State forests to cater to pulp mill

State Forest Management Center (RMK) sent an inspiring message to the developers of a major pulp mill near Tartu in which it agrees to negotiate supply of timber necessary for the future mill.

“This major investment will not be possible if we cannot cover 50-60 percent of supply and sales beforehand,” said head of developer Est-For, Margus Kohava- writes

The intentions protocol concerns RMK supplying the mill with around 500,000 cubic meters of birch, spruce, and pine a year over a period of 15 years, starting in the summer of 2022.

It is but a small part of the 3.3 million cubic meters of timber needed to keep the mill running. Developers plan to source 2.2 million cubic meters of timber in Estonia and the rest from abroad, mainly Latvia.

“RMK offers Est-For no concessions as they will have to pay market price for the timber,” said chairman of the board of the state forest manager Aigar Kallas. “If a competitor offers us a better price, they will not get their timber.”

Current prices would put the volume of the transaction around €300 million, or sales of nearly €20 million a year. Pulpwood prices are expected to go up in the future that would give RMK more money for the same quantities.

The protocol prescribes the possibility of a contract similar to what RMK currently has with Estonian Cell, where it supplies one-third of its asp over 15 years. Kallas said that RMK wants to sign the intentions protocol as the planned mill would make it possible to add value to pulpwood in Estonia.

“RMK currently sells 86 percent of birch pulpwood, 55 percent of spruce pulpwood, and 61 percent of pine pulpwood out of Estonia. Keeping that wood in Estonia would benefit everyone. A long-term supply contract with a local industry would give forest owners better prices, a stable timber market, and fewer price fluctuations,” he said.

Should negotiations succeed, RMK will publish the 15-year sale notice of pulpwood in 2019.

The pulp mill plan is being opposed by the Estonian Renewable Energy Chamber that claims international agreements make it impossible to supply the major industry with Estonian timber.

Member of the board Rene Tammist finds that Estonia’s 12-15-million-cubic-meter prescribed cut is excessive.

Estonia is subject to the UN Durban climate accord in which Estonia’s annual prescribed cut cannot exceed an average of 9.7 million cubic meters in 2010-2020. That limit has already been exceeded. Quantities over the average prescribed cut are subject to CO2 quota purchases,” Tammist claimed.

Activists in Tartu collected nearly 1,500 signatures against Est-For’s project in January, calling into question whether a material-intensive and inevitably polluting company is the best fit for Tartu and Estonia.

Authors of the address and undersigned include Peeter Hõrak, Tiia Kõnnussaar, Asko Lõhmus, Ülo Mander, Raul Rosenvald, Virve Sõber, Kristjan Zobel, Asko Tamme, and Marju Unt.

Read more news of Tallinn on our site.
StateForestManagementCenter RMK Tartu
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
I recommend
No recommendations yet


Post your comment to communicate and discuss this article.

Chairman of the Estonian Chamber of Commerce and Industry and one of the owners of construction group Nordecon, Toomas Luman, finds that a prime ministerial candidate should first and foremost be able to answer the question of what will become of the demographic crisis in Estonia. The businessman sees controlled introduction of foreign labor as the solution. A digital construction cluster was created in Estonia a few years back to bring innovation to the s...
Last year saw 27,125 registered offenses, up 0.5 percent from the year before. Violent crime was up by 12 percent to 8,249 offenses. PHOTO: Dominic Lipinski / PA Wire / Press Association Images / Scanpix Growth was biggest for domestic violence – the police launched criminal proceedings in 3,607 cases that constitutes an increase of more than one-third – annual growth of 37 percent from 2,632 cases in 2017. At the same time, reports of domestic violence we...
TALLINN - Ahead of the withdrawal of the United Kingdom from the European Union, tens of thousands of British citizens have chosen the citizenship of some other country, but only one Brit has recently chosen an Estonian citizenship. Spokespeople for the Ministry of the Interior told BNS that only one British citizen submitted an application for Estonian citizenship last year and the applicant was also granted the citizenship. Before that, no Brits had soug...
TALLINN - Experts from Finland, Denmark, Norway and the Netherlands highlighted the importance of decentralization and granting local governments greater decision-making powers at a conference titled "Strong local government -- strong state?" in Tallinn on Wednesday.  All Nordic countries have chosen a model granting local governments significant decision-making powers, thus the central government does not prescribe how local governments are to fulfill the...
The language learning application Drops by game developer Planb Labs, established in Estonia by Hungarian founders, was named Google Play's best app of 2018. With the number of downloads surpassing 10 million, Drops was named Google's app of the year as the revenue of Planb Labs, a company registered in Estonia, increased fivefold, CNBC said. The developer's revenue grew from €335,000 in 2017 to €1.7 million in 2018. The company's shareholders include Hung...
TALLINN - The Estonian Health Board has banned the distribution of chlorine dioxide, also marketed as the Miracle Mineral Supplement (MMS), the A-component of an unused product, meaning the sodium chlorite solution, must be taken to a hazardous waste collection facility. Ester Opik, head of the Health Board's North regional department, said that the banning of the distribution of the product was caused by the fact that MMS, distributed as a cosmetics produ...
Nature cannot abide a vacancy, as the saying goes. If just one year ago, Estonia was battling the sale of MMS and the practice of giving it to children, a new “miracle cure” called Advanced TRS has appeared on the market now. Even though the make-up of the substance is different, the promise to cure autism and cleanse the body of heavy metals, which kind of extreme detox is accompanied by severe side-effects, sounds all too familiar. TRS is recommended to...
Allied NATO battalions will soon mark two years serving in the Baltics. They have worked better than expected but would need prepositioned heavy weaponry and a functional contingency plan in case of a crisis, a report by the International Center for Defense and Security (ICDS) finds. “We do not know how Russia would have acted had we not welcomed allies in Estonia, Latvia, Lithuania and Poland in 2017. I’m afraid they would have tested our resolve,” one of...
The time of filing income tax returns is nearly upon us. The new income tax system, in effect since last year, will obligate many women who went on maternity leave toward the end of the year to make additional income tax payments, while those who give birth in the middle or at the beginning of the year have no such obligation. What this means is that some women will owe the state simply for giving birth “at the wrong time”. Laura Roop, who went on maternit...