Toronto, Ontario, Canada, 26 August 2008 -- MagForestry Inc., a division of MagIndustries Corp. (MAA – TSX Venture Exchange) is pleased to announce the successful operation of its recently commissioned wood chip plant located in the port of Pointe-Noire, Republic of Congo. Production has achieved a target rate of about 2000 metric tons of eucalyptus chips per day, with total production to date of approximately 70,000 metric tons. The annual production target is 500,000 metric tons of wood chips. Debarked eucalyptus logs are provided to the chip mill in 6 meter lengths from the forestry operations of Eucalyptus Fibre Congo SA (EFC), which is 100% owned by MagForestry.
In addition, MagForestry is pleased to announce the successful delivery of its first shipment of wood chips to a contract customer in Europe. The approximately 30,000 metric ton shipment was successfully unloaded and payment received by MagForestry. A second 30,000-metric ton ship is being loaded for delivery to a second customer in Europe. Total contracted sales to large European pulp and paper customers are for 400,000 metric tons annually, with additional volumes planned for the spot market.
About Eucalyptus Fibre Congo
EFC is an established sustainable-renewable forestry operation based on the planting and harvesting of fast-growing clones of eucalyptus trees, which reach 22-26 meters (70-85 feet) in seven years, at which point they are harvested and the area replanted. EFC currently holds an exclusive concession agreement with the government of the Republic of Congo, which expires in 2076. The plantation concession covers 68,000 hectares, of which 42,000 hectares are currently planted, with the balance expected to be planted from EFC’s expanded tree nursery over the next 18 months.
EFC shipped about 200,000 metric tons of round logs to European customers in 2007, for proceeds of some USD 19 million. EFC has continued to ship logs through the first six months of 2008 after which the bulk of sales will be in wood chips. Forestry operations continue to be streamlined through the acquisition of new equipment, ongoing training programs, and competitive contract harvesting practices. EFC is now the largest private employer in the Republic of Congo.
About MagIndustries Corp.
MagIndustries Corp. is a Canadian company whose common shares are listed on the TSX-V Exchange and trades in Canadian currency under the symbol "MAA". The company has 197,514,016 shares outstanding on an undiluted basis. MagIndustries' wholly owned resource subsidiaries are operating and developing major industrial projects in the Republic of Congo (ROC) and the Democratic Republic of Congo (DRC).