EXPORT STATISTICS 1997 – 2002

MONTHLY LOG EXPORTS F.O.B. US$ MILLION

0

5

10

15

20

25

30

35

40

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

199719981999200020012002

MONTHLY LOG EXPORTS VOLUME M3’000

0

50

100

150

200

250

300

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

199719981999200020012002

LOG EXPORTS BY DESTINATION

0

10

20

30

40

50

60

70

China Japan Korea India Taiwan Philipns Other

199719981999200020012002

1. Based on percentage of total log export volume. 2. China includes exports to Hong Kong. 3. In 2001 Other is comprised of Malaysia, Indonesia and Vietnam. Indonesia only in 2002.

LOG EXPORTS BY SPECIES (M3 %)

0

5

10

15

20

25

KWI CAL MAL MER TAU TER GP1 GP2 GP3 GP4

199719981999200020012002

1. GP1 includes all other group 1 species not graphed individually.

EXPORT STATISTICS 1992 - 2002

AVERAGE LOG EXPORT PRICE US$ / M3

0

20

40

60

80

100

120

140

160

180

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

$/M3

LOG EXPORTS VOLUME IN M3’million

0

0.5

1

1.5

2

2.5

3

1992 1994 1996 1998 2000 2002

M3mil.

AVERAGE LOG EXPORT PRICES

0

20

40

60

80

100

120

140

160

180

200

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

K/M3US$/M3

Exchange rates 1992 – 1996 Bank PNG Quarterly Economic Bulletin yearly rate 1997 – 2002 Actual average rates for log exports derived from SGS log export reports

KINA / US$ EXCHANGE RATES

0

0.2

0.4

0.6

0.8

1

1.2

1992 1994 1996 1998 2000 2002

K1=$

EXPORT TAX PAID K’million

020406080

100120140160180

1992 1994 1996 1998 2000 2002

K'mil.

1992 – 1996 Government PNG Budget papers 1997 – 2002 SGS log export reports

EXPORT TAX AS % OF F.O.B. VALUE

05

10152025303540

1992 1994 1996 1998 2000 2002

%FOB

Tax rates have been amended from 16-11-93, 3% increase, from 11-03-94, 13% increase, on and from 22-11-95, current revenue system introduced, the effective tax rates increased only slightly but a marginal tax scale based on FOB value in Kina was implemented 26-10-98, the first K130 of FOB value was exempted from tax 09-08-99, the exemption was withdrawn and 1995 rates reapplied 01-01-02, marginal tax rates were reduced by 5%

TOTAL F.O.B. VALUE LOG EXPORTS (million)

0

100

200

300

400

500

600

1992 1994 1996 1998 2000 2002

KinaUS $

F.O.B. EXPORT PRICE US$/M3 AND EXPORT TAX $/M3

0

20

40

60

80

100

120

140

160

180

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

FOB $/M3Tax $/M3

Key Statistics Log Exports 1999 – 2002

1999 2000 2001 2002 Export Volume M3 1,983,852 1,992,527 1,556,220 1,853,550 Value FOB US$ 151,952,894 143,705,096 89,393,440 99,750,854 Value FOB Kina 385,572,125 383,746,252 283,089,897 367,043,757 Export Tax Paid Kina 100,597,156 135,853,442 95,770,091 112,692,564 Average Price US$/M3 76.60 72.12 57.44 53.82 Average Price Kina/M3 194.35 192.59 181.91 198.02 Average Tax Rate 26.1% 35.4% 33.8% 30.7%

NUMBER OF COMPANIES INVOLVED IN LOG EXPORT SUB-SECTOR

0

5

10

15

20

25

30

35

40

45

1997 1998 1999 2000 2001 2002 JUL '03

JAPANESE LOG IMPORTS 1992 – 2001 M3’million

0123456789

10

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

SouthseaNth AmericaRussiaN.Z.Africa/Europe

1.Southsea includes PNG, Malaysia, Indonesia, Solomon Islands. PNG’s share 2001, 20% (1997, 37.5%) 2.Source Japan Lumber Journal 31-5-02.

JAPANESE TIMBER IMPORTS 1992 – 2001 M3’million

0

1

2

3

4

5

6

7

8

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

SouthseaN AmericaRussiaN.Z.ChileEuropePlywood

1.Plywood from all sources (mainly Indonesia 2.7m.M3 and Malaysia 1.8m.M3). 2.Source Japan Lumber Journal 31-5-02.

CHINA FOREST PRODUCTS IMPORTS 1999 - 2000 US$billion

CHINA LOG IMPORTS YR 2000 M3’million

00.5

11.5

22.5

33.5

44.5

1999 2000

LogsTimberPlywoodVeneerPulp/Used PaperPaper/Paperboard

0

1

2

3

4

5

6

7

8

2000

RussiaMalaysiaGabonPNGIndonesiaManyamarGermanyFranceOthersTOTALHardwoodSoftwood

CHINA TIMBER IMPORTS YR 2000 M3’million

0

0.2

0.4

0.6

0.8

1

1.2

1.4

2000

IndonesiaUSRussiaMalaysiaCanadaNZOthers

PROCESSED TIMBER EXPORTS 1992 – 2002 ( K/$ million )

0

20

40

60

80

100

120

140

1992 1994 1996 1998 2000 2002

PNG KUS $

1. Exchange rates 1992-96 Bank PNG yearly rate. 1997-2002 actual average annual rates based on SGS export

reports. 2. Source 1992-98 Bank PNG Quarterly Economic Bulletin. 1999-2002 NFS Price Barometer for export permit

applications and producer reports. 3. 1999 244M3, 2000 65M3 of certified (FSC) lumber of select species was exported. No other figures for small

scale, eco forestry certified production or exports are available.

