as PDF file - Rimbunan Hijau (PNG)

RH GROUP NEWSLETTER
Issue: 11
April - June, 2008
A quarterly publication produced and published by the Rimbunan Hijau Group of Companies.
Published by
Public Relations
Department
A City within a City
Patron
James Lau
Editor
J.K.Balasubramaniam
Sub-Editor
Mathew Werigi
Annette Obed
Layout and Design
Annette Obed
Page 2
RH leads Forest
Plantation in NZ
RH Executive Chairman, Tan Sri Datuk Tiong Hiew King presenting a Momento to
Prime Minister Grand Chief Sir Michael Somare while RH PNG Managing Director
Mr James Lau looks on.
Page 3
Discribed as a “City within
a City” the K1 billion Vision City Waigani project
kick started in the beginning of June.
Executive Chairman of
Rimbunan Hijau Group Tan
Sri Datuk Tiong Hiew King
was present to witness the
ground breaking ceremony
by the Prime Minister
Rt Honourable Michael
Somare.
Papua New Guinea’s newest and largest hotel and
convention centre will provide additional jobs and
growth.
Construction of the 1
billion investment by RH
will take 7 to 10 years and
will feature more than 290
rooms and 120 apartments.
The 10 storey office development will increase PNG’s
office space by 60 000
square metres. Most importantly, the Vision City will
PNG’s Forest not
Under Threat
Page 4
Vision City
Ground Breaking
event
Page 5
Global Warming
and Globalisation
Page 6
RH eyes fish
farming in PNG
Page 7
Children’s Aids
Program get
Support
Page 8
NUS gets our
support RH
provide more than 1 800
jobs and more than 5000
people will be employed or
housed when construction is
completed.
In addressing the guest, RH
Executive Chairman Tan
Sri Datuk Tiong Hiew King
said the Retail operations in
the Vision City Mega Mall
will generate more than 200
million kina of economic
activity annually.
“The long term investment
proofs three things:
1. Rimbunan Hijau and
its shareholders are committed to PNG for the long
term. Vision City will
bring growth and prosperity to Port Moresby and
the Nation. Rimbunan
Hijau is approaching its
more on pg 4 & 5..
A model of how the Vision City will look after
completion.
‘A genuine partner in PNG’s nation building process’
RH Feats in NZ to Guide Plantation Forestry Efforts in PNG
Story by ANTON HUAFOLO
NEW Zealand is one of the countries in the world today
that is deriving a significant amount of benefits from its
vast forest plantation resources.
Researchers such as Tim Curtain of the Australian National
University have found that forestry resources, in larger part
forest plantations, have helped New Zealand to attain a
higher standard of living that it is enjoying today.
Their studies have shown that countries which have introduced forest plantations have not only protected the
environment but have also derived gains in increased
national revenue and social benefits, and New Zealand is
one example.
One of the companies leading the effort in plantation forestry in New Zealand is the Rimbunan Hijau NZ Group,
which has a number of forest plantations in the country,
contributing to national income, employment, taxes and
sustainable forest management practices through raising
seedlings, planting, adding value through silviculture (the
care of forest resources) and, harvesting and processing
of logs.
The group began acquiring land and planting in 1993
through a subsidiary, Ernslaw One.
Today, the company has 108,100 hectares of plantation
forests in New Zealand, with a 15-year harvest cycle.
Another subsidiary, Oregon Forestry NZ Ltd, currently
supplies seedling stock to Ernslaw One and other privately-owned plantations for planting in support of their
operations.
For New Zealand, studies have shown that the transition
from the harvest of round wood from natural forests to
better-controlled forest plantations ensures natural environment preservation and an increase in forest resources
output, including an increase in the country’s export receipts in the forestry sector.
Drawing from New Zealand’s vast experiences, can PNG
realise its potential in plantation forestry using a fraction
of its landmass?
Curtain, in his abstract Forestry and Economic Development in Papua New Guinea published by his university in
2005, observed: “Interestingly, the share of natural forests
in New Zealand’s production of round wood dropped
from 6% in 1993 to 1% in 1998, with plantations more
than compensating, since total output increased by 50%
in that period.
“This is a natural progression that has hardly begun in
Papua New Guinea, in part at least because of the difficulty
in securing government approval and landowner participation in the required transition, as plantations with their
long rotations require long-term leases if investors are to
come forward and finance them.”
