Aug 26, 2008. /Lesprom.com/. MagForestry Inc., a division of MagIndustries Corp. announced the successful operation of its recently commissioned wood chip plant located in the port of Pointe-Noire, Republic of Congo. Production has achieved a target rate of about 2 thousand tonnes of eucalyptus chips per day with total production to date of approximately 70 thousand tonnes. The annual production target is 500 thousand tonnes of wood chips. De-barked eucalyptus logs are provided to the chip mill in 6 metre lengths from the forestry operations of Eucalyptus Fibre Congo SA (EFC) which is 100% owned by MagForestry. In addition, MagForestry announced the successful delivery of its first FOB shipment of wood chips to a contract customer in Europe. The approximately 30 thousand tonne shipment was successfully unloaded and payment received by MagForestry. A second 30 thousand tonne ship is currently being loaded for delivery to a second customer in Europe on a delivered basis using a purpose-built Mitsiu ship, which has been contracted by MagForestry. Total contracted sales to large European pulp and paper customers are for 400 thousand tonnes annually with additional volumes planned for the spot market. EFC is an established sustainable-renewable forestry operation based on the planting and harvesting of fast-growing clones of eucalyptus trees which reach 22 to 26 meters in 7 years, at which point they are harvested and the area replanted. EFC shipped about 200 thousand tonnes of round logs to European customers in 2007 for proceeds of some $19 million. EFC has continued to ship logs through the first six months of 2008 after which the bulk of sales will be in wood-chips. Forestry operations continue to be streamlined through the acquisition of new equipment, ongoing training programs and competitive contract harvesting practices.