Loani Forest Clearance: Another Bogus Agriculture Project?
Briefing paper on the Loani Bwanabwana forest clearing project
Logging companies mentioned in this document:
Concessions mentioned in this document:
BRIEFING PAPER LOANI BWANABWANA FOREST CLEARANCE: ANOTHER BOGUS AGRICULTURE PROJECT?
AUTHOR AND CONTACT DETAILS
ACT NOW Limited,
PO Box 5218, Boroko, NCD
Tel: +675 7715 9197
Email: info@actnowpng.org
Date of publication: August 2024
Cover image: Log stack on Sideia island, Milne Bay Province. © David Mitchell
LOANI BWANABWANA FOREST CLEARANCE: 1
ANOTHER BOGUS AGRICULTURE PROJECT?
INTRODUCTION
A new large-scale logging operation began on Sideia island in Milne Bay Province in early 2024 as part of the
Loani Bwanabwana Integrated Agro-Forestry Project
Operated by Malaysian company, Millennium Corporation, the project is promising 36,700 hectares of new
agriculture planting across the islands of Sideia and Basilaki and on the mainland. Promised crops include balsa
trees, cocoa, vanilla and rice. To make way for the agriculture planting, 1.2 million cubic metres of logs will be
harvested over a 10-year period, with 75% destined for export.
But there are serious questions about the authenticity of the agriculture plans and the nature and scale of the
intended logging activities. There are also considerable doubts over whether local people have given their
informed consent to the project and whether mandatory processes and procedures under the Forestry Act
have been correctly followed.
The logging operations have been approved under a controversial type of logging licence called a Forest
Clearing Authority. There are numerous well documented reports of FCA licences being unlawful used to
facilitate large-scale selective logging operations under the guise of bogus agriculture plans.1
A GENUINE AGRICULTURE PROJECT?
An analysis of documents submitted by the Millennium Corporation company in support of its logging licence
application reveals a number of red flags that raise serious concerns.
These red flags include:
- No business plan with the costs and projected returns from the agriculture projects; only for
the logging operation;
- No detailed map showing the proposed locations for the agriculture planting;
- No analysis of the suitability of the soils, terrain and climate for the different crops;
- Planned 16,000 hectares of balsa tress will represents a 10-fold increase in PNG’s total balsa
production, but there is no evaluation of current balsa operations or the market potential;
- Planned 10,000 ha of cocoa despite the crop suitability map showing only 2,700ha of land
moderately suitable for cocoa planting and the other 93% classified as marginal or not
suitable (see map below);
- No details of the location, size, fuel sources and costs for the cocoa fermentaries that will be
required to process the cocoa;
- No bank guarantee letter confirming the company has sufficient funds to finance the
agriculture establishment costs;
- No track record in establishing or managing agriculture projects, only large-scale logging.
IMAGE: According to the FCA application, almost 60% of the island of Basilaki and
almost half the island of Sideia will be planted with balsa and rice.
LOANI BWANABWANA FOREST CLEARANCE: 2
ANOTHER BOGUS AGRICULTURE PROJECT?
None of these deficiencies or anomalies were pointed out to local people by Department of Agriculture
officials despite a public hearing held as part of the compulsory project development process. At that meeting
the DAL representative informed the gathering the project submission was well prepared and presented and
followed due process. None of the obvious flaws were mentioned.
A similarly lax approach is evident in the DAL letter endorsing the Agro-Forestry Project.
The letter states ‘most of the compliance requirements have been fulfilled’ but does not specify which have
not been fulfilled or set out any steps or timetable for remediation.
The letter also refers to an ‘independent biophysical evaluation’ as confirming the moderate to high potential
for commercial cocoa, vanilla and rice cultivation. But this independent evaluation was not included in the FCA
application and is contradicted by the evidence that was included.
IMAGE: The FCA application promises almost 10,000ha of cocoa plantation but discloses only 2,700ha
of the whole project area is moderately suitable with the remaining area marginal or nor suitable.