Can these obstacles that Curtain outlined be overcome?
The Rimbunan Hijau (PNG) Group is working on a forestry
and silviculture initiative drawing on the experiences of
New Zealand and its plantation programmes elsewhere to
ensure that this becomes a reality in the near future, using
2
a fraction of PNG’s landmass.
The company will invest in a programme similar to that in
New Zealand, encompassing the identification of plantation sites in PNG in its reforestation efforts, which will
include raising seedlings, planting and value addition
through silviculture.
In a presentation to PNG government representatives, industry stakeholders and the media on March 16, RH (PNG)
executive director Ivan Lu said they had already started the
process towards reforestation and silviculture activities in
PNG, with plantation forestry high on the agenda.
He said reforestation and silviculture “will contribute to
the long-term prosperity of the forestry sector and Papua
New Guinea’s economy”.
“We are eager to implement practical reforestation activities on the ground in Papua New Guinea,” he stated.
“Sustainability and climate change have now become
global issues which could significantly affect the livelihood
of an industry such as forestry.
“It is not only an environmental issue, but a business and
economic issue as well.”
The company’s reforestation and silviculture initiative
will be in line with government policy in transforming
the industry and to ensure sustainable forest management
practices in PNG.
Mr Lu said RH would be mobilising private capital to
ensure the group’s reforestation and silviculture initiatives in PNG are fully realised. The company is presently
conducting intensive research to see if certain native tree
species are conducive at its Wawoi-Guavi timber resource
permit area in the Western province.
Based on the outcome of the research, RH will commence
planting a forest plantation at a “sizeable” Wawoi-Guavi
area and possibly elsewhere in the country in the near
future, with sawmilling and processing to be carried out
pictures of tree seedlings to be transplanted. Picture by
PNGFIA
‘A genuine partner in PNG’s nation building process’
cont’d next page....
Cont’d from previous page..
at its Kamusie sawmill and Panakawa veneer and sawmill
plants, also in the Western province.
The project will be supported by a nursery “carrying
capacity of 500,000 seedlings in Kamusie designed by
experts from Malaysia in consultation with the RH (PNG)
Group”.
In terms of benefits to the nation, forest plantations coupled
with downstream processing means that RH has the potential to double its earnings potential for the country to
over K140 million a year.
In addition, other benefits RH said that could be derived
from its forest plantation development initiative in the
country include:
* Eco-friendly sustainable timber production;
* Biodiversity restoration, regulation of stream flows,
sequester of carbon and the reduction of run-off or soil
erosion;
* The opportunity to participate in the carbon trade which
can provide additional revenue to the company and the
State;
* Diversification of the local economy with additional
opportunities for spin-offs;
* Harvesting and marketing of minor forest products;
*Creation of employment opportunities;
* Opportunity for those who are landless and others near
the plantation sites to plant food crops in plantation where
people would care for their food crops and the trees; and
* Opportunity for landowners to participate to supply the
plantation with seedlings, etc, on a long-term basis.
Plantation forestry is not new to PNG.
Whether some plantation’ operations are sustainable and
profitable today is anybody’s guess. But the RH initiative
in reforestation and silviculture can be seen as the start
for PNG to realise its full potential in the development
of its plantation forestry. Given the benefits are going
to be immense from plantation development in PNG; all
impediments to achieving this should be looked at and
addressed.
The company is prepared to finance its plantation forestry
initiate in a big way, but it has to be supported by the
National Government with a policy mix that fully supports reforestation in both socio-economic and ecological
aspects of sustainable forest plantations operations and
land use in PNG.
PNG’s Forests not under threat
The Papua New Guinea Forest Industries Association
(PNG FIA) welcomes the Australian Government’s Global
Initiative on Forest and Climate (GIFC).
PNG FIA said Papua New Guinea’s forest conditions are
unique and GIFC projects need to reflect PNG land tenure,
legal, policy and institutional arrangements and realities.
It said forest cover in PNG has been quite stable since
Independence. Land clearing reflects population pressures
(particularly in the highlands) and for agriculture. PNG‘s
forest endowment is not under threat from commercial
forestry. “But it does not follow that the scope for costeffective sustainable development and carbon absorption
outcomes under GIFC are any less in PNG than it is in
other target countries.
