The Cloudy Bay Forest Management Area (FMA) is located in Abau District, Central Province PNG, approximately 250 km south-east of Port Moresby, the capital of PNG. In March 2006 the company was appointed as developer in a 35 Year Forest Management Area (FMA) project in the Cloudy Bay area. This is the first 100% downstream processing development project to be issued by the PNG Forest Authority and comprises 148,900 Hectares gross area for selective harvesting of trees over 50cm DBH with an annual allowable harvest of some 60,000m.

Based on an annual allowable harvest of 60 160 m3/a over a 35 year selective harvesting cycle, We will harvest according to agreed harvesting schedules in order to supply sawn wide boards(slabs) to our wood processing centre located at 9 Mile, Port Moresby.

We operate a fleet of new forestry extraction, hauling and road equipment and practice low impact harvesting techniques. Inventory teams and harvesting managers survey the planned harvest areas for annual and 5 year plans for approval by NFS who verify that the necessary buffer zones, which comprise approximately 50% of the forest area along creeks and more sensitive areas, are left untouched and that river crossings and roads are correctly constructed and sited.

Both the National Forest Service and the Landowners are required to approve harvest and road plans before harvesting commences to ensure that there is no unnecessary disturbance to their communities and traditional and cultural activities and sacred sites.

Roads are opened and constructed a year ahead of the logging operations to allow for road settlement before heavy transport is used on them. Compliance to the Papua New Guinea Logging Code of Practice is required in these activities.

On completion of logging, skid tracks and roads that are no longer required are rehabilitated and bridges are removed. Seedlings of high value indigenous species are planted in these opened areas and tended to until they are large enough to grow alone. Nurseries for the seedlings have been established on site, usually at the local villages.