Stabroek Business has learnt that the Guyana Forestry Commission is in discussions with the Chinese-owned Demerara Timbers Ltd for the renewal of two timber harvesting leases covering close to 400,000 hectares of forested area and initially granted to the company in June and October 1991, respectively. The June 1991 lease covers an area of 221,772 hectares while the October 1991 lease covers an area of 184,585 hectares.
However, the GFC has said that its figures indicate that DTL is currently operating at less than 40 per cent of its harvesting capacity, a circumstance that has caused the state agency to request that the company prepare a comprehensive business plan to justify its application for renewal of the leases.
DTL’s harvesting figures for the area for years 2009-2015 for the area leased in June 1991 indicate that the company harvested a total of 43,249.59 cubic metres of timber or 37% of its harvesting capacity over the seven-year period. In the case of the area leased to DTL in October 1991 the company harvested 127,558.99 cubic metres, of timber, 38% of its harvesting capacity.
Stabroek Business has learnt that the plan which DTL is required to submit is expected to provide information on its projected annual harvesting, inventory of equipment and machinery for the building of roads and bridges and for harvesting, details of human resources human resources necessary to undertake those works, where these are expected to be sourced and plans for training of staff.
DTL’s business plan is also expected to include details of staffing as well as its management and marketing structures, the financial resources needed to accomplish the goals set out in the business plan and the company’s plans for adding value to the harvested timber. The company has been given up to February 29 to submit the plan.
Earlier this week the Ministry of Natural Resources issued a statement that GFC officers had verified that a major safety issue involving a sawmill operator operating a level system without adequate safety provision which had come to light during a visit to the company’s operations by the then minister in the Ministry of Social Protection Simona Broomes on December 10, 2015 had been rectified.
In the wake of the disclosure regarding the safety infringement DTL was ordered to close its operations and a few days later, in accordance with an agreement with the union representing the workers, the Guyana Agricultural & General Workers Union (GAWU) the sawmill staff were sent home on 50% pay. This newspaper understands that DTL has written to the Ministry of Social Protection requesting that it be allowed to re-start operations at the sawmill and the 45 workers involved are reportedly awaiting instructions to return to work.
