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en/report-raises-concern-about-increasing-investment-in-environmentally-harmful-pulp-mills-in-indonesia-uruguay-brazil-china-baltic-states#c33660

[PDF] Investors Risk Losing Billions by Misjudging Costs, Environmental Impact of Emerging-Market Pulp Projects

Author: Center for International Forestry Research (CIFOR), Published on: 11 May 2006

False assumptions about the origins and the cost of wood used in emerging market pulp mills has led international investors to channel tens of billions of dollars worldwide into financially risky and environmentally destructive ventures, according to an expert analysis of 67 pulp mill projects...two companies in Indonesia, Asia Pulp & Paper (APP) [part of Sinar Mas] and Asia Pacific Resources International Ltd. (APRIL) are clear instances in which financial institutions failed to conduct proper due diligence on fiber supply....Ongoing efforts by Singapore-based United Fiber System to purchase and expand the PT Kiani Kertas pulp mill could place similar pressures on remaining natural forests in Indonesian Borneo. Merrill Lynch, ANZ Bank, and Cornell Capital are now working with UFS to secure financing for the deal...On the positive side...Dutch banks ABN AMRO and Rabobank agreed not to finance the clearing of primary forest or the purchase of illegally harvested timber. [also refers to Botnia, Sino-Forest. Clarification on CIFOR website says: "CIFOR has no reason to believe that Sino-Forest ever overstated its plantation holdings by providing false information about the extent of those holdings, and we deeply regret any problems that misunderstandings on this issue may have caused."]

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Related companies: ABN Amro ANZ Bank Asia Pacific Resources Asia Pulp & Paper (part of Sinar Mas) Merrill Lynch (part of Bank of America) Metsä Fibre Oy (formerly Metsä-Botnia) Rabobank Sinar Mas Group