The plant would process merbau according to forestry minister Malem Sambat Kaban who said around 800,000m3 of the timber will be required for the Olympics.
Experts have forecast that the development of China’s infrastructure for the Games will require tens of millions of cubic metres of primary forest products, including solid wood flooring.
Mr Kaban said that the timber processing factory in Papua would be the only way the company could meet its timber needs as the export of round logs has been banned since 2001.
But the proposal is concerning environmentalists who are worried it might accelerate deforestation in Papua and fuel further illegal logging.
A forestry minister spokesperson has pledged that the company would only be supplied with logs harvested from timber plantations – and that it will be required to establish its own timber plantations.
He said that if the planned investment is approved by all parties, the company will be required to implement sustainable forestry management measures, and added: “We are confident that such a large investment will mean a long term presence.”
