MONTE DOURADO, Brazil (Reuters) - Buzzing chain saws and heavy machinery hauling logs through the Amazon jungle look at first like reckless destruction. But a forestry project on the Jari River in northern Brazil is being hailed as a model for preserving the world's largest rain forest.

Evidence in January that the pace of Amazon deforestation has increased after falling for nearly three years renewed a fierce public debate over saving the forest. It also opened a rift in President Luiz Inacio Lula da Silva's government.

Loggers illegally clear vast swathes of forest for timber and farmland every year, wreaking environmental havoc while creating little long-term income.

But a handful of forest management projects have emerged as conservation models, extracting resources with little impact.

"Selling certified timber harvested in a sustainable way is the only solution for the Amazon," said Augusto Praxedes Neto, a manager at Brazilian pulp and paper company Grupo ORSA.

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