Saban first to get legal certification - Rimbunan Hijau (PNG)

Published by
Public Relations
Department
Patron
James Lau
Editor
J.K.Balasubramaniam
Sub-Editor
Mathew Werigi
Annette Obed
Layout and Design
Annette Obed
In
this
Issue...
Pg 2
World Financial
Affects
Timber Exportports.
Pg 3
Alan Oxley’s
Commentary-
“Climate
Change”
Pg 4
PX introduces
KL
Inaugural
flight.
RH GROUP NEWSLETTER
Issue: 12 July - December, 2008
A quarterly publication produced and published by the Rimbunan Hijau Group of Companies.
Saban first to get legal certification
Saban Enterprises Limited
(SEL) a subsidiary of Rimbunan
Hijau (PNG) Group
has become a first forestry
company in Papua New
Guinea to receive certification
on the legality of the
timber it exports has been
independently verified. It
is a timber processing entity
in Milne Bay Province. The
certificate was presented to
Rimbunan Hijau by Bruce
Telfer, representative of
SGS in Papua New Guinea.
It has been issued with:
• A Legality Statement for
its forest operations; verifying
that the supply of logs to
the mill yard have met SGS
TLTV legal criteria,
• A Chain of custody Statement
for their sawmill;
verifying that the mill production
process is secure
from unverified sources
of wood and that all sawn
wood products sold can be
regarded as Legally verified.
Societe Generale de Surveillance
(SGS) has developed
a Timber Legality & Traceability
(TLTV) Verification
programme responding to
the needs of both producers
and consumers of timber
to provide for independent
verification that timber is
produced in compliance to
relevant PNG laws.
When announcing that SEL
was the first forestry company
in PNG to receive the
certification, Mr. James
Lau Managing Director of
Rimbunan Hijau said, “RH
initiated the development
of this standard” and also
thanked International Tropical
Timber Organisation
(ITTO) for partly funding
its development.
“The next step for us is
to develop chain custody
procedures which could be
used by a variety of forestry
and timber processors in
PNG. “This would give the
buyers credible assurance
that the timber has come
from a legal and verified
source,” said Mr. Lau.
He also said that RH was
currently working with FIA
to achieve that.
He further mentioned that
‘A genuine partner in PNG’s nation building process’
The Managing Director,
Mr. James Lau presenting
the Certificate of Verification
to National Forest
Authority Managing
Director Mr Kanawi
Pouru.
the forest industry had been
unfairly attacked by those
opposing commercial forestry
in the country. “The
claims that most forestry
in PNG and most of RH’s
activities are illegal are
totally untrue. “RH can
easily demonstrate that its
logging is legal. We look
forward to applying the
SGS TLTV to our other
forestry operations,”said
Mr. Lau.
“Purchasers both locally
and overseas are entitled
to confirmation that the
timber is legal if required.
“RH will apply these systems
to its exports as they
are developed. “Forestry
is an important industry
for PNG. It creates jobs,
taxes, royalties and exports.
It is very important that
PNG’s special forest biodiversity
be protected and
preserved.”
He said Rimbunan Hijau
was committed to undertaking
forestry in a way
that fully complied with
PNG laws and policies and
preserve the environmental
heritage.

TIMBER EXPORTS AFFECTED BY GLOBAL FINANCIAL CRISIS
The global financial crisis is unprecedented even ordinary
citizens don’t understand what is playing out these days on
the international financial market. Even the bankers and
financiers are finding themselves in a state of shock.
The collapse which began in July with the US mortgage
crisis and in the following month led into an international
credit crunch is proceeding inexorably and encompassing
all sections of the financial and economic system. Around
the world stock markets have collapsed or been bought
out, and governments in even wealthiest nations have had
to come up with rescue package to bail out their financial
systems. This has already affected the livelihoods if almost
everyone in an increasingly inter-connected world.
As a consequence of the global financial melt down, major
mining companies in Australia like Xstra, Oz minerals have
began laying of more than 500 workers and Rio Tinto mentioned
to cut 15,000 jobs world wide. Even richest Arabs
are getting poorer, the Saudis Prince Alwaleed bin Tala one
of the richest billionaires’ investments shivered nearly 20
percent, and governments of the oil rich Gulf countries say
the crisis knocked down nearly 350 billion dollars from
the capitalization of their markets this year.
Papua New Guinea is no exception; since the world is
inter-connected we have our own experiences related to
the current global crisis.
