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WORLDWIDE FOREST/BIODIVERSITY CAMPAIGN NEWS

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

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Forest Networking a Project of Ecological Enterprises

http://forests.org/

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)

###RELAYED TEXT ENDS###

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