GIFC investments that encourage the momentum towards
sustainable forest management can achieve cost effective
outcomes. “Designed and implemented in concept with
PNG’s private sector forestry industry, GIFC offers the
prospect of two economic and environmental benefits in
the event that PNG participates in an Australian emission
trading scheme: access by Australian entities to low cost
abatement in PNG (subject inter alia to the risk premiums
on PNG permits); and financial incentives and capacity
building assistance to PNG from GIFC. It is not a case of
either/or. There are win/win opportunities,” the association said.
It said challenges include: PNG’s capacity to implement
and meet commitments; measuring its emissions from
increasing the carbon absorption capacity of its forestry endowment; and increasing the capacity of key institutions
Wawoi Guavi TRP
to deliver what Australia requires under GIFC.
The PNG FIA proposes some pilot projects where some
basic facts about the carbon absorptive capacity of PNG’s
forestry endowment require further analysis.
These proposals reflect the belief that there is scope costeffectively to increase carbon absorption from native and
plantation forestry – while also improving socio-economic
outcomes from PNG from the use of its environment
endowment.
The PNG FIA looks forward to working with the Australian
Government on this important initiative. It said misperception about the nature of the commercial forestry industry
in PNG have cost the Government and the people a great
deal. “The government and its people want to maximize
the sustainable development of its forestry endowment.
Constructive Engagement by GIFC officials with commercial forestry industry offers Australia the prospect of
maximizing the achievement of GIFC’s objectives, “said
PNG FIA.
‘A genuine partner in PNG’s nation building process’
3
More pictures of the Vision City Ground Breaking Ceremony......
Cont’d from page 1...
20th anniversary in PNG.
For nearly two decades we
have had our critics accuse
us of only being here for
the short term. The past
20 years have prove them
wrong. The next 10 years
and more will continue to
prove them wrong.
2. RH is not simply a forest company. Many people
here in PNG and abroad
assume that all we do is
timber. But we are a diverse
company with interest in
retail, media and transport.
3. and most importantly,
RH has the full confidence
in PNG’s economy. Economic indicators are strong.
Government initiatives are
creating a stable business
environment. Vision City
shows that it is possible
to make substantial long
term investment in PNG,
he said.
Prime Minister Sir Michael Somare
and RH Executive Chairman Tan Sri
Datuk Tiong Hiew King arrive for the
ceremony.
In his speech Prime Minister Sir Michael Somare
congratulated the Board
of Directors of Rimbunan
Hijau and said that, “the
long term and partnership
with the Government and
the people of this country
has been clearly demonstrated by your decision to
continue to do business in
this country, regardless of
Some highlights of the Ground Breaking Ceremony below
RH Executive Chairman
Tan Sri Datuk Tiong
Hiew King presenting
his keynote address.
All gearing up for the Ground Breaking Ceremony
and Mr J.K Balasubramaniam the Master of
Ceremony making sure everything is in order and
observed by Mrs Jenny Chow.
Invited guest include cabinet Ministers, Diplomatic Corps, Business Houses and other
representatives.
Sir Michael Somare operates the excavator to conduct
the official ground breaking while NCDC Governor
Powes Parkop and Finance & Treasury Minister Hon,
Patrick Pruaitch looks on.
Far right - Sir Michael Somare having a
chat with the board chairman of CRCC
Xue Zhi Gui (second from left).
Right - The physical Ground Breaking
ceremony by Prime Minister Sir Michael
Somare.
4
whether times were good
or bad”. Sir Michael expressed appreciation saying
the Company’s decision
to diversify its investment
was a clear expression of
vision to remain a long term
partner for the Government
and the people of PNG,
in endeavour to build the
Nation.
‘A genuine partner in PNG’s nation building process’
Global warming and Globalisation
ally via fossil fuel burning
transportation (land, air and
water).
* By its business-biased,
closed –door trade tribunals. To date trade rulings
have, by and large, sided
with business interests over
concerns for the environment.
It is evident that the world’s
poorer nations have borne
most of the damages which
are already beginning to
see natural disasters, El
Nino etc and can not defend themselves or adapt
to changes.
Global warming is the
greatest challenge of our
time. Fortunately, there are
solutions that can tackle
global warming, boost the
economy, create millions of
quality jobs and move the
country towards a cleaner
and more energy efficient
future.
