Green Resources’ largest future expansion is focused on Northern Mozambique. The existing plantations in Mozambique are modest, with 2,700 ha of standing plantations. However, the platform has been put in place for a sharp increase in the speed of the planting from 2013 onwards. Investments include the country’s most modern tree nursery.
Mozambique is a large, sparsely populated country with huge agriculture and forestry potential. It has the potential to establish one or more forest plantations that could supply wood for world-scale forest industries, including pulp production, and could become Africa’s largest forestry nation. The discovery of large reserves of natural gas in Northern Mozambique will ensure a first-class energy supply for future processing facilities; the discovery of large reserves of coal inland has already led to major investments in road and rail infrastructure.
Green Resources’ Lurio project is aiming to establish 126,000 ha of new hardwood forest plantations in Nampula Province. Combined with additional supplies from smallholder farms and local small- and medium-sized enterprises, there will be sufficient supplies for a world-scale pulp mill, which could become one of the very lowest-cost producers worldwide. The logistics are excellent, with good connections to the Nacala deep-water port. Many other wood industries can start up well ahead of a pulp mill, including charcoal, wood chips and pellets, and Northern Mozambique could become the ‘domestic’ supplier of panel boards to the Indian Ocean region.
Green Resources is also one of half a dozen companies that have established around 30,000 ha of new forest plantations in Niassa Province, located inland from Nampula. At a higher altitude, the Niassa plantations have, to a large extent, been focused on pine, but driven by interest from international pulp companies, an increasing amount of eucalyptus has been planted during the last couple of years. Niassa is a likely future producer of solid wood products for the Indian Ocean region, but there are also early plans for a pulp mill in the province.