Environmentalists in Papua New Guinea have raised concerns about foreign companies investing in controversial land leases, reports ABC Radio.



In the latest investment, Hong Kong logging firm Pacific Plywood has joined forces with China's largest state owned timber company, Longjiang Forest Industry Group.



The investors plan to develop a 628 square kilometre lease in the East Sepik Province. 

The companies say the region has more than 2.5 million cubic metres of timber. 



But Eco-Forestry Forum Chairman Ken Mondiai told Radio Australia's Pacific Beat the country's Special Agricultural and Business Lease (SABL) should not be granted to timber companies.



"What we are seeing here is a fast and quick and dirty way of getting access to timber," Mr Mondiai said.



The plan coincides with an inquiry currently investigating the handlings of SABL agreements.



"A lot of areas that have been set up as SABLs are not done properly.

 So we are hoping that the Government has set up the Commission of Inquiry, which has so far identified the processes in which companies have obtained SABL licences have been fraudulently obtained without the consent of the local landowners".