Deal #329

Location #1

Spatial accuracy level
Country
Location
Sarawak, Malaysia

Target country
Malaysia

Land area

Size under contract (leased or purchased area, in ha)
[2016] 1330000
Comment on land area
The logging concessions do not seem to be one time logging concessions: "The independent technical review commissioned by Samling in advance of its IPO in 2007 estimated that of the net operable area of the company’s concessions in Sarawak, 82 per cent has already been logged over at least once". https://www.regjeringen.no/globalassets/upload/fin/etikk/recommendation_samling.pdf

Intention of investment

Intention of investment
Forest logging / management (for wood and fibre), Industry

Nature of the deal

Nature of the deal
Lease
Comment on nature of the deal
15 forest concessions; harvesting rights

Negotiation status

Negotiation status
[1963] Concluded (Contract signed)
Comment on negotiation status
At least part of the concessions (probably five) were made before 2000. However, info on agreements is not very detailed: the start of Samling's logging business in Sarawak was in 1963. Between 1976-1993 the Group expanded its forest concession areas. The company was reorganised prior to 2005. This included, inter alia, the acquisition of several companies holding forest concessions (see Samling Group 2007, Global Offering, pp. 116 f.). Out of the 15 concessions, five concessions needed to be renewed in the past 20 years (ibi., p. 140)

Implementation status

Implementation status
[1963] Startup phase (no production)
In operation (production)

Contract #1

Duration of the agreement (in years)
6

Operating company

Comment on investment chain
several different primaries: "The forest concessions are owned and managed by wholly owned subsidiaries of Samling Global’s subisidiaries"

 

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Data source #1

Data source type
Government sources
File
Date
2010-02-22

Data source #2

Data source type
Media report
File
Date
2015-11-02

Data source #3

Data source type
Government sources
File
Date
2010-10-13

Data source #4

Data source type
Media report
File
Date
2010-04-06

Data source #5

Data source type
Research Paper / Policy Report
File

Data source #6

Data source type
Research Paper / Policy Report
File
Date
2011-01-01

Data source #7

Data source type
Media report
File
Date
2012-11-07

Data source #8

Data source type
Company sources
File
Comment on data source
accessed 28:04:2015

Data source #9

Data source type
Company sources
File
Date
2007-02-23
Comment on data source
Samling Group 2007, Global Offering

Data source #10

Data source type
Media report
File

Data source #11

Data source type
Media report
File
Date
2015-11-03

Data source #12

Data source type
Company sources
File
Comment on data source
Accessed Date: 02:01:2017

Recognitions status of community land tenure

Recognition status of community land tenure
Indigenous Peoples traditional or customary rights not recognized by government

Consultation of local community

Community consultation
Not consulted

How did the community react?

Community reaction
Rejection
Comment on community reaction
Samling stands accused of illegal logging

Displacement of people

Comment on displacement of people
at least on parts of the concessed areas, government allows communities to live on or near concessions and plantations held by the company

Promised benefits for local communities

Promised benefits for local communities
Health
Education
Productive infrastructure (e.g. irrigation, tractors, machinery...)

Former land cover

Former land cover
Forest land

Detailed crop, animal and mineral information

Crops area
Accacia, Eucalyptus, Teak, Trees (unspecified)

Use of produce

Has export
Yes
Country 1
Japan

In country processing of produce

In country processing of produce
Yes

Overall comment

Overall comment
Samling holds 1330000 ha of forest concessions for timber extraction in Sarawak. Additionally, the company holds 438000 ha of forest plantations for the production of trees. Through its subsidiaries Lingui and Glenealy, it holds another 68669 ha of oil palm plantations (deal #327, area for oil palm production is not included in this deal). The company is criticised for environmental and human rights violations. Moreover, land rights cases against it have been working through the courts since 1998. (2016) The investor is under probe for illegally logging totally permanent areas and national parks

June 9, 2019, 3:44 p.m.

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June 11, 2015, 6:05 p.m.

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Feb. 15, 2013, 4:59 p.m.

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