Returns to Landowners

Positive Returns to Landowners

We are proud to report positive improvements to Landowners, here’s some of the highlights:

  1. Lease rental of $13 per hectare;
  2. Stumpage payment at 12% of net revenue (revenue less direct cost of logging, cartage and roading);
  3. 3% Forest Base Levy. This is paid to the Forest Base Companies to venture into business activities with the pine industry thereby increasing landowner participation and returns;
  4. 2.5% Forest Trust Levy. This is paid to the Forest Base Trusts for community based projects;
  5. Lease premium of $20 per hectares – this is on lease renewals when offer letters are received from iTLTB;
  6. Lease Security Bonus Payments – this is announced based on the company’s performance after the annual accounts have been audited. LSBP methodology is as follows:
    • 30% of the LSBP amount is distributed equally to the mataqali members through iTLTB’s equal lease distribution mechanism. There is no deduction of any fee by iTLTB. Fiji Pine group pays iTLTB’s service fee separately.
    • 70% of the LSBP amount is directed towards mataqali based projects. We provide project options for our landowners to choose from. These are projects for community or community-based business developments – like housing, sanitation, bore hole, water pumps, boat, boat engines, generators, etc. We would like to see real benefits out of the LSBP event to pass to the mataqali members.
      • Mataqali can propose other capital projects based on need or requirements that will benefit their community.
      • All capital projects must be undertaken for the overall good of the Mataqali or landowning units.
      • All requests for capital project proposals must be made through general consensus of Mataqali or Tokatoka members and signed by majority members.

Improving Returns Year-on-Year

To-date Fiji Pine group has paid $25 million in LSBP :-

  • 2013     $661,835 ($10 per hectare)
  • 2014     $1,000,000 ($15.50 per hectare)
  • 2015     $1,500,000 ($21.33 per hectare)
  • 2016     $1,500,000 ($20.90 per hectare)
  • 2017     $1,500,000 ($20.90 per hectare)
  • 2018     $7,188,994
  • 2019     $7,002,839
  • 2020    $5,000,000

Prior to 2013 landowners did not receive a cent and this resulted in mistrust. We are proud to say that this mistrust has been replaced with trust.

Last year, Fiji Pine Group paid a record amount of $5m in LSBP out of 2020 audited financial results. 

Forest Trust Levy

When matured Pine is harvested from the respective forest areas that are leased, Fiji Pine Limited contributes 2.5% of its logging cost towards Landowner based community projects. We call this Forest Trust Levy.

Returns to Our Landowners from 2012 to March 2021

Return to Our Landowners - All Forests Updated-1