PT HRB holds a forest concession right of 268,585 hectares in South Kalimantan, Indonesia, which entitles us to plant, maintain, process and market products extracted from the concession area.

To-date, approximately 80,000 hectares of the forest concession area has been planted with Acacia Mangium - a fast growing leguminous species which can be processed into market pulp of excellent quality for the production of tissue and printing and writing grade papers. Large areas of free land have been planted during the planting season and some areas with old Acacia Mangium trees have also been harvested.

PT HRB has also embarked on a three-pronged strategy to be an independent, self-sustaining business unit. Firstly, in addition to the planting activities within its concession, it has worked well with and will continue to co-operate with the local communities under its People's Forest Scheme ("Hutan Rakyat") to expand forest plantations outside its concession boundaries. Secondly, PT HRB has set up its first permanent nursery to produce its own high quality seeds as well as explore the suitability of planting other species of leguminous trees such as Eucalyptus Pellita, depending on the suitability of the soil conditions. Thirdly, PT HRB has embarked on Research and Development initiatives by employing advanced silvicultural methods and techniques to further increase the yield of its plantations. It has mechanized its pest and disease monitoring activities. This strategy has the aim of ensuring that we have a sustainable supply of high quality wood raw material to the planned pulp mill.