Sarawak-based WTK Holdings Bhd has secured a 300,000 acre concession from the Kedah state government to conduct heli-harvesting in the area.
WTK anticipates this could boost its earnings by as much as 40% from its financial year ending December 2003.
The project, which has an estimated value of M$2.7bn, could begin in about six months after the completion of the environmental impact assessment and environment management plan, both currently under way.
The concession period is for 10 years with a quota of three trees per acre.
Heli-harvesting has been specified as it is efficient and environmentally friendly – but a total of 15,000m3 a month needs to be logged to justify the expense. However, Kedah is rich in quality logs such as dark red meranti which will offset the cost.
WTK will undertake a reforestation programme in line with the International Tropical Timber Organisation objective towards gaining wider acceptability of tropical timber.
