Properties
Cambium acquired properties totaling 29,300 acres in Minas Gerais, Brazil. The investment strategy consists of the establishment of high-yield eucalyptus plantations for the production of charcoal to the pig-iron industry 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 estates 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 season. Harvesting is anticipated to begin in 2015.
