NEW IRELAND will have the opportunity to process balsa onshore when it has a processing factory and mill, according to New Ireland Governor Byron Chan.
The provincial government signed a memorandum of understanding on Friday with Boinatuna Holdings Limited to set up a balsa wood processing factory and mill in the province.
Hongland International is the parent company of Boinatuna Holdings Limited, a Papua New Guinea incorporated company engaged in timber processing.
Chan said the agreement would give an opportunity to the people of New Ireland to participate in the onshore commercialisation of renewable resources.
The 12-month term agreement was part of the provincial government’s commitment to sustainable economic growth, agricultural value-adding, and local employment generation.
“Balsa wood is ideally suited to our soils and climate, and this investment will create meaningful employment, support our smallholder farmers, and build lasting value in our local economy,” Chan said.
The proposed facility will be located on the western side of Namatanai, with direct coastal access to facilitate the efficient export of processed balsa timber.
Under the terms of the agreement, Boinatuna Holdings Limited will design, finance, construct, and operate a balsa wood processing factory and mill on a 10-hectare piece of land.
The facility is expected to employ 1,500 or more workers at full operation with priority given to the people of New Ireland and adjacent communities.