This has triggered the increase of prices of basic goods
like rice and tinned fish and even prices for garden food
at the local markets have doubled or tripled. Inflationary
pressure remain large as the world oil price is still at a
high level which we have experienced a sharp increase
in fuel prices.
Overall, the tropical timber trade slumped due to weak
global economic conditions and low demand ahead of the
Christmas and New Year’s holiday.
As exporters searched to boost exports in 2009, Malaysian
2
Highlights of the TLTV
Programme Certificate
Presentation to
Saban Enterprise, a
subsidiary of Rimbunan
Hijau Group of
Companies.
The ceremony was attended
by members
of the Forest Authority,
representatives of
the New Zealand and
Australian High Commissions.
‘A genuine partner in PNG’s nation building process’
traders were hopeful that markets in the Middle East, such
as those in Saudi Arabia, and more positive production
trends in China would boost demand for their products. The
global crises have forced the demand for timber to be sluggish
like in Congo and other timber producing nations.
In Papua New Guinea, the demand for timber decreased
compared to last year because:
> Delay in start up of new projects, 2 and possibly 3 large
FMA projects were the target.
> Rising costs, especially fuel, and supply delays for equipment
and parts, building materials are having impacts.
It has been predicted that the condition will worsen and
continue till next year, the slow down in export markets
as buyers become more cautious and also as building and
construction sectors slow down in our markets in Australia
and New Zealand. Given the current uncertainties there is
more downside risks than positive trends emerging.
An aerial view of the City of Port Moresby, capital of
Papua New Guinea.

An Unlikely Solution For Climate Change
Building forests offsets emissions without hurting industry.
http://www.forbes.com/2008/12/22/climate-change-forest-oped-cx_ao_1222oxley
Tucked away in a voluminous assessment released last year
by the United Nation’s Intergovernmental Panel on Climate
Change (IPCC), there’s an incredibly cost-effective way
to reduce greenhouse gas emissions.
It’s in the chapter on forestry.
Given the global economic crisis, the cost of “going green”
is—not surprisingly—becoming an increasingly prominent
factor as international regulators consider drafting environmental
policies. This shift in priorities was evident in
the latest round of U.N. climate talks, which ended last
Friday in Poland.
After two weeks of negotiation, it looked as if participants
were no closer to consensus on the terms of the treaty
that will replace the expiring Kyoto Protocol, the 1992
agreement that requires most developed nations to reduce
their carbon emissions. Issues of cost are one of the main
reasons for this stalemate on emissions caps. One solution?
Build new forests.
The IPCC report notes that if governments worked to
exploit the natural capacity of forests to absorb carbon
dioxide—and deliberately aimed to increase that sink—as
much as 40 to 50% of human carbon emissions could be
offset. That’s remarkable. But even more astounding is
the fact that this extraordinary possibility has been largely
ignored.
Instead, the Worldwide Fund for Nature (WWF), Greenpeace
and the European Commission have sought to join
their long-standing campaign to halt commercial forestry
worldwide with any new global contract to halt emissions.
These organizations argue that, if developing countries
in tropical regions cease harvesting natural forests for
lumber and other resources, emissions will be reduced by
around 20%.
But this result is less than ideal. As the IPCC report
shows, the alternative—to actively build forests worldwide—would
more than double that rate of absorption
and do so at lower cost.
According to the Food and Agricultural Organization
(FAO), most forest land in these countries is cleared to free
up land for agricultural production, create living space or to
Alan Oxley is chairman of World Growth
International, a U.S.-based free market nongovernmental
organization, and the author of a
new report on how forestry can combat climate
change while bolstering the economy.
‘A genuine partner in PNG’s nation building process’
obtain wood for fuel. By imposing blanket restrictions on
deforestation, Western groups like WWF and Greenpeace
are sentencing developing nations to a drop in their food
supplies as well as stunted economic development.
This kind of collateral damage exposes one of the subtle
downsides of the Kyoto Protocol. As the WWF noted in
a recent report, green activists don’t embrace strategies
like forestry regrowth, which expand carbon offsets. Even
though this kind of initiative often offers the best benefits
for both the environment and the economy, environmental
groups are often reluctant to consider them because they
ease the pressure on business and industry to reduce emissions
by other means—like switching away from fossil
fuels as a source of energy.
In other words, green activists aren’t motivated purely
to reduce emissions; they’re also angling to close down
traditional energy industries. And if the poor get hurt in the
process, it would seem the end justifies the means.
