SOUTHEM ONLINE Southern Hemisphere Forest Industry Journal Online news briefs SOUTHEM Online - Issue 277 – 20 December

2011 Hi and Hola - Welcome to this edition of Southem Online. Hi and Hola - Welcome to this edition of Southem Online. US investor Hancock Natural Resource Group has been cleared by the competition watchdog to buy cutting rights in South Australian forests, underlining the continued interest in southern hemisphere forests. As well, Finland's UPM, which has invested in Uruguay, is launching a eucalypt research centre, and Global Environment Fund is boosting its presence in South Africa with a former International Finance Corporation executive. Not all is smooth running, of course, Seattle-based developer David Syre, whose Trillum has been involved in large-scale native forest deal in Chile and Argentina, has filed for bankruptcy. Thanks for reading Southem Online in 2011 and many thanks to our supporters and sponsors. Have a great Christmas and a Happy New Year. Cheers and Saludos from Down Under Mike Smith Editor and Director Email: info@southem.com URL: www.southem.com SOUTHEM COMMUNITY REGISTRATION You can register for this free e-news headlines service. Send an email to subscribe@southem.com LINKEDIN GROUP @ http://www.linkedin.com/groups?mostPopular=&gid=2218173 YAHOO GROUP @ http://finance.groups.yahoo.com/group/southemonline/?yguid=224336867 FACEBOOK @ http://www.facebook.com/pages/southem/33458700993?ref=ts SPONSORS’ MESSAGES Help keep this publication free – please visit our sponsors today! Contact info@southem.com for sponsorship details. COMPANIES ACROSS THE FOREST INDUSTRY USING REMSOFT’S ASSET OPTIMIZATION AND ANALYTICS SOLUTIONS Remsoft, a leading provider of asset lifecycle optimization solutions, has announced that it continues to see innovative companies turn to its technology and expertise to help optimize land assets, improve sustainability and become more efficient organizations. Latvia is one of the most forested areas in the world, with more than 46 percent of the country being covered by forest. The nation’s government looked to Remsoft and its partner Savcor Forest to help it optimize its operational harvest planning and how best to meet market, social, economic and sustainability

objectives. Through Remsoft’s analytics and optimization technology, Latvia will be able to lower costs and create a more efficient, effective way of operating, ultimately increasing profits. www.remsoft.com UGA/WARNELL CENTER DEVELOPS INVASIVE SPECIES TRACKING APP The Everglades National Park has released a much expanded mobile app for tracking invasive exotics in Florida. The “IveGot1” app was developed by Park and University of Georgia researchers for the popular iPhone to identify and report invasive plants and animals spotted in Florida. IveGot1 is a real time integrated invasive species reporting tool and part of a comprehensive outreach campaign on invasive exotic plants and animals in Florida. The project includes the app, a website with direct access to invasive species reporting, and a hotline 1-888-IVEGOT1 for instant reporting of live animals. This app allows observations of invasive species to be reported directly with an iPhone that uploads to a designated location and is e-mailed directly to local and state verifiers for review. The goal of the IveGot1 app is to make identification and reporting of these problematic species easy and efficient as possible. You can download this free app at the following link: http://itunes.apple.com/us/app/ivegot1-identify-report-invasive/id381326170?mt=8 For more information contact: University of Georgia’s Chuck Bargeron, +1-229-386-3298 **************************************** COPYRIGHT NOTICE Items headlined in SOUTHEM Online are drawn from a number of sources. The source of the item is quoted, either by publication or organisations in line with the practice of fair reporting. Items originally published in Spanish are translated by TMS Ltd. Every effort is made to ensure use of paid wire service material is avoided at all times. Should users wish to utilise SOUTHEM Online on their own web sites, we request that this is done to accurately reflect the current layout to ensure attribution is appropriate. ************************************************ ACCC CLEARS HANCOCK NATURAL RESOURCE GROUP TO BUY SOUTH AUSTRALIAN CUTTING RIGHTS Australia’s competition’s watchdog has cleared North American investor Hancock Natural Resource Group Inc to buy cutting rights to a substantial area of softwood timber plantations off the South Australian Government. The ACCC considered the proposed acquisition in the context of the market for the supply of softwood timber in the Green Triangle region, formed the view that the proposed acquisition was unlikely to substantially lessen competition in the relevant market. The state government committed to a number of conditions on the cutting rights in order tolimit Hancock’s ability to vary wood supplies to local users. HEAT GOES ON SOUTH AUSTRALIAN TIMBER SALE

