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WORLDWIDE FOREST/BIODIVERSITY CAMPAIGN NEWS

More Logging in Guyana

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Forest Networking a Project of Ecological Enterprises

     http://forests.org/

 

2/2/97

OVERVIEW, SOURCE & COMMENTARY by EE

Guyana's government has announced that logging is to increase by 400%

in the next 3-5 years as one of the last remaining largely intact

forest bioregions is to be dismantled and shipped away.  The World

Rainforest Movement provides an excellent update on the scourge of

industrial predatory logging.  Details are provided on bad corporate

timber industry actors moving into Guyana.

g.b.

 

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Title:    More Logging in Guyana

Source:   World Rainforest Movement

Status:   Distribute freely with accreditation to source

Date:     November 28, 1997

 

/* Written  6:43 PM  Dec  2, 1997 by gn:wrm in igc:rainfor.genera */

/* ---------- "more logging in guyana" ---------- */

FOREST PEOPLES PROGRAMME

 

 

Guyana Information Update

 

28 November 1997

More Logging in Guyana

 

Logging in Guyana's forests is about to dramatically increase.  The

Minister of Forestry stated on November 9, 1997, that Guyana's present

production of 240,000 cubic metres per annum is expected to increase

to 1 million cubic metres within the next 3-5 years.  State Forests

were also recently expanded by 11.3 million acres and new legislation

was passed this Summer to permit the granting of Exploratory logging

concessions. On November 4, it was announced that applications had

been sent out to 5 companies concerning Exploratory leases.  The

Minister's November 9 announcement also stated that four major timber

companies have agreed to invest in Guyana in the near future.  Three

are Indonesian companies, one of which is the giant PT Barito Pacific

Timber.  Barito also recently acquired a large concession in 

neighbouring Suriname near the border with Guyana.

 

In 1993, Guyana negotiated a five year moratorium on new logging

concessions with international donor agencies.  The rationale being

that additional logging would be unsustainable and uncontrollable

given the state of official institutions responsible for forestry, 

especially the Guyana Forestry Commission.  Since that time, Guyana

has enacted environmental legislation, installed an Environmental

Assessment Board and an Environmental Appeals Tribunal and has

taken other measures to strengthen its capacity to monitor logging

operations.  The Government is also looking into establishing a

National Biodiversity Committee. Nevertheless, even with these

measures, monitoring capacity is still extremely weak and virtually

impossible in the newly declared State Forests of the South. 

Furthermore, most of the companies involved have poor environmental

records and Indigenous land rights issues have yet to be fully

addressed.

 

Guyana recently sent applications for Exploratory Leases to Malaysian

companies, Berjaya Berhad, Solid Timbers Berhad and Kwitaro

Investments (owned by the Mafira Group) as well as to Canadian,

Buchanan Forest Products Ltd., and Guyanese-Malaysian company, Case

Timbers (80% owned by Villupillai Kanagalingan).  An Exploratory Lease

permits each company to make an inventory of commercial timber,

develop necessary infrastructure and write a management plan to be

submitted to the Government.  The Government had previously signed a

Memoranda of Understanding with Berjaya, Kwitaro and Solid Timber, but

had to enact legislation legalising the Exploratory Leases before

proceeding further.  This legislation was passed in July of this year

over the objections of opposition parties who urged that the law be

withdrawn.  They accused the Government of moving with undue haste, of

not consulting with Indigenous peoples and said that the law "reeked

of collusion, conflict of interest and corruption."

 

The law requires that applications for Exploratory Leases be evaluated

by the Guyana Forestry Commission.  In doing so, tax records,

financial status and details of other operations must be submitted. 

If the GFC approves the application, the Exploratory Lease may then be

issued.  However, the press in Guyana is citing official sources

stating that the Government has already investigated the companies

involved and sees no problem with approving the applications. They go

on to say that it is expected that the Leases will be operational by

January 1998.  This casual disregard for the law is taking place even

before the applications have been approved: what will happen when full

exploitation licenses are granted?

 

Berjaya, Solid Timbers and Kwitaro each will get concessions of 80,000

acres in the newly extended State Forests of the South.  Buchanan will

get 600,000 acres on the Middle Mazaruni River.  This is part of the

territory of the Akawaio Indigenous people, many of whom don't have

titles to their land in this area.  Case Timbers will get a concession

of 500,000 acres contiguous with its existing concession of 154,000

acres and another under the name of UNAMCO, which is 237,000 acres. 

Case and its Malaysian partner own UNAMCO.  On July 21, 1997, Case

signed a Memorandum of Understanding with the Government for the

construction of a US$40 million plywood plant. The plant, which is

estimated to produce 7000 cubic metres of plywood per month is

expected to be operational by the end of 1998. 

 

In other news, on November 2, 1997, Demerara Timbers Ltd. (DTL) and 

the Guyana Government broke ground on a new US$20 million saw mill and

plywood plant.  DTL has also invested US$6 million in new logging

equipment.  DTL is working a concession of approximately one half

million hectares between the Essequibo and Upper Demerara rivers.  DTL

is owned by the Prime Group of Singapore, which is a conglomerate of

companies from South east Asia, including Turama Forest Industries of

Papua New Guinea, Indonesian, BP Batu Ampar Wood Industries and SK

Timber Corp. of Malaysia.  Turama had its logging permit suspended in

PNG for breach of contract and violation of environmental regulations. 