But the economic crisis changed all that and rendered these
ulterior political motives unrealistic. Now it’s not just the
economic well-being of people in developing nations that’s
at risk from anti-industry climate policies.
Apprehension is also growing among Italians and Germans.
Their leaders worry that local companies will not
be able to bear the heavy costs of the low emission targets
the European Union plans to set in a new agreement. Pressure
from German business and unions has forced German
Chancellor Angela Merkel, one of the architects of the
Kyoto Protocol, to put her country’s economic interest
ahead of green ideals.
With businesses and families alike facing a shortage of
cash, it’s time to consider expanding carbon offsets. That
means seriously considering the significant role sustainable
forestry stands to play in the fight against climate
change.
In the words of President-elect Barack Obama, “The
time for change has come.” And when it comes to global
negotiations on climate change, that change will mean
measuring the effectiveness of green initiatives by their
benefit to both the environment and the economy.
3

SECURITY OFFICER
AWARDED BRAVERY
CERTIFICATE
Kini Vere one of our Senior
Security Officers
with the Dynasty Security
was awarded a Bravery
Certificate in recognition
for his bravery to save his
colleagues.
In the early hours of 14
November 2008, three
armed men entered our
office premises and pointed
a gun at him, he had
no choice but to jump
over razor wired fence
in order to raise an alarm
to the police or public.
In the process he landed
on the concrete wall and
injured his right foot. The
three culprits also jumped
over the fence, followed
him and fought with him.
Luckily other securities
from other nearby premises
came to his assistance
and the men fled.
He is currently on sick
leave and will resume
after his foot is well. He
has also received praise,
in the process he saved
other security guards as
the men concentrated on
him instead of attacking
others.
Kini with his injured
foot.
PX Starts KL Flight
Pictured above is Air Niugini Chairman speaking at the
background with Mr James Lau and Moniusha one of
the youngest passengers to board the first direct flight to
Kuala Lumpur.
The National flag carrier, Air Niugini has launched its
direct flight to Kuala Lumpur Malaysia on the 29th of
October 2008. That was Air Niugini’s 10th international
destination apart from Cairns, Brisbane, Sydney, Singapore,
Hong Kong, Manila, Narita, Honiara and Nadi.
According to the Air Niugini board Chairman Sir James
Tjoeng the non-stop KL flight will address the demand for
huge Malaysian business presence in Papua New Guinea.
The Port Moresby – Kuala Lumpur (PX 394) service departs
Port Moresby every Wednesdays at 3pm and arrives
at Kuala Lumpur at 7:10pm local time. The return flight
(PX 395) departs Kuala Lumpur at 8:10pm and arrives in
Port Moresby at 4:20am on Thursdays.
For Malaysians, this service will greatly ease the burden
of transiting from Singapore like before, especially during
early hours of the morning. Sir James Tjoeng and
Air Niugini Chief Executive Officer Wasantha Kumrasiri
including Mr. James Lau Managing Director of Rimbunan
Hijau joined the invited guests on the board the inaugural
flight to Malaysia.
2008 December 01st-Wear Red Day
Group welcomes
new Legal
Officer
New to our Legal Department
is Samuel Clayton Olewale
from Kunini Village of
Daru in the Western Province,
who joined the Group
on the 14th of October 2008
as a Legal Officer.
Having started two months
ago, he found the working
environment welcoming
and influential, giving him
a sense of commitment and
loyalty, especially with the
Legal section.
Samuel’s interest in working
with Rimbunan Hijau developed
due to the company’s
diversification, its vastness
and major developmental
impacts in rural areas. He
also wants to be part of a
team in a company that is
consistently expanding.
Prior to working with us, he
worked for Dirua Lawyers,
Public Prosecotor’s Office,
Mambei Lawyers and David
Consultants.
He said he was very privileged
to be with our legal
team and the entire work
force here at the head office
and look forward in the
years to come.
We welcome your suggestions and contributions to improve our future publications, send them to:
Public Relations Dept,
Telephone: 325 7677 Email:
RH (PNG) Group
Facsimile: 325 6165 pr_dept@rhpng.com.pg
P.O Box 102
annette_pr@rhpng.com.pg
Port Moresby
werigi_pr@rhpng.com.pg
National Capital District www. rhpng.com.pg
‘A genuine partner in PNG’s nation building process’