m2m takes its chances in the forests of PNG ILYA GRIDNEFF March 4, 2010 http://www.smh.com.au/business/m2m-takes-its-chances-in-the-forests-of-png-20100303-piyw.html
THE ASX-listed m2m Corporation has dropped a $10 million merger with Carbon Planet and gone into business with a man accused by Papua New Guinea's Forest Minister of running a carbon ''cargo cult'' in the country.
Kirk Roberts, a former disqualified Australian horse trainer and Philippine cock-fighting syndicate operator, denies the allegations. His company Nupan is now working for technology investment group m2m to develop carbon trading projects in PNG.
At a volatile meeting between the PNG government and forest landowners on Monday Mr Roberts, who is also under investigation by the PNG's Forest Authority (FA), was accused by Forest Minister Belden Namah of promoting a carbon ''cargo cult''.
But Mr Roberts, who received $1.1 million from Carbon Planet in 2008, shrugs off criticism and is adamant he represents numerous PNG landowner groups who want lucrative carbon projects developed under a voluntary system.
PNG authorities are worried Mr Roberts may be undermining existing forestry laws, and exploiting PNG's vacuum of national legislation and policy covering carbon trading where companies can offset emissions by supporting forest growth.
East Pangia, in PNG's rugged Southern Highlands region, is the latest carbon battle ground as Mr Roberts promises what many PNG villagers call ''sky money'' because he appears to be selling air.
At Monday's meeting with Pangia landowner groups, some argued for Nupan's carbon trading, some argued for logging, and a raft of government officials and ministers criticised Mr Roberts's carbon scheme.
The managing director of PNG's FA, Kanawi Pouru, last month took out a newspaper advertisement outlining an investigation into Mr Roberts and reminding landowners that Pangia had been allocated for logging since 2002. In July 2009 m2m announced a merger as a way for a back-door listing for Carbon Planet but the deal fell through in January this year, a month after m2m announced that Mr Roberts's Nupan would become their ''rainforest developer''. ''It is very important for shareholders to note m2m's existing carbon credit business will not be affected by the Carbon Planet transaction not proceeding,'' an m2m statement said.
Nupan will generate about 10 million scientifically approved and verified carbon credits from 15 forestry projects in PNG in the first half of 2010, m2m said.
''Completion will allow m2m to recognise about $1 million in revenue in the first quarter of next year [2010]. Further trading from the 15 projects is anticipated to deliver in excess of $4 million revenue by December 2010 and positive earnings,'' another statement said.
Ian Clarkson, the executive chairman of m2m, said he would call back with a response but did not. Paul Barker, the director of PNG's Institute of National Affairs, said PNG did not need any more carbon trade scandals.
''One would like options for the landowners other than logging operations, which have ruled the roost for years,'' he said.
AAP
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