The final Lease Security Bonus Payment (LSBP) for resource owners who continue to lease their land with Fiji Pine Group Limited was officially paid out to them yesterday.
Pine landowners received $6 million in bonus payments for their leased land with the company.
While officiating at the event at Drasa in Lautoka, the Minister for Fisheries and Forestry, Hon. Alitia Bainivalu, said the lease security bonus payment has acted as an annual dividend for landowners based on the industry's performance.
“Since its inception in 2013, the Lease Security Bonus Payout has amounted to a remarkable $42.5 million paid out to our Pine Landowners, with $6 million to be distributed this year. With the 2024 payout, we will reach $48.5 million, marking the 11th consecutive year that the Pine Group has paid dividends to landowners—a clear demonstration of our resilience and dedication,” Minister Bainivalu said.
“This payment is a testament to the value we place on our landowners and their integral role in our success,” she said.
The minister highlighted that as of the last quarter of 2023, new changes were implemented to the Board of Fiji Pine Limited.
She said the changes are designed to enhance their operations, drive, and innovation while maintaining their dedication to providing returns to our landowners.
Beginning in 2025, Minister Bainivalu said the company will transition to distributing dividends accurately to its stakeholders, specifically the landowners, based on the industry's performance.
“This change is part of our ongoing governance enhancements. The uniqueness of the pine industry and similar forestry ventures is often misunderstood.”
“Before making investments, investors seek three key things: expected returns, the certainty of those returns, and the timeframe for realising them. At Pine Group, we invest an average of $5 million each year into our forests, knowing that it takes 20 to 25 years to reap the rewards.”
She said the Pine Industry model has demonstrated its success, which is built on strong collaboration with resource owners.