Meanwhile, the sale of South Australian state agency ForestrySA's forward cutting rights is looking to be a hotly contested process, with at least six North American buyers showing keen interest, The Australian Financial Review reported. UBS and SA Treasury returned recently from a 10-day North American tour where they were marketing the top quality forestry assets located in the "Green Triangle" region between South Australia and the neighbouring state of Victoria. It is estimated that a deal might be struck between $500 million and $600 million. UPM-KYMMENE ESTABLISHING COMPETENCE CENTRE FOR EUCALYPT RESEARCH IN URUGUAY Finland’s UPM will strengthen its research on eucalypt fibre and build a competence centre at the Fray Bentos pulp mill in Uruguay, a company statement said. The new centre including expansion of the existing laboratory facilities will be operational during the first half of 2012. The new competence centre will focus on the research of eucalyptus species and their impact on end product properties. The Fray Bentos competence centre will evaluate the aspects of the eucalyptus species growing in Uruguay with the aim to accelerate the process of selecting the best trees to be planted in the future. TRILLUM OWNER FILES FOR CHAPTER 11 PROTECTION A US developer with timber interests in Argentina has filed for bankruptcy protection. The Seattle Times reported David Syre, a prominent developer and timber baron from Bellingham near Seattle in the state of Washington, had filed for Chapter 11 protection. The report quoted his lawyer as saying he expects all creditors will be repaid in full. Syre is the sole owner of Trillum, a timber and development company with land holdings in Alaska and California, as well as timber projects in Argentina. Trillum project , first in Chile and more recently in Argentina, have been controversial as they involve ancient lenga forests in the Tierra del Fuego region. FORMER IFC PROJECT MANAGER TAKES SOUTH AFRICAN REIGNS FOR GLOBAL ENVIRONMENT FUND A former International Finance Corporation project manager has joined the Global Environment Fund (GEF) forestry team, the company said in a statement. Dwight O’Donnell joins GEF’s Forestry Team as a Senior Investment Partner, bringing more than 35 years of forest products industry experience to GEF’s investments in timber in South Africa. Prior to joining GEF, Mr. O’Donnell developed and participated in over 50 projects at the International Finance Corporation (IFC), resulting in investments of over $1 billion. His appointment is on of three new senior professional appointments to the firm. “With these additions, GEF bolsters its capabilities in terms of timber investments, Environmental and Social Governance (ESG) and fund formation,” the statement said. BRAZIL AND ARGENTINA RESEARCH AGENCIES TO COOPERATE Leading forest research agencies in Brazil and Argentina have to cooperate in future developments. Argentina’s INTA and Brazil’s EMBRAPA signed the forest development agreement when the INTA’S Forest Program Coordinator, Tomás Schlichter, held in Colombo, Paraná, Brazil, a meeting with , Helton Damin Da Silva, the Director General of the Brazilian Research Institute EMBRAPA Florestas. The aim is to analyse the opportunities that around an agreement between both institutions regarding the forest development in both countries. During the meeting

