A Papua New Guinea (PNG) environmental group has welcomed a decision by New Zealand’s High Court to uphold a ban on a NZ company for allegedly importing illegal timber.

The ban affects the LumberBank, a subsidiary of Malaysian-based Rimbunan Hijau, which has logging operations in PNG.

PNG green group the Eco-Forestry Forum said the court’s decision showed the international community was turning its back on the practices of the Malaysian-dominated logging industry in PNG.

The LumberBank had appealed against its expulsion from the NZ Timber Importers Association (NZTIA) for allegedly importing illegal wood from PNG. The company was ordered to pay all costs.

About 80% of tropical timber imports into NZ are controlled by the NZTIA, which works with the country’s biggest timber merchants. Members import timber from small and medium size producers in PNG but have resolved not to deal in illegal and unsustainable timber from large logging companies.