The Mahogany Industry Council has approved a restructure of the mahogany license issuance framework to reflect industry developments since the establishment of the licensing system in 2011.
The restructure is expected to begin on 1 January 2017.
Prime Minister Voreqe Bainimarama has announced that the new licensing system is based on a more realistic annual log production capacity of 75,000 cubic metres and will also standardise log prices, limit licenses to two per log grade and revise purchase protocols.
He says the mahogany industry has unfortunately suffered from a lack of regulation and organisation and these reforms will dramatically boost efficiency throughout the industry and protect the industry in the long‑term.
Bainimarama says consultations on the licensing restructure were conducted with existing licensees and the Fiji Mahogany Trust, which represents mahogany landowners.
He adds rates for landowners engaged in mahogany leases with Fiji Hardwood Corporation Limited have been reviewed for the first time since 2010.
Bainimarama has also announced that rental and stumpage rates will increase by 19 per cent and premium rates will increase by 20 per cent.
These rates will be back dated to 1 January 2016.
To facilitate the sale of surplus Grade 1 and 2 mahogany logs currently stored in concentration yards, temporary licenses will be issued to FHCL to call for expressions of interests from interested buyers.
A Central Concentration Log yard will also be established at the Waivunu facility in Serua to improve the coordination of log sales and delivery.
Fiji Hardwood Corporation Limited’s recently established nursery project in Nukurua, Tailevu will also reactivate its replanting programme, with a target of replanting 1,250 hectares by the end of the year.
The Mahogany Industry Council oversees major development initiatives implemented within the mahogany industry.
The Council will meet on a quarterly basis to monitor the progress of these initiatives.
