Sappi Limited · JSE:SAP

Sappi — Corporate Update (September 2005)

31 slides from Sappi's corporate update, Sep 20, 2005

  1. Slide 1: Sappi Saiccor Project Amakhulu

    Sappi Saiccor Project Amakhulu WSP ENVIRONMENTAL CONSULTANTS Vicki King Public Open Day – 20 September 2005

  2. Slide 2: Agenda

    Agenda „ Welcome – Shirleigh Strydom „ Introduction and Process – Vicki King „ Project Description – Craig Daniel „ Environmental issues – Vicki King „ Issues

  3. Slide 3: Sappi Project Team

    Sappi Project Team „ Gary Bowles – Sappi Saiccor General Manager „ Craig Daniel – Sappi Saiccor Environmental Dept

  4. Slide 4: Environmental Project Team

    Environmental Project Team „ Shirleigh Strydom – Independent facilitator „ Vicki King – EIA process project manager „ Rebecca Bowd – EIA process „ Thomasina Mofokeng – Translation „ Arend Hoogervorst – Environmental Review „ Carl Haycock – Environmental technical review

  5. Slide 5: Introduction

    Introduction „ The global demand for speciality cellulose is increasing steadily. „ This demand will place increasing pressure on Saiccor to supply its existing customer base, and has resulted in the announcement of several competitor capacity expansions around the world. „ In order to maintain its

  6. Slide 6: Legislative Framework

    Legislative Framework „ Environmental Conservation Act (GNR 1182 and GNR 1183 - 1997) – The construction, erection and upgrading of –with regard to any substance which is dangerous or hazardous and is controlled by national legislation - – (ii) manufacturing, storage, handling, treatment or processi

  7. Slide 7: Environmental Controls

    Environmental Controls „ ISO 14001 „ South African Legislation „ SHEQ Policies „ Internationally accepted norms and standards (including shareholders policies and guidelines) „ World Bank Environment, Health and Safety guidelines „ Relevant International Agreements

  8. Slide 8: Authority & Stakeholder Engagement

    Authority & Stakeholder Engagement Already undertaken: „ Submission of Application and plan of study to DAEA, „ Saiccor have held meetings with CAER and LAF to introduce the proposed project „ Public Notice in Mercury, South Coast Mail, South Coast Sun, Ilanga and Sunday Tribune and Sunday Times „ D

  9. Slide 9: Authority & Stakeholder Engagement

    Authority & Stakeholder Engagement Undertaken for this Open Meeting „ Public Notice in Mercury, Mid South Coast Mail, South Coast Sun, Rising Sun, Isolezwe, Sunday Tribune and Sunday Times „ Knock and drop of 6000 background documents to Umkomaas, Widenham, Cragieburn, Roseneath, Drift and Magabeni

  10. Slide 10: Authority & Stakeholder Engagement

    Authority & Stakeholder Engagement Undertaken for this Open Meeting „ Personal communication undertaken with the 7 local Amakhosi and principals of the 13 schools in the area „ All listed I&APs (over 200) received copies of the invitation to this meeting, copies of the minutes of the previous meetin

  11. Slide 11: Authority & Stakeholder Engagement

    Authority & Stakeholder Engagement Still to come: „ Formulation of responses „ Compilation of Scoping study „ Public review of Scoping study „ Public meeting to present scoping report „ Submission to DAEA (beginning December) „ Decision from DAEA on the Way Forward „ EIA

  12. Slide 12: Saiccor

    Saiccor ƒ Saiccor set to expand in response to market demand ƒ We envisage: ƒ Increased production ƒ Improved environmental impact ƒ Increased employment opportunities (+- 100 perm) ƒ Improved regional economic benefits

  13. Slide 13: Saiccor Mill Expansion Opportunity

    Saiccor Saiccor Mill Expansion Opportunity ƒExpand capacity by +/- 200 000 ADMT/ annum ƒAnticipated commissioning 2nd half 2007 ƒName - Project Amakhulu ƒEIA and ROD sets approval timeframe ƒAF Consulting / Murray Roberts appointed as Technical / Process / Design consultants

  14. Slide 14: Current Process Overview

    Current Process Overview Wood Logs / Chipping Exported to: 5 600 t/day Asia, 90% Eucalyptus (Gum) Europe 10% Acacia (Wattle) and the America’s Batch Cooking Bleaching Oxygen (O) 60% Calcium Chlorine Dioxide (D1) and Caustic Soda (E) 40% Magnesium Chlorine Dioxide (D2) Washing /Screening Drying Hypoc

  15. Slide 15: Current Configuration

    Current Configuration 15 Ca B1 Cont 2 Digs Effluent B2 Cont 3 LTSA Cooking Bleaching Drying 10 Mg B3 Cont 4 Digs MgO 1

