No progress on government, Border Timbers settlement

BORDER Timbers (Border) says no finalisation has yet been reached in ongoing negotiations with the government on the settlement of the company’s award from a 2015 arbitration.
In 2010, the company filed a request for arbitration with the International Center for the Settlement of Investment Disputes (ICSID) against the expropriation of its land by the government.
And in July 2015, the arbitral tribunal issued an award in favour of the company and its associates to the tune of US$124 million.
“The company is constantly engaging the government on the settlement structure and timing of the ICSID award,” Border said in a statement accompanying its results for the half-year ended December 31, 2022.

“In the meantime, operations on the ground have continued smoothly.”
In 2018, an ICSID ad hoc committee dismissed the government’s application for an annulment of the award.
Meanwhile, chairman Elias Hwenga says the company’s product quality remains highly regarded in the market and the current marketing efforts are expected to increase demand for kiln dried timber.
“Recapitalisation remains a key priority, with our replanting programme already on course to reduce the unplanted area to the industry standard of five percent in the next three years.
“The company is also recapitalising its two sawmills with the latest milling technology and commissioning of the new machinery is now expected by December 2023,” Hwenga said.
During the period under review, the company replanted 239 hectares against a target of 357 hectares. The full-year target is 1 100 hectares and Border anticipates achieving this due to the just ended rainy season. Lumber sales volume was 27 percent lower compared to the comparative period in the prior year, owing to low customer demand in the local market.
“We remain optimistic that the demand for lumber will rebound in the local market and we continue being aggressive to expand the export market in the region and beyond,” Hwenga said.
Hwenga highlighted that the major risk remains the loss of forestry to fire and to mitigate that, the company has strengthened its plantation patrol teams through enhanced fire-fighting training and acquisition of additional fire-fighting equipment during the period.
“Our Imbeza Estate is already Forest Stewardship Council-certified and review and audit processes are ongoing for Sheba and Charter Estates, with full certification of both estates expected by the end of 2023,” he