In the second quarter of the year the Obtala group concluded the acquisition of 10.5 hectares of land for construction of a new sawmill in Nampula, northern Mozambique, which has already begun, according to the group’s quarterly business update report.
The report said the group still has an option to buy another 4.5 hectares and added that construction work had already begun. This new unit is expected to produce 100 cubic metres of processed wood per day.
The tree-cutting season has already begun in Mozambique, with the group anticipating an increase in productivity with the arrival of new equipment in the country and following the option of new processes, and approved management plans covering an area of 135,500 hectares, which translates into the authorised cut of 41,000 cubic metres of wood.
The group said in the document that it agrees with the new rules approved by the Mozambican government to stop illegal logging and to favour companies that comply with the rules in force and process timber in the country, thus adding value.
The most notable event in the second quarter was the acquisition through the Argento subsidiary of Woodbois International, which has a forest concession in Gabon with an area of 96,800 hectares and a sawmill with a processing capacity of 42,000 cubic metre per year.
Paul Dolan, chief executive of the Guernsey-based group, said in the document that the acquisition of Woodbois International will allow synergies with forestry operations in Mozambique. (macauhub)