  16. Slide 16: Expanded to Amakhulu

    Expanded to Amakhulu 11Ca B1 Cont 2 Digs Effluent B2 Cont 3 LTSA 12 Mg B4 Cont 5 Digs MgO 2 10 Mg Digs B3 Cont 4 MgO 1

  17. Slide 17: Chipping and Log Handling

    Chipping and Log Handling ƒ Upgrade existing chippers or 1 new line/ 1 shut ƒ Existing chip piles to be retained ƒ New weighbridge ƒ New log storage in cane field area ƒ Additional rail line spurs ƒ Additional internal access roads

  18. Slide 18: Cooking Process

    Cooking Process ƒ Estimate 33 cooking vessels in total (8 new cooking, others converted plus spares) ƒ Reduction in the production of non recovered Calcium cooking liquor (15 to 11 vessels) ƒ New digester cooking vessels will be Magnesium based- closed loop recovery process ƒ Significant positive im

  19. Slide 19: Pulp Bleaching

    Pulp Bleaching ƒ New bleach plant (Bleach 4) ƒ As per existing bleach sequences ƒ Options to stop Bleach 1 being investigated ƒ Latest washing technology , improved efficiency and recovery with modern control systems will enable water consumption improvements

  20. Slide 20: Pulp Drying

    Pulp Drying ƒ New Continua 5 (pulp drying machine) ƒ Machine to be situated in place of Continua 1 ƒ Option to stop Continua 2 under investigation ƒ High capacity modern and efficient machine

  21. Slide 21: MgO Recovery and Services

    MgO Recovery and Services ƒ New Magnesium recovery boiler and process plant and new stack ƒ Upgrade ClO2 plant and storage facilities ƒ Reduce demand from existing 6 coal boilers ƒ Reduction in Coal usage and emissions ƒ Renewable energy – liquor recovery (Mg process) ƒ New Workshop / Offices / Stor

  22. Slide 22: Project Summary

    Project Summary ƒ Established modern technology ƒ Positive social impacts - increased employment (construction and permanent – design dependant) ƒ Reduced emissions – S02/ odour / particulates ƒ Self Sufficient Power (New turbine/generator) ƒ No increase in water usage / Improvement on t/t basis ƒ I

  23. Slide 23: Project Alternatives

    Project Alternatives Several alternatives were considered, these include: „ Expansion of the Tugela Mill „ New mill in South America „ Conversion of the Sappi Cloquet Mill (USA) to manufacture cellulose „ Conversion of other mills to produce cellulose „ Various size expansions at the Saiccor Mill (t

  24. Slide 24: Environmental Issues

    Environmental Issues „ Air Quality – – Coal demand will be reduced on the site and therefore sulphur dioxide emissions will be reduced. – The plant changes will reduce fugitive emissions (recovery and modernisation of some of the equipment etc) – Monitoring is currently undertaken and this informati

  25. Slide 25: Environmental Issues

    Environmental Issues „ Noise – – There will be additional noise from the new plant on site, but that is unlikely to be heard beyond the site boundary – There will be an increase in road traffic and this will affect surrounding land users – Further investigations will be undertaken if this is needed

  26. Slide 26: Environmental Issues

    Environmental Issues „ Health – – Air quality will improve as a result of the project „ Traffic – – Road Traffic will increase due to: – Increase in Timber required – Additional product for export – This will be investigated as part of the scoping process

  27. Slide 27: Environmental Issues

    Environmental Issues „ Effluent – – The amount of wastewater from the site will not increase as a result of the project – The quality of the wastewater will improve as COD, TDS, Lignin and colour will be reduced due to the reduction in the Calcium production line cooking „ Water supply – The expansi

  28. Slide 28: Environmental Issues

    Environmental Issues „ Timber Supply – The additional timber required will be sourced from existing plantations and from Sappi’s out-grower scheme. „ Job creation – Between 100 and 150 new permanent jobs will potentially be created by the expansion (Subject to final design and layouts) – The increas

  29. Slide 29: Environmental Issues

    Environmental Issues „ Waste disposal – More solid wastes will be produced (such as bark, wood chips and filter cake – all organic and recycled and metals which are also recycled), but Best Available Techniques will be used to recover, recycle and re-use materials were possible. – Less ash will be p

  30. Slide 30: Interested party involvement

    Interested party involvement „ Sign the attendance register „ Take a background information document, fill out comment form and return to WSP in the next 2 weeks „ Attend the meeting where the Scoping report is presented „ Comment on the draft scoping report when it is issued (end October) „ Talk to

  31. Slide 31: Thank You

    THANK YOU oo S08 Se j»wsP

Sappi — Corporate Update (September 2005) on 6ix