PROCESSED EXPORTS BY COMMODITY ( M3 ’00 )

0100200300400500600700800

1999 2000 2001 2002

VeneerEaglewoodBalsaPlywoodLumberWoodchip not to scaleRubberw'd

Actual Woodchip volumes 1999 90,000M3

2000 120,000M3 2001 97,060M3 2002 97,428M3

PROCESSED EXPORTS BY VALUE ( US$ ‘000 )

02000400060008000

10000120001400016000

1999 2000 2001 2002

VeneerSand'wdBalsaPlywoodLumberWoodchipRubberw'd

LUMBER, RUBBERWOOD & BALSA EXPORTS BY DESTINATION

( US$’000 )

0

1000

2000

3000

4000

5000

6000

7000

Australi

a

Belgium

New C

al UKIndia

China

Malays

ia NZTah

iti

Taiwan

Indonesia

Other Asia

Europe

200020012002

1. Total value 2000 US$15.3m, 2001 US$16.2m, 2002 US$15.2m

LUMBER EXPORTS BY SPECIES M3

0

5000

10000

15000

20000

25000

Malas

Furn C

ompKwila

Pencil

Cdr

Other Grp

1Mixe

d

Rosew'd

Taun

Teak

200020012002

AVERAGE EXPORT PRICES MAJOR SPECIES US$/M3

0 200 400 600 800 1000

Balsa

Kempas

Kwila

Mixed

Rosew'd

Rubberw'd

Taun

Teak

200220012000

AVERAGE EXPORT PRICES MINOR SPECIES

& OTHER PRODUCTS US$/M3

0 100 200 300 400 500

Malas

Calo.

Plyw'd

Veneer

Woodchip

Walnut

Vitex

Pencil Cdr

200220012000

PLANTATION DEVELOPMENT AREAS PLANTED AS AT END OF YR, Ha’s

0 5000 10000 15000

Brown Rv

Bulolo

Gogol

Madang

Fayatina

Ialibu

Kainantu

Kaut

Kerevat

Kuriva

Lapegu

Open Bay

Stettin Bay

Ulabo

Wahgi

Galley Rch

Ulamona

2000199619741969

Source NFS Annual Reports 1969,1974, National Forest Board reports 1996, 2000. No new plantings in 2001.

PNG PLANTATION ESTATE TOTAL Ha’s AT END OF YEAR

0

10000

20000

30000

40000

50000

60000

70000

1969 1974 1996 2000

Ha's

1. Reliable figures are unavailable for areas established by private smallholders, mainly in East New Britain, for Balsawood production. Estimated area ranges up to 400 hectares. Charts do not include Balsa plantation figures.

PLANTATION DEVELOPMENT BY STATE/PRIVATE SECTOR AGENCIES

0%

20%

40%

60%

80%

100%

1969 1974 1996 2000

PrivateState

NEW PLANTATION AREAS DEVELOPED, Ha’s

-50000

500010000150002000025000300003500040000

To 1969 1970-74 1975-96 1997-2000

StatePrivate

PLANTATION RESOURCES BY SPECIES, END YR 2000, Ha’s

05000

10000150002000025000300003500040000

TeakPinus/Aurc.Rubberw'dHardwoods

Major hardwood species planted include E.sp, Saligna, Robusta, Deglupta & Grandis, A. Mangium, T. Brassii Minor hardwood plantings include Rosewood, Erima, Albizia F., Callophylum

COMMERCIAL GROSS WOOD VOLUMES AVAILABLE AT MATURITY M3’000 TOTAL VOLUME 15.2Million M3

0

2000

4000

6000

8000

10000

TeakPinus/Aurc.Rubberw'dHardwoods

Planting, thinning and felling cycles vary for different species and locations. Above estimates are based on average yields at maturity of 225M3/ha. Pinus and Rubberwood and 255M3/ha. for Teak and Hardwoods.

ANNUAL REVENUE FROM LOG EXPORTS K’million

PERCENTAGE SHARE OF ANNUAL REVENUE

0

100

200

300

400

500

600

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

KiExLa

05

10152025303540

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Export TaxLandowners

ALLOCATION OF FOB VALUE PER M3

INDICATORS OF CAPITAL INVESTMENT IN CURRENT OPERATIONS

Note above – total cost to operator is cost of production plus loss.

-50

0

50

100

150

200

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

FOB

US$

/M3 Los

InvCosLanExp

0

50

100

150

200

250

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Uni

t Sal

es

Heavy EquiLogging Tru

PNG EXPORTS BY COMMODITY ( Source BPNG Quarterly Bulletin, SGS and NFS reports )

PNG KINA / US $ AVERAGE EXCHANGE RATE

0

500

1000

1500

2000

2500

1997 1998 1999 2000 2001 2002

K'm

illio

n

00.10.20.30.40.50.60.70.8

1997 1998 1999 2000 2001 2002

PNG Kina