Established in 1971, Open Bay Timber (OBT) Limited is one of Papua New Guinea's forestry development firms. The company and the PNG government entered into a Project Agreement (PA) in 1973, and activities began in 1974. The Project Agreement underwent revision in 1984, and a large-scale reforestation initiative was initiated in the same year on state land that the OBT had leased. The project spans four (4) Forest Management Units and a total area of 31,260 hectares.
The PA came to an end in 2004, and a new one was signed with a 40-year duration. The company is required to build and expand its tree plantation hectares across the leased area as per the new PA.
The company, which is a part of the Sumitomo Forestry Group, operates plantations and engages in the export and sale of round logs and timber from plantations in the Independent State of Papua New Guinea. Previously, Kowa Lumber Co., Ltd., a company that deals in importing, exporting, and selling wood, and Kowa Lumber Co., Ltd., a wholly-owned subsidiary of Sumitomo Forestry Co., Ltd., owned OBT. As Kowa Lumber Co., Ltd. was eliminated in 2015, OBT is now formally affiliated with Sumitomo Forestry Group.
OBT has a variety of tree species, including the widely planted Kamarere (Eucalyptus deglupta), as well as Talis (Terminalia brassii), Acacia (Acacia mangium), Erima (Octomeles sumatrana), Taun (Pometia pinnata), and Labula (Anthocephalus chinesis). Kamarere is native to the country and is generally allowed to grow for 18 years before harvesting.
The main guide to sustainable forest management in its operations will be the PNG Forestry Laws and Regulations embodied in the PNG Logging Code of Practice (PNGLCOP), including other PNG Government Laws.