The approval also refers to other compulsory documentation as having been submitted despite it not being
included as part of the FCA application.
These documents include:
- implementation schedule showing precise areas for land use development and detailed start and
completion dates for all activities;
- details of costs of the agriculture project;
- bank certification that full funding is available
- map showing areas of slope over 30% and other areas unsuitable for agriculture;
- verification of ownership and consent of each resource owning clan;
- details of suitable equipment and manpower and past experience
A LACK OF INFORMED CONSENT?
As well as the obvious deficiencies in the agriculture plans there are strong indications the project may not
have the informed consent of local communities.
The landowner consent and verification forms show only one out of seven clans on Sideia island gave approval
for the project and on Basilaki only 3 out of 12 clans. There are also questions over the level of approval on the
mainland, with missing and duplicate forms in the FCA application. It is also reported logging operations were
due to begin on the mainland at the same time as on Sideia island but have been delayed by landowner
opposition.
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ANOTHER BOGUS AGRICULTURE PROJECT?
PROJECT DOCUMENTS
APPEAR TO SHOW
ONE PERSON SIGNED
ON BEHALF OF
MULTIPLE PEOPLE
Perhaps crucially, it appears the wrong paperwork may have been used to verify the consent of landowning
clans and signatures were not witnessed by the correct official. Rather than using Form 253 to verify consent,
Forms 267 were submitted as part of the FCA application and many are not countersigned by a Village Court
Magistrate or land mediator. In a 2019 decision, the National Court ruled an FCA invalid and void for failure to
comply with the mandatory and ‘critical’ requirement to use Form 253 and ensure the counter signature of the
correct officials.2
Further, while the Department of Agriculture did fulfil its obligation to hold a public hearing for affected
communities to inform them of the agriculture plan and gauge their views, the hearing was held in the
Provincial capital Alotau and not in the project area. The meeting report provides no details of which clans
were represented at the meeting. There were also no Provincial or District officials present at the meeting as
its timing clashed with election duties.
Also of concern is that the FCA application states the logging company will have exclusive rights to 5,000
hectares of the balsa planting. Yet there is no indication that they have secured any long-term tenure rights to
the 50 square kilometres of land this will require.
A recent report from the Milne Bay Public Health Department confirms the concerns over landowner
consultation and approval. The report notes that participants in an environmental health assessment
‘expressed limited awareness of the proposed logging operations and anticipated benefits. There was also
concern about the lack of consultation from logging companies and government stakeholders leading to
uncertainty among communities.
The report also states, that once the health team had explained the potential negative environmental, health
and social impacts of the logging, ‘the majority (72%) disagreed with logging and only 18% agreed.’.
There is also an interesting anomaly in the stated political support for the project. Although the local Member
of Parliament, Hon. Isi Henry Leonard issued a letter on 17 February 2022, stating the project has been
endorsed by the local District Development Authority (which he chairs), the records of the DDA shows
otherwise. The official record of the DDA shows only that the decision was made to ‘accept the policy
submission paper in principal and endorse for further public consultation’.
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ANOTHER BOGUS AGRICULTURE PROJECT?
Finally, the locally registered company, Go Corporation Limited, that has a signed Memorandum of Agreement
with Millennium Corporation for the implementation of the ‘Loani Integrated Agroforestry Project, has been
de-registered by Investment Promotion Authority and therefore has ceased to exist. In its MOA the company
claims to represent the two clans who are landowners over the 32,460 hectares project area on the mainland.
No MOA with landowners on Sideia and Basilaki was filed with the FCA application.
LARGE-SCALE SELECTIVE LOGGING?
Rather than clearing forest for a genuine agriculture project, there is a high-risk Millennium Corporation
intends to carry out a large-scale selective logging operation.
