Lae, New Guinea

Bod Has Everyth

Under Control

The New Peeling Mill at Lae, New Guinea

ON the ownership side, South Pacific Timbers —whose large veneer mill at Voco Point, Lae, was officially opened in July— requires some explanation. [ It is apparently operated by, and in close conjunction with Common wealth New Guinea Timbers Ltd. (the manager, Mr. R. P. J, Weedon, has come from the Bulolo Establishment), but it actually is jwned by Bulolo Gold Dredging Ltd., which is one of the partners in the huge CNGT concern.

It appears that the financial Structure of CNGT (Commonwealth government and BGD) was rather jarefully arranged a couple of pears ago; and the introduction of lew capital when South Pacific dumber Ltd, was purchased recently 'or CNGT would have caused some leadaches. So it has been simply id justed: BGD Ltd. is the owner, ind the thing is operated under ome agreement between BGD Ltd. ind CNGT Ltd.

The new establishment spreads iver several acres at Voco Point, rhe sawmills already were there, ind the new owners have put in it least £lOO,OOO worth of “peeling” dant, in another new building learby, where the veneer is pro luced. It is, in some degree, a luplicate of the plant at Bulolo, fhere the pine logs are trimmed o size, and peeled.

BUT there is one great difference.

The Bulolo logs are practically all pine—a few cedar and other high-class high-country stuff go through. But no less than eight different timbers from the Busu forests—Anisoptera, Celtis, Ambroi, Amoora, Numa, Erima, Kapok and Kapiok—are going through the Lae veneer mill—stuff that, before the war, was regarded by old timber-men with contempt, as “jungle rubbish”. It is all in keen demand.

South Pacific Timbers will sell in Lae, along with its sawn timbers, all the veneer that is wanted; and what is not wanted will provide back-loading to the Bulolo plymill, where they now cannot always get enough veneers from their incoming pines to keep the plywood division in full operation.

The “jungle rubbish”, converted to plywood, and treated, discloses quality and finish that rather stagger the old hands.

South Pacific Timbers employ 14 Europeans and 185 natives (in cluding the bush crews). Of these, 7 Europeans and 50 natives are in the veneer mill.

It is an important development for Lae which, economically, has had too much exchange and mart, and not enough industrial pro duction. rpHIS Trans-Busu timber industry JL has grown rapidly since the Melbournites, Messrs. Murdoch and Murphy, picked up the timber lease that C. Paterson abandoned, some four years ago, and answered the critics (who said the torrential rivers would defeat them) by throwing across the Busu a log bridge which still stands firm.

Murdoch and Murphy brought out the logs in ever-growing numbers, found a healthy market South for

lumber, and a healthy local market for the products of their Voco Point sawmills, and formed South Pacific Lumber Ltd. three years ago. They sold out to the present owners early 1957; and now all the operations are under the one official roof, and efficiently controlled and co-ordinated.

Maybe the old hands are right when they insist that there is “too much blasted Government” in the set-up. But the Government is seen only in part ownership.

Everything else is in the skilled and confident hands of the Placer-BGD people—who seem to know exactly where they are going, and why.

A. E. Gazzard, general manager of BGD, opening the Lae mill.