It was also accused of transfer pricing to escape paying taxes and

other duties in PNG.  The Prime Group also shares two directors with

the notorious Malaysian company, Ribunan Hijau, responsible for

massive destruction of forests in Sarawak and PNG.

 

According to Guyanese newspaper, the Stabroek News, Ribunan Hijau is

rumored to be in the process of acquiring the Prime Group.  The paper

reports that after a management shake up 3 months ago, log felling by

DTL doubled from 5,000 cubic metres to 10,000 cubic metres a month. 

Seventy percent of the logs are exported as round wood.  The

management shake up was directed by Ribunan Hijau fueling speculation

that it has already acquired the Prime Group or at least is

controlling a substantial part of its operations. Ribunan Hijau

recently extended its operations to the Brazilian Amazon near Manaus. 

It also has connections with Berjaya Berhad of Malaysia, one of the

companies that received an application for an Exploratory Lease. 

Berjaya is already working in Guyana through Case and UNAMCO.  It also

has a number of recently granted concessions in Suriname. Ribunan

Hijau is also suspected of having ties to  other companies operating

in Guyana.  Just how much of Guyana's forests are controlled by

Ribunan may never be known.  Nonetheless, Ribunan's record elsewhere,

where it demonstrates a total disregard for environmental laws most

likely will be repeated in Guyana. Both Berjaya and Ribunan Hijau have

also been involved in serious conflicts with Indigenous peoples in the

areas of their operations.

 

Indigenous peoples, whose ancestral lands cover large areas of

Guyana's forests have stated their opposition to logging and mining on

or near their lands on numerous occasions.  For instance, David James,

the President of the Amerindian Peoples Association of Guyana  stated

that  "to allow uncontrolled logging and mining in our lands will

ultimately benefit neither Guyana, nor the World, and worst of all it

threatens the survival of the Amerindian peoples and the environment." 

Indigenous peoples especially point to the fact that outstanding land

issues have yet to be satisfactorily resolved and that the Government

routinely ignores them when granting logging and mining concessions. 

International human rights standards provide that Indigenous peoples

have rights to lands occupied and used by them as well as to

participate in decisions concerning the use of those lands.  Guyana

falls short on both counts. Approximately half of the Indigenous

communities in Guyana have title to land, although the vast majority

of these state that their titled areas are inadequate, both in

comparison to their ancestral lands and for their basic subsistence

needs.

 

The other half have no title to any land and live a precarious

existence especially when confronted with logging and mining

operations.  Some communities complain that they are exploited as

cheap labour by logging and mining companies while others have entered

into agreements to sell timber on their lands, in most cases severely

damaging their forest  resources.  As logging increases the problems

experienced by  Indigenous peoples in Guyana

will also increase.

 

The recognition of Indigenous land rights was a condition of Guyana's

independence from the United Kingdom in 1966.  In order to implement

this decision, an Amerindian Lands Commission was established.  Its

report, issued in 1969, recommended that titled be granted to 24,000

square miles of a total 43,000 square miles identified as theirs by

Indigenous peoples.  In 1976, the Government granted title to 4,500

square miles little more than one tenth of that identified by

Indigenous peoples and less than 20% of that recommended by the Lands

Commission.  Additional titles were issued in 1991 to a few

communities, but the total area titled is still a fraction of that

recommended by the Lands Commission, let alone that identified by

Indigenous peoples themselves.  Large areas of these lands are now

being used for logging and mining despite the fact the Indigenous

peoples continue to assert their rights to them.  The concession

granted to Malaysian company, Barama, for instance, is larger than all

titled Indigenous land in Guyana combined.  The Government has only

recently began to demarcate Indigenous lands in Guyana.  However, the

money allocated is insufficient for more than a few communities. 

Moreover, Indigenous communities all over the country have rejected

Government offers of demarcation until all other lands issues are

resolved.

 

In conclusion, Prime Minister and likely next President, Janet Jagan 

has vowed to fight poverty by fostering expansion of the timber and

mining industries.  One has to wonder how exactly Guyana will be able

to expand logging and mining operations when the vast majority of the

country is already under concession.  The only major area left is the

ancestral land of the Wai Wai Indigenous people of  the deep South. 

The Wai Wai leader recently demanded that full title to Wai Wai land

be granted and rejected logging operations on those lands.  Also,

logging and mining may provide jobs for some, but experience has shown

that with few exceptions these operations have contributed to

increased poverty for Indigenous peoples. Finally, given the emphasis

that the Government is putting on extractive industries like logging

and mining, serious questions have to be raised about the inclination

of the Government to enforce environmental and human rights

protections.

 

For further information please contact,

 

Forest Peoples Programme

1c, Fosseway Business Centre, Stratford Road, Moreton-in-Marsh, GL56

9NQ, UK

Tel. 44. 1608. 652. 893, Fax. 44. 1608. 652. 878, Email :

wrm@gn.apc.org

Forest Peoples Programme / World Rainforest Movement (UK Office)

1c Fosseway Business Center, Stratford Road, Moreton in Marsh, GL56

9NQ, UK

Tel: 44 (0)i608 652893    Fax: 44 (0) 1608 652878   Email:

wrm@gn.apc.org

 

The World Rainforest Movement's International Secretariat is at:

Casilla de Correo 1539, Montevideo, Uruguay

Tel: 598 2 496192  Fax: 598 2 419222   Email: rcarrere@chasque.apc.org

 

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