PNG Diwai Holdings Limited, the business arm of the PNG Forest Authority (PNGFA), is currently engaged in discussions with the forest industry to explore plans for advancing into downstream processing.
PNGFA Managing Director and Executive Chairman of PNG Diwai Holdings, John Mosoro, shared this development during an interview on the Nasfund FM100 Talk Back Show recently.
Mr. Mosoro announced that the government aims to phase out round log exports by 2025, shifting the forest sector towards downstream timber processing and exploring alternative revenue streams, such as carbon trading and pharmaceutical products.
He also revealed plans for establishing four regional log marketing centers to support the transition.
“We are prioritizing discussions and preparations for downstream processing and other sustainable uses of forest resources,” Mr. Mosoro said.
“This includes collaborating with industry stakeholders who have their own insights, as we work towards achieving these goals.”
The proposed log marketing points will be located in four regions across the country: Vanimo in West Sepik, Lae in Morobe, East and West New Britain, and Port Moresby’s Lealea area in the National Capital District.
Mr. Mosoro highlighted the establishment of PNG Diwai Holdings as one of PNGFA’s significant achievements, noting that key amendments to support these initiatives are set to be presented as a bill to Parliament, targeted for either December or the first session next year.
Diwai Holdings is expected to acquire 30% of logs produced by logging companies, a first for the sector.
“There is a market demand, and the government is prepared to take an active role in supporting the economic sector to deliver services for our people,” he stated.
“Landowners are now recognized beyond just receiving levies and royalties. Under the new Forestry Act, they will receive equity, especially if they supply logs for a downstream processing facility.”
Mr. Mosoro also shared his aspirations for Diwai Holdings to redefine PNG’s approach to forest product marketing.
He expressed that this initiative will bring significant benefits to landowners, who will also share equity in downstream processing ventures.
He described FSEM as a pioneering tool to economically evaluate PNG’s Forest resources, including carbon stocks for trade purposes, a concept he began exploring in 2022 with then-British High Commissioner Keith Scott.
The British government is providing technical support for FSEM through its 10-year forest governance program with PNGFA.
“Until now, we hadn’t fully valued our forest resources beyond logging. We didn’t account for their pharmaceutical, biodiversity, traditional, and cultural significance,” Mr. Mosoro said.
Nasfund FM100 co-host Josu Kim lauded Mr. Mosoro as “a dynamic and action-oriented MD,” recognizing his impact on the PNG Forest Authority.
