Deal #3017

Land area

Intended size

20 000 ha

Size under contract (leased or purchased area)

[2004, current] 20000 ha

Size in operation (production)

[2011] 10400 ha
[current] 18481 ha

Comment on land area

Part of the concession will be used to regenerate native bush. Another source states 6500ha (project area). Another source states 21500 ha. Three locations, however, we only have polygons for two locations indicating a size under operation of around 16 000ha in 2020.

Intention of investment

[2004, current] Forest logging / management for wood and fiber, For carbon sequestration/REDD (20000 ha)

Comment on intention of investment

The state granted the company a licence to develop three timber plantations; the licence comes with strict conditions (e.g. no permission to grow food crops or allow cattle grazing). The company has applied for certification for carbon offsetting.

Carbon offset project

Yes

Comment on carbon offset project

One of the three areas (Namwasa Plantation) is registered at CDM.

Nature of the deal

Concession

Negotiation status

[2004] Concluded (Contract signed)
[2012] Failed (Contract cancelled)
[2013, current] Concluded (Contract signed)

Comment on negotiation status

NFC does not own or lease the land. The contract failed due to a $15 million loss. The company is active again after conflict resolution took place with the affected communities.

Implementation status

[2005] In operation (production)
[2012] Project abandoned
[2013, current] In operation (production)

Comment on implementation status

Has already planted around 12 million pine and eucalyptus trees on 9,300 hectares.

Contract farming

Yes

Comment on contract farming

Plans on having an outgrower scheme