An investment fund that focuses on the forestry sector yesterday announced the acquisition of rights for 6,100 acres of Big Island timber for $6.1 million.

Timber rights for the land, which is in Pahala, were sold by Hancock Natural Resource Group to Cambium Global Timberland Ltd. Kamehameha Schools owns the land, which includes a 3,700-acre timber plantation and 2,400 acres of native forests.

Cambium also announced a long-term agreement to provide non-native timber to Tradewinds Forest Products LLC, which plans to build a $50 million veneer mill and electricity plant in 'O'okala.

Under the agreement, Cambium becomes Tradewinds' first major private supplier, said Tradewinds partner Don Bryan. Tradewinds already owns rights to harvest 8,000 acres of eucalyptus and maple in the state's Waiakea Timber Management Area, which is composed of three Big Island forest reserves.

Tradewinds, which has suffered financial setbacks that caused substantial delays, now hopes to begin construction later this year. The plant would then open about 17 months later, creating about 150 jobs, Bryan said.

"I think we're in good shape," he said. "I don't foresee financing as an issue going forward."

The state has thousands of acres of state-owned and private land with ready-to-harvest hardwood trees that were planted over several decades. Timber officials hope the wood will be used in veneer, lumber, flooring and other high-value products. If successful, a local timber industry could diversify Hawai'i's economy, create jobs, relieve the need to import lumber and provide a source for renewable energy.

Cambium Global is an investment fund managed by Dallas-based Cogent Partners LP.

"They have got a pretty good reputation as far as being able to come in and balance conservation and wise management of timber resources," said Paul Conry, head of the state Department of Land and Natural Resources' Division of Forestry and Wild-life.

Overal,l the state Department of Land and Natural Resources manages about 20,000 acres of timber statewide, which makes up the bulk of state-owned timber inventory.

Following the sale, Hancock Timber Resource Group still owns rights to other non-native timber on former Hamakua Sugar land leased from the Kamehameha Schools.

Reach Sean Hao at shao@honoluluadvertiser.com.