The preliminary draft Forestry Law that is being put to the consideration of national forestry operators suggests the extinction of simple licenses and, in their place, foresees the creation of Small Concessions, which will be licensed exclusively for national citizens, with a maximum area of 20 thousand hectares and with the requirement of exploration through a Management Plan..
In the proposal made by the National Forestry Department, it is stated that the Small Concessions should be awarded through public tender and that it will be the State's responsibility, through the related institutions, to organize the forest inventory and strategic management plan to hand over to the winner who should be required to develop an operational plan.
Also in the proposal of the new Forestry Law it is foreseen that Large Concessions can be held by national capital companies, with a minimum of 25% of participation to manage areas larger than 20 thousand hectares and with the duty of processing
"The Large Concessions must be established through a public tender held centrally and both these and the small ones are not allowed to export Madeira logs," the document states.