Globalisation and the patterns of production, consumption, and development
it encourages has been a
major driver behind global
warming.
This trade model has promoted the production and
consumption of goods regardless of their impact on
our environment, excessive
and wasteful shipping of
goods globally, depletion of
natural resources at a breakneck pace, and trumped any
environmental or labour
policies that dare stand in
the way of ‘progress’ In
particular, this system of
global trade is dependent
on the burning of fossil fuel
Industrial Chimney - (freefoto.com)
to feed it vast and rapidly
increasing energy demand.
In addition, specific trade
rules can inhibit the greening of the world’s economy and implementation of
smart energy policies. Free
trade has most significantly
contributed to global warming in the following ways.
* By promoting a ‘race to
the bottom’ mentality where
businesses are encouraged
to relocate to countries
with weak or non-existent
environmental and labour
laws.
* By creating unsustainable consumption patterns
and an onslaught of, cheap,
products that do not reflect
their real cost in terms of
their environment or social
impact.
* By enabling rapid deforestation, natural resource
depletion, and land conversion for industry, industrial
agriculture, transportation
and commerce.
* By sharply increasing
the volumes and distances
of goods shipped glob-
Climate change is the greatest challenge as well as
the greatest opportunity
we face globally. A well
designed climate change
policy could mean hundred of thousands of good,
family supporting jobs, a
more stable economy, less
dependency on foreign oil
and healthier planet.
However, it can only be
accomplished if the current globalisation model is
turned around and stake out
a new course.
Trade done right can promote a sustainable economy
and create jobs, while protecting communities, workers and environment.
A new vision must be developed for trade that is
clean green and fair and by
doing so we can find ways
to avoid catastrophic climate change and move towards a more just, equitable
and sustainable world.
BAHA receives K200,000 from RH
The Business Coalition
against HIV/AIDS (BAHA)
received a cheque for K200,
000 from the Rimbunan Hijau (PNG) Group in May.
This was to honour its commitment to them as platinum
sponsor for three years, last
year it also donated the
same amount.
The commitment by the
company is in line with its
corporate social and responsibility in the community.
This is also to support the
company’s commitment to
tackle the spread of HIV/
AIDS in Papua New Guinea. In 2005, the RH Group
launched its in house HIV/
AIDS awareness campaign
with the support from The
National AIDS Council’s
Private Sector response
programme.
The awareness was carried
‘A genuine partner in PNG’s nation building process’
in all its logging camps
around the country and its
other operations in Port
Moresby for its national and
expatriate staff members.
Rimbunan Hijau was one of
the first platinum sponsors
and was invited to become a
board member of BAHA.
5
RH Eyes Fish-Farming in PNG
Fish farming on large scale, can benefit Papua New Guinea
in the long term if this food production concept is fully
embraced.
It has the potential to open a whole new industry in the
country. There is currently inland fish farming done and
to an extent, open caged fish farming in PNG, but can fish
farms be developed on a larger scale.
is also high demand for salmon because of the many health
benefits it provides to the consumer, and the demand for
salmon in future is expected to increase as it has high
protein content as well as having rich Omega – 3 fatty
acids content.
PNG has the right climate and conditions to farm certain
fish species both for local consumption and export on a
larger scale, and Rimbunan Hijau Group in PNG is considering the possibility.
There are number of fish species on the list for consideration for the company to commercially farm, and indications are that barramundi is high on the list. Bismarck
Barramundi Pty. Ltd in Madang is already farming barramundi and with success. The company which is owned
by the Middleton family started the project in 200o and is
now harvesting 200,000 table-size fish each year. It breeds
its own fingerlings, rears, harvests, and processes and then
markets the fish.
For RH PNG, it does not have to look far to draw the skills
and experience and the technological know-how to develop
large scale fish farming in the country. It can tap the successful experience of the RH Group in New Zealand. The
Group’s subsidiary, King Salmon Co Ltd is an industry
leader in farming the highly prized king salmon in New
Zealand mainly for export.
The company employs 400 people and is generating NZ$75
million a year from the 6000metric tones of salmon it produces. It accounts for about 70% of the Salmon produced
in New Zealand each year.