the areas of regional cooperation were revised and visited one another the new facilities of the area of control of tree diseases. SECURITY ROUND UP IN NZ’S LARGEST PLANTATION FOREST Police have cracked down on criminal activity in New Zealand's largest plantation forest ahead of the summer fire season. The Daily Post in Rotorua reported the operation came after “a growing problem with diesel thefts, including one incident in which 4000 litres was taken”. It’s reported the three-week operation in the giant Kaingaroa Forest involved police, along with the U.S.-owned Timberlands and its security company, and uncovered a spate of criminality in Kaingaroa Forest. Twenty 20 arrests were made on firearms charges, theft and unlawful driving. As well, 45 people have had trespass notices issued against them, banning them from entering the forest, where its size has encourage the lucrative growing of cannabis plants. SOUTH AFRICA URGED TO CONSIDER PLACING A PRICE ON CARBON Policy makers in South Africa have been urged focus their efforts on placing a price on carbon in the next few years, Engineering News has reported. Paul Curnow, Sydney-based partner with global law firm Baker & McKenzie is reported as saying that, like Australia, which plans to introduce a carbon tax in July 2012, South Africa would have to look at measures, such as a trading scheme or other carbon-related instruments, in the next decade to reduce its greenhouse-gas emissions. Curnow said he believed that carbon markets were an important mechanism for the implementation of the international climate change regime. BITUMEN SHORTAGES PUT BRAKES ON SOUTH AFRICAN ROADING A bitumen shortage is set to put the brakes on South Africa’s infrastructure development in 2011-12, according to a report in Engineering News. Current indications were that more than R1-billion of work would not be completed by contractors working on South African National Roads Agency Limited (Sanral) projects in the financial year, owing to the bitumen shortage in the country, said Minister of Transport Sibusiso Ndebele in a written response to a question posed by the Democratic Alliance in Parliament. Sanral, which accounted for 70% of 2010 road bitumen used in South Africa, was “severely affected” by the shortage of bitumen. AMCOR WINS AUSTRALIAN SUSTAINABILITY AWARD Australian packaging group Amcor has been recognised with an award at the prestigious Australian Sustainability Awards held recently in Melbourne. The Awards are an initiative of Ethical Investor Magazine which recognises leading environmental, social and corporate governance practice as judged by Environmental, Social and Governance (ESG) analysts, investors and fund managers. DEPUTIES APPROVE TIGHTER RULES ON FOREST EXPLOITATION IN BRAZIL’S MS In Brazil, deputies have approved a project that imposes disciplines on the exploitation of forests in Mato Grosso do Sul. Meanwhile a proposal voting on the submission of report on land purchase by foreigners has been postponed until 2012, Painel Florestal reported.

PROJECT WILL MEASURE CHILE’S OLD-GROWTH FORESTS FOR CARBON CREDIT SALES POTENTIAL Chilean scientists are set to measure the quantity of carbon dioxide absorbed by the country’s old-growth forests, The Santiago Times reported. The report says that although the old-growth forests of southern Chile and Argentina are known to absorb a significant quantity of CO2, there is no definitive figure on total absorption. The Chilean Ecology and Biodiversity Institute (IEB) is being funding by the Chilean National Commission for Science and Technology (Conicyt) to determine these figures by the end of 2012. The outcome could see Chile sell carbon credits on the international market. SINO–FOREST CORPORATION RECEIVES DEFAULT NOTICES The Chinese-based and Canadian-listed Sino-Forest Corporation has received written notices of default in respect of its senior notes due in 2014 and 2017, a press statement said. Sino-Forest’s Greenheart controls forest assets in New Zealand and Suriname (Latin America). The notices, which were sent by the Trustee under the Senior Note Indentures, reference the Company's previously disclosed failure to release its 2011 third quarter financial results on a timely basis. The statement said the company did not expect to file the Q3 Results in the required period. NZ RICH-LISTER TURNS AGAINST SINO-FOREST AS LOSSES MOUNT Meanwhile, Toronto’s Globe and Mail newspaper has reported New Zealander, Richard Chandler, who is Sino-Forest’s largest shareholder, has turned against the company. Mr Chandler was Sino-Forest’s biggest ally amid fraud allegations levelled by short-seller Carson Block and his firm Muddy Waters LLC, as well as investigations by the Ontario Securities Commission and the RCMP, the report said. “Now, the New Zealand native, who has previously made bullish bets on struggling companies with governance issues, has turned against Sino-Forest, which earlier this year was the most valuable forestry company listed on a Canadian exchange, with a market capitalization of more than $6-billion.” NEW ZEALAND MODIFIED PINE PRODUCT GOES INTO EUROPEAN KITCHENS New Zealand company Fortified Timber Systems has recently completed its first year of supplying Danish worktop manufacturer Spekva, which distributes throughout Europe and into Britain, the Bay of Plenty Times has reported. The specialist Tauranga processor and exporter has sent eight 40-foot containers, totalling 8500 lineal metres of its modified or hardened wood product called Lignia, to Spekva Danish worktop manufacturer Spekva, which distributes throughout Europe and into Britain - and it will be filling another container in January for delivery two months later. SOUTHERN HEMISPHERE VIDEOS AOTEAROA NEW ZEALAND CHRISTMAS – UNDER A POHUTUKAWA TREE In the southern hemisphere, we celebrate Christmas in the summer. Here is a video celebrating the New Zealand version. http://www.youtube.com/watch?v=aSRAFe6WwLA ************************************************

