Jun 05, 2008. /Lesprom.com/. MagForestry Inc. announced the successful commissioning of its $25 million eucalyptus wood-chipping plant in Pointe-Noire, Republic of Congo. The plant will initially operate at a rate of 500,000 tonnes per year on a one shift per-day basis. The de-barked eucalyptus logs will be provided in 6 meter lengths from the forestry operations of Eucalyptus Fibre Congo SA (EFC) which is owned 100% by MagForestry. In addition MagForestry announced a second wood-chip sales agreement to a major European pulp and paper producer. This new agreement calls for the delivery of an aggregate of 140,000 tonnes of wood chips over the next 24 months on an FOB basis. The purchaser has an option to extend the contract for an additional two years at prices to be negotiated. This brings the total contracted sales volume of wood-chips to 400,000 tpy. Shipping of chips is expected to start in the 3Q 2008. Eucalyptus Fibre Congo is an established renewable forestry operation previously owned and operated by a division of Shell Oil International (Shell Renewables). The operations of EFC are based on the planting and harvesting of fast-growing clones of eucalyptus trees which reach 22 to 26 meters (70 to 85 feet) in seven years at which point they are harvested and the area replanted.