Properties
The property consists of 25,700 acres of land located in Tocantins Brazil. The investment strategy is to establish a high-yield eucalyptus plantation for conversion to charcoal to sell to pig iron producers, or to sell to other developing markets such as paper in the region. Conditions for Forestry are favorable due to plentiful rainfall and excellent soils.
This greenfield eucalyptus project is being developed on land previously used for grazing. Approximately 50% of the land will be set aside in reserve to maintain and grow the natural vegetation that exists in this ecosystem. Producing charcoal from eucalyptus rather than from mineral coal or native forest is beneficial environmentally as it reduces emissions and deforestation pressure. Charcoal is preferred over coal because it is a renewable fuel source and its lower sulfur content results in pig-iron that can be used for higher-value applications.
Cambium believes that the plantation when established will qualify for forest certification under Forest Stewardship Council and believes that it may be possible to produce carbon credits for regulated or voluntary markets.
As of June 2011 approximately 50% of the area to be established has been planted with the remaining portion to be established over the next two planting seasons. Harvesting is anticipated to begin in 2015.
