major reduction in project scale
and harvesting rates are needed as the remaining forest wildernesses
of the World are sold and developed. The Siberian taiga wilderness
is of equal ecosystem value and planetary ecological importance as
the Amazon, and its loss to over-exploitative forest harvest
practices will constitute a major worldwide ecological and social
disaster with real consequences.
g.b.

LIST NOTE: A reminder, I provide this news relay and commentary
service in my individual capacity, and out of forest devotion and
admiration. All other standard disclaimers pertain.
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RELAYED TEXT STARTS HERE:

Title: Unique Russian Far East Taiga Forest Given To Malaysians
Source: Pacific Environment and Resources Center via Econet
env.siberia conference
Status: Distribute and use with accreditation to Source
Date: 12 Dec 1997 17:25:48 GMT
Byline: David Gordon

/* Written 2:56 AM Dec 10, 1997 by percvostok@glas.UUCP in
env.siberia */
/* ---------- "SUKPAI TENDER -- ENGLISH" ---------- */

From: percvostok@glas.apc.org (Pacific Environment and Resources
Center)

December 9, 1997

UNIQUE RUSSIAN FAR EAST TAIGA IS TENDERED AWAY
FOR 48 YEARS -- TO MALAYSIANS

Today in the Russian Far East city of Khabarovsk, the Administration
of Khabarovsk Region gave away 305,000 hectares of forestlands in the
Sukpai watershed in a long-term lease to the Malaysian Company
Rimbunan Hijau International. This is Russia's first precedent
of tendering forests in a long-term lease through an international
competition. The tender was carried out on the basis of Russia's new
Forest Code and a decree by the Governor of Khabarovsk Region.

The Sukpai watershed is located in the south of Khabarovsk Region, in
the northern part of the Sikhote-Alin mountain range. These forests
are well-known as habitat for a wide range of biodiversity, including
the Amur, or Siberian, tiger. These forests are part of a Territory
for Traditional Natural Resource Use for local indigenous peoples,
primarily the Udege, based in the village of Gvasiugi.

Khabarovsk Regional Forest Service representatives talked about the
necessity of "developing" these forests since 220,000 hectares are
considered "mature and overmature" (i.e. old growth) forests. The
lease will last 48 years, with an annual allowable cut of 550,000
cubic meters per year.

Nonetheless, Rimbunan Hijau representatives stated that timber
volumes on the given territory are likely to be less than those
originally announced by the Administration. One interested U.S.
company -- ITT Rayonier -- apparently withdrew its application due to
the inaccessibility of the timber and doubts about commercial timber
volumes. Leonid Panchenko, a representative of Rimbunan Hijau,
blamed old and inaccurate forest inventories for the potential lack
of timber volume.

Rimbunan Hijau immediately asked members of the tender commission to
"reserve" nearby forests for potential leases in order to provide the
promised timber volumes to the company. Commission members did not
answer this request, although one representative of the Forest Sevice
stated that practically no such forests are available.

Besides Rimbunan Hijau and ITT Rayonier, the Canadian company Taiga
Lumber also expressed interest in the tender. However, Taiga Lumber
was excluded from the competition. Thus, Rimbunan Hijau was the only
competitor in the tender.

Rimbunan Hijau announced that it had met with indigenous peoples
representatives and found "common approaches" with them. Apparently,
these "common approaches" involve an additional $100,000 investment
from the company to buy 11 vehicles -- four vehicles for the national
indigenous village of Gvasiugi, three for the neighboring village
Gornyi, and four for the town of Sukpai. However, no indigenous
representatives were included in the expert commission despite the
fact that the territory is a Territory of Traditional Natural
Resource Use. There were no other indigenous representatives at the
meeting, so it was impossible to confirm Rimbunan Hijau's statement
that it had found "common approaches" with the indigenous peoples.

Victor Borisovich Skachkov of the Regional Committee on Ecology
presented comments that showed that Rimbunan Hijau's Business Plan
does not include activities to protect biodiversity or to educate
environmental specialists. He also asked the company to look at the
possibility of certification for its timber using ISO 14000
standards. Rimbunan Hijau must take these and other comments into
consideration during the preparation of its feasibility study and
logging plans. Skachkov also stated that the feasibility study and
logging plans must pass muster during a State Environmental Impact
Review. Commission members said that Rimbunan Hijau will be required
to follow Russian environmental laws and logging rules.

Rimbunan Hijau announced that it plans to build a road from the town
of Sukpai to the coastal port of Nelma in order to export the timber.
Without the road, company representatives said that development of
Sukpai forests will not be economically viable. Construction of
this road, however, has been opposed by local and international
environmental groups since the road would bi-sect the Samarga River
watershed and open a large area of ancient forests for exploitation.

Rimbunan Hijau representatives refused to answer questions about
their interests in leasing forests in the pristine Samarga River
watershed of Primorsky Region, although their interest in leasing
these forests is well known.

Although Rimbunan Hijau stated that it will invest in timber
processing, the first stage of the company's project will primarily
focus on raw log exports.

Members of the tender commission did not ask any questions about the
history of the Rimbunan Hijau group and its enforcement of
environmental regulations in other countries.

Rimbunan Hijau is also offering $100,000 to the Khabarovsk Forest
Service for growing seedlings to be used in forest regeneration.
Within the next month, the company will give the Regional
Administration a one-time payment of $450,000 for the 48-year tender.

Ecologists in Khabarovsk Region underlined the importance of
following the development of the feasibility study and logging plans,
ensuring a full state environmental impact review, and monitoring the
logging itself in order to ensure full enforcement of environmental
norms and Russian legislation.

-- David Gordon
Pacific Environment and Resources Center (PERC)

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