wrmcast.gif (3121 bytes)


 

Congo, Republic: Thousands of hectares of land for eucalyptus, oil palm and mining

 

Between 1991 and 2001, Shell Renewables -a division of Shell Oil International- implemented a forestry operation based on the planting and harvesting of fast-growing cloned eucalyptus trees (see WRM Bulletin 46), with the aim of establishing a high-yield source of biomass for future energy generation.

 

Later on, Shell sold its plantations. Very recently MagForestry -the forestry division of MagIndustries, a Canadian company involved in industrial and energy projects in Central-Africa (most notably the Republic of Congo and the Democratic Republic of Congo)- took over control of the former Shell’s 68,000 hectare eucalyptus plantation through the acquisition of all the shares of Eucalyptus Fibre Congo S.A. (EFC), the lessee of the industrial plantation.

 

EFC currently holds an exclusive 50 year forestry concession agreement with the Government of the Republic of Congo, which is renewable by EFC for an additional 21 years. This enables MagForestry to appropriate thousands of hectares of land to carry out not only a forestry activity that produces very few jobs, but also to secure long term land rights for its mining branches: MagMining's brine well mining field, MagMinerals' potash plant and MagMetals' magnesium smelter.

 

The eucalyptus plantations lay near the Congo’s Atlantic port city of Pointe-Noire, from where MagForestry can send its shipments to the seaports of Antwerp in Belgium and Rotterdam in the Netherlands, ready to be distributed all over Europe or to be re-exported to anywhere in the world.

 

Another budding business adds to the package. The biomass fuel boom prompted MagForestry to begin the construction of a 500,000 tonne per year wood chipping plant on those lands, aiming at becoming a major supplier for the rapidly growing global biomass market.

 

At the same time, the Spanish company Aurantia is investing in a cluster of palm plantations in the Republic of Congo with the aim of producing biodiesel from the oil. Feasibility studies are already underway to analyse the different plantation and mill sites, and to assess the state of the existing logistical infrastructure in the country.

 

The actual size of the investment has not been disclosed and the company did not offer any insights into how it sees itself within the context of sustainability and of the fragility of Congo's environment, neither into how it would guarantee its palm oil is produced in an environmentally friendly manner.

 

Meanwhile, dangerous outcomes from a study commissioned by the EU and carried out by the CIRAD, announce that Congo “has around 12 million hectares of land suitable for the establishment of woody energy crop plantations (such as eucalyptus and acacia)”. This may entail that private groups take over those 12 million hectares of land to carry out their business.

 

Big business in the Congo’s lands… for big companies.

 

Article based on: “500,000 tonne mill for energy wood chips in the Republic of Congo”, Biopact, http://biopact.com/2006/11/500000-tonne-mill-for-energy-wood.html; “Une société espagnole veut investir dans l'exploitation de l'huile de palme au Congo”, Congoplus.info, http://www.congoplus.info/tout_larticle.php?id_article=2269; “Spanish company Aurantia to invest in Congo's palm oil sector for biodiesel”, Biopact, http://biopact.com/2007/03/spanish-company-aurantia-to-invest-in.html

 


Go to home page - Recommend this page

World Rainforest Movement

Maldonado 1858 - 11200 Montevideo - Uruguay
tel:  598 2 413 2989 / fax: 598 2 410 0985
wrm@wrm.org.uy