PROJECT

Projects

Environmental & Social Review Summary

Project Number

8571

Company Name

Unicell Paper Mills (S.A.) (PTY) Ltd

Date ESRS Disclosed

Feb 5, 2010

Country

South Africa

Region

Africa

Last Updated Date

Dec 31, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Dec 11, 1997
Signed : Jul 22, 1998
Invested : Aug 19, 1998

Sector

Paper Tissue

Industry

Agribusiness and Forestry

Department

Regional Industry - MAS Africa

Project Description

- 2 -

International Finance Corporation
A Member of the World Bank Group
International Finance Corporation
A Member of the World Bank Group
Environmental Review Summary (ERS)

Project Name SOUTH AFRICA-Unicell Paper Mills (Pty) Ltd.

Region Sub-Saharan Africa

Sector Timber, Pulp and Paper

Project No. 008571

1. This project involves the Sharma Group’s construction and operation of an integrated paper mill on a 10 ha site in the Greater Germiston area of Gauteng Province of South Africa. The plant will rely exclusively on waste paper as a source of raw materials, and will employ state-of-the-art technology, including chlorine-free bleaching, and new machinery to produce high-quality pulp and tissue products. The facility comprises a 120 metric tons per day waste paper pulp mill, a downstream, 60 metric tons per day capacity soft tissue paper mill, and a tissue converting operation with warehousing and dispatch facilities. Process steam will be provided by an on-site coal-fired boiler. Other utility needs (water supply, electricity, communications, natural gas) will be provided through connection to the existing local infrastructure. Fifty percent of production from the pulp mill will be fed to the downstream tissue facility; the remaining deinked, treated, and bleached pulp will be sold and transported to the sponsor’s existing paper mill in Swaziland. Construction will begin in early 1998 with operations commencing in 1999. The project will provide employment for over 300 people.

2. This is a Category B project according to IFC’s environmental review procedure because a limited number of specific environmental impacts may result from this project. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor by IFC’s Technical and Environmental Department staff. The following potential environmental, safety and health impacts of the project were analyzed:

· site history and land-use;
· air emissions;
· effluent treatment and discharge;
· solid waste and sludge management and disposal;
· hazardous materials storage and handling;
· ambient noise;
· workplace health and safety (including employee exposure to chemicals, noise, and dust).

The sponsor has presented plans to address these issues and demonstrate that the proposed project will comply with the Government of South Africa and Greater Germiston laws and regulations and applicable World Bank requirements. The information about how these potential impacts are addressed by Unicell and the Sharma Group is summarized in the paragraphs that follow.

3. The currently undeveloped site is located in an industrial area in Germiston. There are no existing residences on the site; nor are there any within the immediate vicinity. The site is surrounded by other industrial facilities. The sponsor has inspected the site and confirms that there is no soil or groundwater contamination from past site uses.

4. The only significant air emissions generated are those from the coal-fired boiler; there are no significant emissions generated by the waste paper pulping operations. Boiler emissions of particulates, sulfur oxides, and nitrogen oxides will be controlled through the use of low-sulfur coal in combination with low NOx boiler combustion processes and appropriate pollution control devices to achieve exhaust gas concentrations of 50 mg/Nm3 of particulates, 650 mg/Nm3 of NO2 and 0.2 tons of SO2 per day per MWe of boiler energy capacity. Prior to disbursement, the sponsor will provide written certification from the equipment manufacturer that the selected equipment will meet these emission limits.

5. Much of the water used in the pulping and papermaking process is recycled back to production after chemical treatment and clarification. That which is not recycled will be discharged to the municipal sewerage system. Effluents will meet Germiston sewer discharge standards (pH, COD, suspended solids, heavy metals, etc.), and the sponsor has confirmed with the Germiston Council Authority that the municipal wastewater treatment facility to which the Unicell plant will be connected has adequate capacity to treat Unicell’s wastewaters.

6. The major solid wastes generated will be the material rejected from the raw waste paper cleaning process: a moist mixture of fine cellulose fiber, minerals, ink, plastics, and other relatively non-hazardous material. Unicell will dispose this material off-site in an approved landfill via the services of a private contractor (Westec Ltd.). Wastewater treatment sludges and boiler slag and ash will also be disposed along with these materials.

7. Chemicals used in the production process include caustic soda, hydrogen peroxide, and sodium hydrosulfite. These will be stored in clearly labeled containers and vessels, and will be designed with secondary containment to prevent spills.

8. Appropriate noise reduction measures, such as equipment silencers, building insulation, and acoustic screening, will be provided to ensure that ambient noise levels at the site boundary will be maintained at less than 45 dBa. The sponsor will carry out regular monitoring at appropriate points on the site boundary to ensure that this limit is met.

9. The operation will employ recognized, adequate worker health and safety practices to mitigate potential problems caused by noise, moving machinery, chemical handling and storage, dust, and waste paper fires. Adequate fire protection and emergency response features and procedures will be provided. Appropriate health and safety training programs will be established.

10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project will meet World Bank environmental, health and safety policies and guidelines and the Government of South Africa’s requirements.

11. IFC will monitor ongoing compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating monitoring reports submitted annually to IFC by Unicell and by conducting periodic site reviews during project supervision.


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10/22/97 2:42 PM

Environmental and Social Mitigation Measures

Broad Community Support