6 January 2015
The area planted to Indian sandalwood in the Northern Territory will soon increase by 399 hectares.
Tropical Forestry Services (TFS) has secured a $40 million deal with a US investor to extend its plantation development in the Douglas Daly region.
TFS already has 3,000 hectares planted under sandalwood in the Territory.
Spokesman Quentin Megson says water licences for irrigation have been approved and new planting will begin within months.
“One of our institutional investors has exercised two of its remaining options to plant a further 399 hectares on Midway Station,” he said.
The current plantation on the property is 515 hectares.
“The land is ready for planting and will be planted in the first half of 2015.”
The investors will be waiting a while to see any return on investment.
“Trees take about 15 years to get to maturity,” said Mr Megson.
Courtesy of ABC Rural