Sandalwood (Santalum spicatum) is a tree native to Western Australia. It is a rapidly depleting timber commodity with an ever-increasing global market.
Planting sandalwood provides environmental as well as economic benefits. Both sandalwood and host trees absorb carbon dioxide from the atmosphere. The removal of carbon from the atmosphere through the natural process of photosynthesis as the sandalwood grow will contribute to the reduction in greenhouse gases. The Australian Government is a signatory to the Kyoto Protocol and has committed to the introduction of a national carbon trading scheme. The Company has already commenced research and development of procedures that will allow it to participate in trading carbon credits which may arise from its activities.
Salinisation of land and water within the wheatbelt area of Western Australia is a significant environmental challenge that is being addressed in part by the establishment of sandalwood plantations. The interception of rainfall, which is taken up and used by the trees as they grow, reduces the amount of rainfall that makes its way into groundwater. This assists in minimising salinity as rising groundwater levels bring dissolved salts to the surface where they can make their way into waterways. While the overall scale of the salinity problem is very large, the strategic placement of sandalwood plantations within the landscape can contribute to better management of salinity.
Sandalwood is endemic to the South West of Western Australia and the plantations are established using local host species. The re-introduction of local species back into landscapes that were cleared for more traditional forms of agriculture is increasing biodiversity at a local scale. Sandalwood plantations are not a mono-culture and have a diversity of species within them. Previous projects have demonstrated an increase in local fauna species, particularly birds. The Company recognises the need to maintain and increase biodiversity wherever possible and does not clear native vegetation in the establishment of its plantations.
Sandalwood trees are root hemi-parasites and require host trees for healthy growth. The host trees provide extra water and nutrients to the sandalwood, delivered by a unique root connection called haustoria. The two trees form a symbiotic relationship throughout the life of the sandalwood tree. The best host species are the nitrogen fixing plants, especially the wattles (Acacias) which are also native to Western Australia.
Both private and public research is being undertaken by foresters and farmers to improve the propagation and production from sandalwood plantations, including improving oil yields and quality. This research is also investigating the environmental benefits of utilising endemic species that are better suited to local conditions and represent a more sustainable land-use than many forms of traditional agriculture.
In contrast to Western Australia, factors such as competition for land suitable for plantations, uncontrolled poaching, lack of technical expertise and unstable political structures are all major impediments to other countries establishing sandalwood plantations.