The type of logging licence granted to Millennium Corporation, known as a Forest Clearing Authority, is only
supposed to be used for the clearing of discrete areas of forest for agriculture planting or other land use
changes, however the FCA documentation reveals a number of serious anomalies,
Firstly, the approved five-year logging plan allows the company to log 22,315 hectares of forest, but the
proposed agriculture planting will only cover 17,600ha.
Secondly, the FCA application divides the whole of Sideia and Basilaki islands into five logging coupes. Of a
gross area of 20,000 ha, the Millennium Corporation has rights to log 11,855 ha, or 60% of the total area over
the first five years. In addition, the company has rights to log a further 10,460 ha on the mainland (Loani).
IMAGE: The whole of Sideia and Basilaki islands have been divided up into logging coupes.
This is despite the company’s pledge in its FCA application that it will clear the land for planting in phases of
500ha at a time with the blocks being progressively planted and the boundaries of each block being marked
out prior to clear felling of the trees.
A recent field inspection has found evidence to support the thesis that what is intended is just a large-scale
selective logging operation.
The inspection found that the road construction is suitable only to support short-term logging operations with
the routes following the ridge lines and only temporary log bridges.
There is no access being created to the low-lying and flatter areas that could be suitable for agriculture
planting. There was also no evidence of proper draining and culverts as needed if the roading is to support
long-term agriculture and as required in the Logging Code of Practice.
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ANOTHER BOGUS AGRICULTURE PROJECT?
MILLENNIUM CORPORATION
Compounding all the concerns noted above, it appears Millennium Corporation has no documented history of
involvement in agriculture.
The company was first registered in 2016. Since then, it has been involved in large-scale logging in three areas
in New Ireland Province and on East Ferguson Island in Milne Bay.
Millennium Corporation has a single director, Malaysian Pak Cheng Wong. It is owned by a parent company,
Eatonwood Limited, registered in the British Virgin Islands, an offshore tax haven.
Province Concession Area Licence Licence Year(s) Period Contractor/Exporter Parent Log
(Ha) Type Number Acquired (years) Company Exports
Milne Bay East Ferguson 31,254 TRP 04-04 1987 40 MILLENNIUM EATONWOOD 19,914
CORPORATION LIMITED
New Tewelas n/a TRP 16-32 n/a n/a MILLENNIUM EATONWOOD 111,251
Ireland (Konos-Pue) CORPORATION LIMITED
New Nakmai 109,403 LFA 16-01 1974 20 MILLENNIUM EATONWOOD 77,667
Ireland CORPORATION LIMITED
New Ugana 9,015 LFA 16-02 1976 20 MILLENNIUM EATONWOOD 34,338
Ireland CORPORATION LIMITED
TABLE: Millennium Corporation large-scale logging operations in PNG. Source: PNGiForests
GRAPH: Millennium Corporation has exported a total of 243,170 cubic metres of logs from its four logging
concessions. Source: PNGiForests
RIGHT OF REPLY
Details of the analysis and findings in this Briefing Paper were sent to Millennium Corporation at their
registered address and to Mr Wong Kee Chiew, Millennium general manager, inviting their response; no
replies were received.
Details were also sent to the Managing Director of the Papua New Guinea Forest Authority, with copies to the
Chair of the National Forest Board and Minister for Forests; no replies were received.
ENDNOTES
1See for example, [1] Ten Years Without a Crop: The Wammy Rural Development Project, ACT NOW and
Jubilee Australia, 2023. [2} A New Forest Grab: The Mengen Integrated Agriculture Project, ACT NOW, 2023.
[3] Where’s the Beef? The Wasu ‘Cattle Farm’ Project, ACT NOW, 2023.
2 Simakade Holdings Limited & others v National Forest Board & others (2018) OS (JR) No.144.
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ANOTHER BOGUS AGRICULTURE PROJECT?
LOANI BWANABWANA FOREST CLEARANCE: 7 ANOTHER BOGUS AGRICULTURE PROJECT?
