23 August 2006
Today in Cape Town, Cabinet approved the recommendation of the Cabinet
Economic Cluster Committee to retain the forests managed by Komatiland Forests
(Pty) Ltd (KLF) in public ownership, for the foreseeable future.
Government views concerns regarding the industry structure in a serious
light and this decision allows a transition period for the best available
solution to be found.
During the hearings of the tribunal into the proposed merger of KLF with the
Bonheur consortium, concerns were expressed about the structure of the saw log
supply industry in Mpumalanga and Limpopo. As a result of those concerns, the
Department of Public Enterprises, in consultation with other state departments,
is now reviewing the future role of South African Forestry Company (SAFCOL),
the state-owned forest management company, and its wholly owned subsidiary
KLF.
The review will aim to ensure that the state-owned forests contribute
optimally to Government's objectives for the forestry, timber, pulp and paper
sector.
Enquires:
Ms Gaynor Kast
Ministerial Spokesperson
Tel: (012) 431 1000
Cell: 083 271 4350
Fax: (012) 431 1039
Issued by: Department of Public Enterprises
23 August 2006
