N. Guinea’S New
p. 124 · Read in the full issue
Timber Co.
Australia and Bulolo Gold In Partnership
AFTER long negotiations—the plan was first advanced under the Ward-Murray regime, three or four years ago—Commonwealth New Guinea Timbers, Ltd. has been: formed by the Australian Govern ment, and Bulolo Gold Dredging Ltd., with a nominal capital of millions, to work the large stands of hoop and klinki pine, in the ranges around the Bulolo River, in the Morobe district of New Guinea.
The Morobe goldfield is being worked' out. It is hoped to replace the gold industry with a large tim ber industry, supplying veneer woods and high-class timbers. There are 500,000,000 feet of pine in the region under notice. It is proposed' to cut this at the rate of 10,000,000-feet per annum; replanting is to go-' hand in hand with cutting; so that,, when the first cutting is completed* 50 years hence, new forests will bet ready for the saw.
The Commonwealth will hold! 500,001 £.l shares and Buloloi 499,999 in a proposed issued capi tal of £1,000,000.
Further capital issues will be at: par, but it is not expected that: issued . capital will exceed! £1,500,000.
The first permit is for 100,000,000 board feet of hoop and klinki pine at an average rate of] 10,000,000 feet a year, with author ity to cut certain secondary woods in such quantities as may be de termined by the Administrator.
Royalties to the Administrations will be at the rate of 1/- to 7/a 100 board feet for the first five years, according to the species and class of timber.
The agreement provides for a* renewal of the original permit fori 10 years and permission to cut anr additional 100,000,000 feet of hoop: and klinki pine, plus a quantity oft secondary woods. If the partner ship proves satisfactory, the Com monwealth expects the remaining area of 40,000 acres, containing 300,000,000 super feet of pine,: should be harvested by the timben company.
Bulolo Gold Dredging expects & suitable return on the capital in-i vested. Certain equipment and: facilities will be turned over by* Bulolo to the timber company at a> valuation in part payment of capi-i tal subscriptions.