King Salmon Co, vertically integrated, produces its own
fingerlings, then transfers them to open sea caged farms and
then rears them to mature sizeable king salmons, processes
them a d distributes them to buyers around the world. The
company does its own marketing, which is part is part of
the vertically integrated processes involved from rearing
to distribution of king salmon.
It currently supplies 55% of world’s demand for king
salmon. It exports 21% of its processed king salmon to
Japan, 15% to Australia and the rest to buyers in South
East Asia and United States. The company also boasts an
innovative and sustainable operation in farming pure king
salmon or the Chinook brood in chemical-free clean growing environment, promising freshness from its farms right
to the market, and providing product traceability through
all the processes.
It also owns and runs a research breeding facility and two
hatcheries for smelt rearing that sustains its five sea cage
farms and four purposes built processing facilities. There
Floating Fish Farm in Singapore. Aquanic.org
In PNG, barramundi may be a more suitable species for
large scale farming. The fish is also reputed to have high
Omega-3 fatty acids.
Research has shown that about 200gm of fish contains a
person’s daily requirements for Omega-3, which when
taken regularly has the benefit of reducing a person’s
change of developing various diseases, including heart
diseases and cancers and disorder, helps reduces weight,
promote barin development, amongst others.
Some studies have also shown that children who have regular fish diets have a less likely chance of getting asthma.
For PNG, the benefits are going to be immense for the
country if barramundi farm project is undertaken by RH.
This include employment creation, regular production with
constant Revenue to the investor and foreign exchange to
the country from barramundi export receipts, less impact
on the environment if well undertaken, puts less pressure
on open fishing, freshness to the market through product
traceability, and for the local population, a good healthy
source of high quality protein.
But for such a project, the decision whether to have open
sea-caged farms, with the farm’s cages firmly pinned to
seabed, or in-land farms in large tanks with water salinity
and temperature is regulated, r other options available, is
left with the investor.
The decision depends on studies to outline benefits and
costs, including environmental impact and regulatory and
other requirements, before an investor makes an investment decision.
Tuesday, June 24, 2008 – Picture courtesy by The National Newspaper
6
‘A genuine partner in PNG’s nation building process’
Group supports Children Aids Awareness Program
crime and drug abuse.
The school kids from the
neighboring Hohola Primary schools took part in
the three days event during
their first term holiday.
Children showing posters of the human internal system
during the awareness program.
Rimbunan Hijau Group has
assisted the Chariots Basketball Club of Port Moresby through its basketball
awareness programme. RH
contributed goods and soft
drinks worth over a thousand kina.
The major sponsor of the
event was the Australian
Sports Outreach Programme
(ASOP) which gave K5000
to fund the whole programme that featured an
awareness clinic to educate
the children on HIV/AIDS,
The Australian High Commissioner Chris Moraitis
was present to give certificates to the participants.
The President of the Chariot
Basketball Club Mr.
John Bruce during his
speech said, “our main focus is the awareness clinic
in which they were made
aware of HIV/AIDS, law
and order, drug and child
abuse”.
RH, NCC supported canoe festival
The Rimbunan Hijau (PNG)
Group of companies and the
National Cultural Commission (NCC) have jointly donated K15, 000 organising
committe of the Gogodala
Canoe festival that was held
in Balimo from April 21 to
26 this year.
The NCC is promoting
and developing cultural
festivals that are unique to
the different regions of the
country.
During the presentation of
the K10,000 cheque, the
Group’s Public Relations
Officer Mathew Werigi
said,” the group has been
supportive over the years
since the festival started
almost five years ago and
decided to invest this year
by assisting NCC in maintaining and carrying out its
duty to promote the unique
and different cultures of the
country”.
For nine years, the NC has
been registering cultural
groups from all over PNG
and among its many func-
tions, is the staging of the
Gogodala canoe festival.
The executive director of
NCC Dr. Jacob Simet said
these events are supposed to
be provincial initiatives but
they want support events
at the local level so we
decided to assist.
“We have to be mindful of
our unique cultures as there
are certain things in society
that you cannot do without,
and so to lose a culture like
this would be tremoundous
blow,” Dr Simet said.
One of the winning canoes
for the 2007 Gogodala
Canoe Festival.
‘A genuine partner in PNG’s nation building process’
Health Corner....
Heart Attack
What Causes Heart Attack? Heart Attack is
caused when an atery that
supplies blood to the heart
muscle gets blocked.
