Monday, June 6, 2011

Priceworth unit inks agreements for logging in Solomon Islands

KUALA LUMPUR: Priceworth International Bhd has signed two agreements to carry logging activities in the Solomon Islands.

In a filing Monday, June 6, Priceworth said its wholly owned unit PWP (SI) Ltd had entered into two management and TECHNOLOGY [] agreements with DP Development Ltd to carry out the logging activities on two concession areas.

It said PWP was appointed as the operator to carry out the logging operations on the concession areas with a combined land size of 8,346 hectares, and that PWP would jointly market the logs witj DP Development.

Priceworth said PWP would receive 57% of the export/sale proceeds as the cost of production of logs.

It said the appointment as operator was valid for a period of five years for each of the two concession areas, with one parcel expiring on Aug 31, 2015 and the other on March 21, 2016.

On the rationale for the agreements, Priceworth said the involvement of PWP as operator for the concession areas would provide it with continuous source of supply of logs for consumption of its plywood mill and sawmill

It said PWP would finance its operations via internally generated funds, adding that the project was expected to enhance its future earnings.

'The concession areas are estimated to have a combined log volume of approximately 309,716m3 which can be processed into sawn timber, plywood and downstream wood products.

'The logs will be partly utilised for the group's internal consumption and for export purpose,' said Priceworth.



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