Timberwolf Tropical Hardwoods LLC 1
Timberwolf Tropical Hardwoods LLC The Company: Timberwolf Tropical Hardwoods LLC ( Timberwolf or the Company ) is a privately-held U.S. company engaged in the purchase and import of sustainably harvested West African hardwoods, and in the manufacture and distribution of West African tropical hardwood lumber. The Project: Belli Initial forest concessions total 301,000 hectares in northern Gabon. World-class processing facilities with the capacity to process approximately 150,000 cubic meters of logs, and to produce approximately 105,000 cubic meters (44 million board feet) sawn hardwood lumber, annually on a sustainable basis. Production will support the domestic market and produce substantial volumes of high-value lumber for international markets Timberwolf will pursue third-party certification of its forest concessions and its endto-end operations at the earliest possible date. 2
Forest Oyem Transportation GSEZ Sustainable Forest Management Forestry Primary Sawmill Biomass Power Plant Secondary Processing Admin. Center
Timberwolf Tropical Hardwoods LLC 301,000 hectares of pristine equatorial forest in northern Gabon. The Timberwolf concessions constitute a protective corridor between Gabon s Minkebe National Park and the neighboring country of Cameroon, Timberwolf will work closely with ANPN, the US Fish and Wildlife Service, and the Gabonese government, to protect the largest surviving population of critically endangered African Forest Elephants The Timberwolf Project will help ANPN achieve its high-priority goal to establish sustainable light economic activity in the buffer zones of the national parks, in order to create a positive presence in these underpopulated areas 4
Principal Objectives Develop the most efficient hardwood sawmill in equatorial Africa Play a meaningful role in the sustainable diversification and development of the economy of the Republic of Gabon Establish a global model of environmental sustainability Develop an FSC-certifiable process from forest to market Set the global standard for product quality and establish a widely respected Gabonese brand Merit recognition as a model corporate citizen of Gabon Achieve attractive financial returns for investors Padouk 5
Project Advantages Long history of political stability Sustainable diversification of the Gabonese economy is a national priority Strong support of Gabonese Government, ANPN and key conservation NGOs Okan Compelling first-mover business opportunity Spectacular timber resource encompasses over 300,000 hectares of pristine equatorial hardwood forest Ministry of Waters and Forests will assist Timberwolf in identifying additional concessions, as necessary to support the Project Outstanding hardwood sawmill design team Participation in Gabon Special Economic Zone ( GSEZ ) Global demand for high-quality African hardwood lumber is very strong The world s largest distributor of African hardwoods has committed to manage the entire export production of the Sawmill Timberwolf is poised to enter the US wood products market as the first US-owned producer and supplier of certified sustainable hardwood lumber and value-added wood products from equatorial Africa 6
Benefits for the Republic of Gabon Hundreds of new jobs in Gabon, in engineering, construction, logging, sawmill operations, and transportation, among many others. 3-4 megawatt biomass-fired power plant with as much as 2 MW of excess power for the grid in a critically underserved region of Gabon Essential feedstock to support the development of a growing value-added wood products industry in Gabon Substantial volume of premium, high value export product, and will contribute in a meaningful way to the sustainable diversification of the Gabonese economy Robust budget allocation for community development initiatives, which will include schools, community centers and medical clinics, among other important local services Close cooperation with ANPN to develop and implement conservation programs that will help the government to protect the African Forest Elephant and other endangered species from poachers, and generally curb the bushmeat trade Kevazinga 7
Milestones Timberwolf has: Built a strong team and business ecosystem in Gabon Entered into a Master Services Agreement with GSEZ Procured a spectacular timber resource Engaged TEREA to conduct environmental impact studies Received Provisional Logging Permits Begun preparation of a 5-Phase timber inventory assessment and Forest Management Plan Established relationships with leading Gabon-based logging and logistics contractors Completed design of a world class hardwood sawmill Obtained legislative validation of ZERP (Zones Economiques à Régime Privilégié) Administration tax benefit status; Established a global marketing agreement with the world s leading distributor of African hardwood lumber Tali 8
Challenges In spite of significant enthusiasm within the US State Department, the Gabonese Government and the environmental community, it has taken the Timberwolf team years to develop the project. Notwithstanding a wealthy, stable country and the prospect of attractive riskadjusted investor returns, US-based equity investors are hesitant to support the project. The combination of high projected financial returns and near cosmic significance from the perspectives of sustainability and wildlife conservation had not been sufficiently compelling to attract the backbone financial supporters of the US conservation community. Even after the President articulated a national agenda of infrastructure development and economic diversification, the Gabonese government has struggled to coordinate the resources that will be required to give comfort to US investors. With access to government capital, greater tolerance for risk, and significantly fewer inhibitions, Asian investors are very well positioned to outbid US investors for the most attractive resources. 9