Logo of Phnom Penh Post newspaper Phnom Penh Post - Firm attributes losses to logging crackdown

Firm attributes losses to logging crackdown

Firm attributes losses to logging crackdown

CHINA Asean Resources Ltd, a Hong Kong-listed company operating a timber concession in Kratie province and a medical supply business in China, on Tuesday blamed government red tape associated with logging for part of a US$2.858 million loss over the nine months ending September 30.

It earned $3.645 million in profit in the same period a year earlier, it said in a statement announcing quarter three financial results.

The firm said it had halted logging on a 10,000-hectare concession in Kratie province that originally contained more than 5 million cubic metres of timber stock. It made $6.72 million from the site in the first nine months of 2008.

The statement said the company had been inadvertently affected by a government ban on the illegal export of timber to save forest and promote carbon-credit trading.

“This crackdown on the illegal timber trade has had unintended negative repercussions on the legal export of timber products,” it said. “These include an increase in administrative procedures in relation to the export of timber products, and significant delays in the processing of trade documentation.”

The Ministry of Forestry declined to comment Thursday, citing confidentiality concerns.

China Asean said it intends to use the cleared land for cultivating rubber and acacia trees along with jatropha, a shrub used to produce bio-
diesel.

The company's share price plummeted 8 percent this week to HK$0.138 (US$0.02) at the end of trading Friday.

MOST VIEWED

  • Prince injured, wife dies after accident

    THE wife of former First Prime Minister Prince Norodom Ranariddh, Ouk Phalla, 39, died while the prince was “severely” injured following a road accident in Preah Sihanouk province’s Prey Nub district on Sunday morning, officials said. Rananriddh, who is also the president of the Funcinpec

  • Former opposition leader tells soldiers, Cambodians to unite to fight CPP

    Former Cambodia National Rescue Party (CNRP) President Sam Rainsy has called for a popular uprising after the July 29 national elections to force a change of government. He called on the armed forces and people to stand united to fight the ruling Cambodian People’s Party-led

  • Bun Heang mocks US, threatens its citizens in scathing open letter

    After being hit with sanctions from the US Department of Treasury, Cambodian General Hing Bun Heang said he would retaliate against any US national who does not respect his country’s sovereignty, has ambitions to invade Cambodia or incites “traitors” in the Kingdom to do

  • Police warn boycott FB group involved in the “Clean Fingers Campaign”

    Police said on Tuesday that they will pick up members of a Facebook group involved in the “Clean Fingers Campaign” that promotes a boycott of next month’s national elections. However, police merely planned to “educate” the group for now, but warned that if the