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July, 2003

GeoAustral

Boise Cascade suffers new defeat in Chile

Boise Cascade Corporation has suffered a new blow against its attempt to develop the biggest timber project in the history of the destruction of Chilean temperate rainforests.

The project Astillas Cascada Chile (Chile Cascade Chips) is the result of a joint venture between Boise Cascade Corporation and Maderas Cóndor, S.A. Its objective was the creation of the biggest chip plant and manufacture of synthetic wood board (Over Strand Board) in the world, a 200 million dollar investment. To carry out this idea, and to gain access to the most important temperate rainforests in the world, Boise Cascade Corporation engaged in some of the worst influence trafficking and corrupt politics in Chile, obtaining environmental permits, legal authorization to operate as well as acquiring the property necessary to set up the plant in the Ilque area, 16 miles south of the city of Puerto Montt.

One of the most important properties, the heart of the project, belonged to the government (public lands) and was ceded by the Chilean government in a questionable direct lease transaction in 1998. But after 5 years of renting this public land, Lakes Region's Ministry of National Assets terminated the contract as of June 1st, not having received from Boise Cascade Corporation any appeal or reconsideration in the preceding weeks. Since July 2003, the property has officially been returned to the national heritage of all Chileans. Boise Cascade's loss of this valuable property is in addition to a 200,000 dollar fine for destroying archeological sites and the revocation of permits to construct the port for shipping chips. These events signal the slow death sentence of Boise Cascade in Chile, but companies such as Louisiana Pacific, Simpson Timber Company, Rayonier and others are still in operation.

For further information, contact:

GeoAustral
Forest & Community
geoaustral@telsur.cl

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