Jersey-based Cambium Global Timberland Ltd said it has acquired approximately 7,837 acres of bare land timber property to establish a eucalyptus plantation for conversion to charcoal for use by the pig iron industry in Brazil.
It paid £3.25 million and will require an additional £3.5 million to bring the investments into production.
The acquisition completes the Brazilian charcoal strategy that it announced in July 2008. Currently the company has purchased properties for the strategy totaling approximately £8.5 million in land purchases and an equivalent amount estimated for plantation development.
Eucalyptus is the wood of choice for timber substitution and the charcoal industry in Brazil and the oil of the trees contain makes the wood highly flammable.