The sponsor has presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the environmental and social requirements - the host country laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow.
- Forest Resources.
The Nanning plant annually consumes some 290,000 m3 of wood, primarily purchased as logs from third-party growers, though some use is made of chips produced as sawmill waste.
Fenglin aims to reduce its dependence on third-party suppliers and in 1999 started the development of eucalyptus plantations, supported by an in-house seedling nursery. By the end of 2003, these plantations covered some 6,700 ha (100,000 mu), sites being 20 to 140 km from the factory, and expansion to three times this area by 2009 is planned. Harvesting will commence in 2006 and in subsequent years these plantations will meet around 40% of the company’s fiber need at both plants.
The Baise plant on completion will consume some 475,000 m3 of wood annually. In the short term, Fenglin plans to source wood from the Baise City’s existing plantations: these are over-mature multi-species plantations dating from the 1950s. Within Baise City, sustainable annual wood supply of 810,000 m3 from 1,275,000 ha is available. In the longer term, Fenglin will establish some 500,000 mu (33,333 ha) of eucalyptus plantation in five counties of Baise. This will be more than sufficient to meet the fiber need of the company.
Fenglin’s plantations are typically sited on hill-tops on land which was first planted to trees in the 1950s and 60s. These plantations complement other forms of agriculture practiced in the immediate areas, which typically are rice cultivation in valley bottoms, sugar and then fruit trees on the valley sides. The plantations are close to farming villages, which supply the necessary labor (up to 5,000 seasonal workers) for the plantations on a casual as-needed basis. These workers prepare sites, add fertilizer, plant, and weed on an established cycle. Typical earnings are 3,900 RMB per worker over a two-year period, which greatly supplements the worker’s income from farming.
All weeding is manual – no herbicides are used. The pesticide carbofuran can be used as necessary for termite control, and only when the termites threaten economic damage. The pesticide was not used in the lest three years by Fenglin. Carbofuran is a Class 1b (“highly hazardous”) pesticide according to the World Health Organization (WHO ) classification. All Fenglin’s users of this chemical wear masks, gloves, long-sleeved shirts and long trousers when using the chemical. They have been trained on its hazards, on the precautions required in safe storage, handling and use, as required by IFC’s guidelines on pesticide handling and application. Fenglin will institute health monitoring for pesticide users in accordance with IFC’s guideline on pesticide handling and application. Empty pesticide containers are punctured and buried after use.
Guangxi Province enjoys a warm, moist climate and consequently the plantations are high-yielding. There is significant natural and plantation forest in the province: the local government is aware of both the conservation and financial value of the forest. Much of the total forest is protected, in harvestable areas licenses are granted, and strictly enforced, with severe penalties for unauthorized harvesting. There is however no independent certification that these forests are managed in a sustainable manner.
Fenglin will seek to develop reliable supplies of wood chips from the extensive but individually small-scale sawmilling industry active in the Baise and Nanning areas. Additionally, Fenglin will obtain independent certification that it manages its own plantations in a sustainable manner, and will seek to source wood from third-party suppliers who similarly can demonstrate such certification.
- Environmental and Health and Safety Management
Fenglin to date has not given great attention to management of environmental or safety issues and few records describing either issue are kept. Housekeeping shortcomings such as lack of machine guarding, and dust accumulation causing a slipping and fire hazard were observed. Fenglin will undertake an occupational health and safety audit and will prepare an improvement plan. Environmental and health and safety management systems will be developed and respectively certified to ISO 14001 and OHSAS 18001 standards or equivalents.
- Fire Protection and Emergency Response
The manufacturing sites have a network of fire hoses/hydrants downstream from the board forming areas, and additionally quenching systems are fitted to exhaust ducts. There is an emergency response plan, and all employees are trained in the use of fire protection systems, and of appropriate response in the event of a fire.
- Emissions to air
The emissions to air of environmental concern are combustion products from process heaters.
At Nanning, process heat is derived from two coal and wood dust-fired steam boilers (which provide heat for the refiners, one chip dryer and MDF presses) and a coal-fired thermal fluid heater which heats a second dryer and one press. Exhaust gases from these fired heaters pass through wet scrubbers before discharge to atmosphere. Emissions of sulfur dioxide meet Chinese and IFC requirements; particulate emissions meet Chinese requirements but exceed IFC’s standard, while there are no data on NOx emissions. Fenglin will measure emissions of NOx and take action to reduce emissions if found necessary. Particulate removal systems will be added to the flues to reduce emissions to within IFC’s requirement.
At the existing Baise line, a coal and wood dust-fired hot gas generator provides some process steam for the refiner and heats thermal fluid which in turn heats the fiber dryer and MDF press. No data were available to describe emissions from this hot-gas generator, though it is equipped with a wet scrubber. Emissions of particulates, SO2 and NOx will be measured, and corrective action taken if necessary to reduce emissions to comply with Chinese and IFC requirements.
Process heating for the new Baise line will be provided by a wood-dust fired thermal fluid heater. The manufacturer’s specification indicates that emissions from the heater and the fiber dryer will be within Chinese and IFC requirements.
- Effluent treatment and disposal
No liquid effluent arises from Fenglin’s wood refiners – instead the water passes with fibers to the dryer and is evaporated. Otherwise a small volume of sanitary and process waste water passes through a sedimentation system, from which liquid effluent meets Chinese and IFC requirements. Solid waste arising from this system is landfilled.
- Resource consumption.
The Nanning plant does use sanding dust as boiler fuel, but also uses coal as boiler fuel. A review of the site showed a number of opportunities to reduce steam consumption which Fenglin will implement. Steam-turbine cogeneration and electricity saving opportunities are under review and will be implemented if cost-effective. Edge and end trimmings from the board produced at Nanning will be reduced, increasing the yield of finished product to fiber used.
The new project will be larger, and will adopt a continuous rather than batch press. This is state-of-the-art technology and once commissioned it is expected that energy efficiency and fiber yield will reach world class. The new project will derive its heat requirements exclusively from burning of sanding dust produced within its own processes.