ARTICLES OF INTEREST: PERFORMANCE OF BEAMS Pedrosa,A.L. Universidade Federal do Paraná, 2003. (dissertação). Performace de vigas I constituídas por flanges de PLP e almas de compensado de Pinus taeda L. e Eucalyptus dunnii Maiden, e alma de OSB de Pinus spp. (Performance of beams consisting of composite wood technologies using Pinus taeda L. and Eucalyptus dunnii Maiden, with a core of OSB from Pinus spp.). www.ipef.br/servicos/teses/arquivos/pedrosa,al.pdf SAVING NATIVE FOREST BIRDS Gerry McSweeney. Saving West Coast and New Zealand Native Forests and Birds. Pages: 11–13. NZ Journal of Forestry, November 2011. Vol. 56, Issue 3. http://www.nzjf.org/abstract.php?volume_issue=j56_3&first_page=11 ************************************************ SOUTHEM KORERO Abstract deadline extended IUFRO MELIACEAE MEETING The deadline for abstracts has been extended to December 31, 2011 *for the first meeting of the IUFRO working party 1.02.04 – Sustainable management and genetic resources in Meliaceae. This meeting will be held on Monday and Tuesday, June 25 and 26, 2012 in Nairobi, Kenya. The purpose of the meeting is to share the latest in research and applications for a global perspective on solutions for the tropical timber species of the Meliaceae (subfamily Swietenoideae). This meeting will be held in conjunction with the IUFRO-FORNESSA Regional Congress in Africa (IUFRO = International Union of Forest Research Organizations; FORNESSA = Forestry Research Network of Sub-Saharan Africa). For more information, see “Upcoming IUFRO Meetings” at: http://www.iufro.org/science/divisions/division1/10000/10200/10204/activities/unit/1.02.04/ LATIN AMERICAN FOREST INDUSTRY CONFERENCE 26, 27 & 28 March 2012. 2 nd Conferencia de Industria Florestal Latino Americana. Second Latin American Forest Industry Conference. Hotel Transamerica, Sao Paulo, SP, Brasil. www.latinaforestconference.com AUSTIMBER 2012 29-31 March 2012. AusTimber 2012. Mount Gambier, South Australia, Australia. http://www.austimber2012.com.au/ ACCURACY 2012 International Spatial Accuracy Research Association (ISARA). The Tenth International Symposium on Spatial Accuracy Assessment in Natural Resources and Environmental Sciences. July 10-13, 2012. Florianópolis, SC – Brazil http://2012.spatial-accuracy.org/

FORESTS AND FOREST PRODUCTS 8-13 July 2012. International Conference on Forests and Forest Products – Actual and Future. Lisboa, Portugal. Includes “Willows and Poplars” and “Wood Quality”. For more information: http://www.iufro2012.org/nm_quemsomos.php?id=37 FOUR DEGREES OR MORE? 12-14 July 2012. Four Degrees or More? Australia in a Hot World. Melbourne, Australia. weblink: http://www.fourdegrees2011.com.au IMPROVING LIVES WITH POPLARS AND WILLOWS - PRE-ANNOUNCEMENT 24th Session of the International Poplar Commission and 46th Executive Committee Meeting. Improving Lives with Poplars and Willows @ Dehradun, India, 8-12 October 2012. http://www.fao.org/forestry/ipc2012/en/ LANDSCAPE ECOLOGY 5-12 November 2012. Biannual IUFRO Forest Landscape Ecology Conference: Sustaining Humans and Forests in Changing Landscapes: Forests, Society and Global Change. Concepción, Chile. IUFRO 8.01.02, http://www.iufro.org/science/divisions/division-8/80000/80100/80102/. Contact: Cristian Echeverria, cristian.echeverria(at)udec.cl; Sandra Luque, sandra.luque(at)cemagref.fr. http://www.iufro.org/science/divisions/division8/80000/80100/80102/activities/ BRAZIL TO HOST 2015 WORLD STATS CONGRESS The Brazilian Institute of Geography and Statistics will host in the second half of 2015, the 60th World Congress of Statistics, organised by the International Statistical Institute. Go to: http://www.isi-web.org/ ************************************************* NEWS ONLINE Do you have news items you wish to make available to others on SOUTHEM Online? If so, please send them to info@southem.com ************************************************ MISSING? Did we miss you off the list, or do you have an associate who may want to receive SOUTHEM Online. If so, please feel free to register by sending a message to info@southem.com ************************************************** REMOVE

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