Grande Mayumba and Corà Wood Gabon to form Joint Venture to strengthen Forestry and Timber Businesses

The joint venture will employ cutting edge technology to redefine the way forestry and timber operations are conducted in Gabon and the Congo Basin, reducing the impact of logging while prioritising carbon offsetting. Guided by the objective of ensuring optimum conservation of forest ecosystems on a productive and sustainable basis, the new business will gradually transition from the harvest of natural forest species to plantation-based forestry in previously degraded forest areas.

13,000 hectares of degraded forests will be planted – with yields increasing by up to 400% in these areas – ultimately allowing 90% of the overall concession of 400,000 hectares to be kept as a conservation area without impacting production volumes. Strict adherence to yield regulation and harvest scheduling will ensure the sustainability of the forest concession, while the minimal harvest of rare species for veneers will ensure tree biodiversity is maintained.

Port, yards and logistics operations

The parties will additionally bring together their port, yards and logistics operations in Gabon located at Mangali and Port Gentil, respectively. The joint venture will establish a robust and strategically integrated logging, timber and logistics production chain in Gabon and generate synergies and cost savings through shared services, logistics and central management, maximising value for all parties and streamlining the sustainable development of the areas covered by the forestry concessions.

Harvesting rights

The joint venture will manage harvesting rights over 400,000 hectares of forests for a period of 25 years, with the capacity to extract 80,000 to 100,000 cubic metres of logs per year. The new entity is targeting a capacity to process up to 115,000 cubic metres of log input per year within three years, before rising to full capacity after 6-10 years.

New timber processing infrastructure will encompass primary, secondary and tertiary transformation (including kiln drying, flooring, decking and furniture-making facilities), as well as processed materials for the construction industry, stimulating Gabonese competitiveness in these areas.

All forestry operations will comply with internationally recognised standards of best practice and adhere to Forest Stewardship Council and/or PEFC certification schemes and IFC best practice guidelines.

Alan Bernstein, Founder and Chairman of Grande Mayumba commented,

Stefano Corà, Director of Corà Wood Gabon SA added,