The blockage is caused by
the formation of a material called plaque in the
inner walls of the coronary atery. Eventually the
section of the plaque can
break open causing blood
clot to form on the site.
Heart Attack occurs if
the clot becomes large
enough to cut off most or
all of the blood that flows
through the atery to the
heart muscle.
Prevention – Healthy
lifestyle choices to help
prevent heart attack includes:
* Following a low-fat
diet rich in fruits and vegetables. Pay careful attention to the amounts and
types of fat in your diet.
Lower salt intake. These
changes help lower higher
blood pressure and high
blood cholesterol.
* Loosing weight if you’re
over weight or obese.
* Quitting smoke
* Doing physical activity
to improve heart fitness.
Ask your doctor how
much and what kind of
physical activity are safe
for you.
Who is at risk? Major
risk factors for Heart Attack that you can control
include:
* Smoking
* High Blood Pressure
* High Blood Cholesterol
* Overweight and Obese
* Physical Inactivity
* Diabetes ( high blood
sugar)
7
NUS GAMES GETS SUPPORT
Differences
Between You
and Your Boss
* When you take a
long time, you’re
slow.
When your boss takes
a long time, he’s
thorough.
* When you don’t do
it, you’re lazy.
When your boss
doesn’t do it, he’s too
busy.
UPNG SRC Vice president late Michael Tekwie receiveing the cheque from Christine representing RH.
* When you’re out
of the office, you’re
wandering around.
When your boss is out
of the office, he’s on
business.
The National Union of Students received K2000 from
RH in May for the games
which was played from the
22nd to 29th June in the
University of Papua New
Guinea (UPNG) campus.
* When you apply for
leave, you must be going for an interview.
When your boss
applies for leave, it’s
because he’s overworked.
* When you’re on a
day off sick, you’re
always sick.
When your boss has a
day off sick, he must
be very ill.
* When you take a
stand, you’re being
pig-headed.
When your boss does
it, he’s being firm.
Rimbunan Hijau PNG
Group assisted them as
part of its community responsibilities in supporting
sports and other community
and health activities.
However, the planning and
preparation was marred
with the sudden passing
away of the UPNG SRC
Vice President. The Late
Michael Tekwie was the interim caretaker and actively
involved in the preparation
of the games.
He passed away after in
the afternoon of May 20th
after he was presented the
cheque at RH in the morning and most of us here
were shocked.
Under the theme ‘Foster
Unity through Sports’, all
major universities in the
country as well institutions
and colleges in Lae and Port
Moresby took part.
A team of twenty from
Monash University of Melbourne Australia also took
part in basket ball and other
sporting codes.
8th MBC Golf Challenge Donates to Charity
The Malaysian Business
Council (MBC) has again
come to the aid in donating
K300,000 towards charity
organisations in Port Moresby through its 8th Golf
event last month.
Chairman of the Organising
Committee Mr Ivan Lu said
the amount raised this year
has broken last years record
of K286, 200.
With 47 teams participating in this years event it
has been a great success.
Monies were raised from
raffle ticket sales, team
registration, cash donations
and kind and Auctioning of
19 items.
Eleven charity organisations received donations
with Port Moresby General
Hospital receiving the highest amount of K125,000
followed by the annual
Operation Open Heart Program with K30,000.
Other organisations include
City Mission, Sir Buri Kidu
Heart Foundation, Cheshire
Homes, Hope (PNG) Cannosa School of Life, Missionaries of Charity, Caritas Technical Secondary
School, Eda Mauri and the
Nine Mile Clinic.
The MBC Over 123 corporates and individuals
contributed in one way or
the other to make the event
a success and the MBC is
looking forward to a more
successful event next year.
“There is no limit to what you can imagine, and with commitment, with effort, what you imagine you can become.”
-anonymous-
We welcome your suggestions and contributions to improve our future publications, send them to:
Public Relations Dept,
RH (PNG) Group
P.O Box 102
Port Moresby
National Capital District
Telephone:
Facsimile:
325 7677
325 6165
www. rhpng.com.pg
Email:
pr_dept@rhpng.com.pg
annette_pr@rhpng.com.pg
werigi_pr@rhpng.com.pg
‘A genuine partner in PNG’s nation building process’