Govt to seek new investors to operate logging concession …will investigate DTL
DTL Head Office in Kingston, Georgetown
DTL Head Office in Kingston, Georgetown

THE Government of Guyana will be seeking new investors to operate the logging concession at Mabura Hill even as it launches an investigation into allegations that Demerara Timbers Limited (DTL) is closing down its operations there.In a statement issued on Thursday, the Natural Resources Ministry noted that it is concerned about unconfirmed reports in the media that DTL will be winding up its operations at its Mabura Hill location by the end of 2016.

As such, the Guyana Forestry Commission (GFC) has been mandated to investigate and provide a report.

“In the interim, the Government of Guyana, through the Ministry of Natural Resources, and the GFC, will seek new investors willing to operate the concessions held by Demerara Timbers Ltd. in a manner that is sustainable, environmentally friendly and respectful of workers’ rights,” the Ministry stated.

The Ministry also expressed grave concern about the company’s recent decision to dismiss eleven of its workers for engaging in a protest action against the company.

“It is hoped that between the company and the Guyana Agricultural and General Workers Union (GAWU) this matter is amicably and speedily resolved,” the Natural Resources Ministry noted in the statement.

DTL in a meeting with GAWU had indicated that it was closing shop by year-end after furnishing the union with a list of employees who will soon become redundant.

However, this disclosure was made while GFC was left out in the dark. On Wednesday, GFC Chairperson, Jocelyn Dow told Guyana Chronicle that DTL has not indicated its attention to close down its logging operation here, nor has it applied to transfer its shares to another foreign company.

Dow, however, indicated that the logging company which operates at Mabura Hill in Region 10 had applied for an extension of its 25-year-old lease which has since expired but permission was not granted.

The logging company subsequently secured an injunction from the High Court in July barring the Commission from closing down its operations.

In 1991, DTL signed onto a 25-year-old lease agreement called Timbers Sales Agreement (TSA). However, in recent years, it was unable to fulfill many of the requirements under the TSA, particularly with regards to production and the payment of royalties.

The company reportedly owes the Commission $26M in royalties and acreage fees. The Chairperson of the Forestry Commission said that it was unreasonable for the logging company to believe that its 25-year-lease should be automatically extended when it has failed to fulfilled all of the criteria in the investment agreement.

If the company closes its operations without fully paying the Commission, Dow said the Commission will explore a number of options to recover the outstanding monies.

However, she made it clear that the Commission has not been unreasonable to any operator in the Forestry Sector but said it is the duty of the Commission to ensure that these companies abide by their investment agreements.

Guyana Chronicle has made several attempts to solicit a comment from the Management of DTL but to no avail.

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