Friday Offcuts – 30 September 2011
Click to Subscribe - It's FREE! Last week we ran a story on the potential for “mega fires” in Australia’s forests. Professor David Lindenmayer was suggesting that logging could increase the risk of catastrophic wildfires. After analysing the mountain ash forests of Victoria after the devastating 2009 Black Saturday bushfires, large areas of mountain ash forests had been logged for timber and pulpwood over the last century. This in turn he said had created areas dominated by young fire-prone trees which could lead to these “mega fires”.Understandably your response to the story has been swift – check out Letters to the Editor this week. You can check out the feedback directly and I've also attached the Institute of Foresters of Australia's press release –written with input from some of Australia's top fire scientists - in response to the article appearing in a number of major Australian papers recently. A bunch of good news this week - in addition to some of the sporting results that have come the Kiwi's way over the last seven days. One of New Zealand’s leading forest products companies, in fact one of the few remaining truly integrated forest products companies left, Pan Pac Forest Products Ltd announced this week (see lead story) an injection of NZ$70 million to their Whirinaki site. They’re converting part of their wood pulp operation from Thermo Mechanical Pulping to Bleached Chemi Thermo Mechanical Pulping. This is going to enable the company to add value to the local wood resource with a new high grade of wood pulp. Work has already commenced and is scheduled to be completed by April next year. In Australia, Gunns' AU$2.3 billion Tamar pulp mill project also cleared a regulatory hurdle this week. A decision by Tasmania's Environment Protection Authority confirmed that the company had "substantially commenced" the project as required by the 30 August deadline to avoid the lapsing of its environmental permit. This is going to provide clarity to the project, particularly for the company as it continues to woo potential project investors. Finally, to add to the saga of the Tasmanian forestry peace deal, the agreement hit yet another bump in the road this week (see story below). This time Tasmania's Upper House has declared the Government's going to face major problems (why aren't we surprised) when it seeks to pass legislation in support of the Federal-State plan.
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$70 million pulp upgrade underway in NZOn Wednesday during a visit to Pan Pac Forest Products Limited’s (Pan Pac) mill in Napier, Mr Kazuhisa Shinoda, President and Chief Executive Officer, Oji Paper Company Limited (Oji) announced a major development plan for the company’s pulp mill.Pan Pac’s processing includes production of solid lumber (+400,000 m3/annum), wood chips (+70,000 BDU/annum) and wood pulp (+200,000 admt/annum) at their industrial site located at Whirinaki, some 15 km north of the city of Napier, New Zealand. Wood-pulp produced at Pan Pac has provided a valued base product for newsprint manufacture in Japan since 1973. Pulp is currently produced using Thermo Mechanical Pulping (TMP). Pan Pac has been active in studying alternative markets and processes to enable expanded use of its resources and to provide further value addition to forests in the region. These studies concluded with Board approval in December 2010 to convert some of the Pulpmill capacity to enable the manufacture of high grade Bleached Chemi Thermo Mechanical Pulp (BCTMP). Approval by the directors of this conversion followed the securing of the necessary variation to the Consent to Discharge Effluent by the Hawke’s Bay Regional Council in November 2010. The project will see a staged conversion of the pulp plant to the BCTMP process and incorporates significant investment in a 2 stage Alkaline Peroxide Bleaching facility (principal supplier Andritz AG, Austria). In addition the new effluent plant will incorporate two stages of biological treatment to remove dissolved material present in the effluent and additional settling treatment to remove fine suspended solids (principal supplier Ovivo, Australia). The construction of the new facilities commenced in January 2011 and the plant will be operational in April 2012 – the total capital cost is in excess of NZ$70 million. The conversion will enable production of up to 200,000 adt of BCTMP grade with the new grade particularly being very beneficial in supporting the manufacture of high quality Carton Board. The target markets are China and the greater Asian region. Tasmanian forest deal threatened - againTasmania’s Upper House has placed a hurdle in the path of the forest peace deal, with a vote condemning the AU$276 million Intergovernmental Agreement. The Legislative Council on Tuesday signalled the Government could face major problems when it seeks to pass legislation in support of the federal-state plan.The Tasmaniam Mercury reported that the vote will not affect payouts under the agreeement, but laws guaranteeing wood supply and turning reserves into national parks must pass the Upper House to become law. Premier Lara Giddings said she hoped the Government might yet be able to convince the Upper House about the merits of the deal by the time the legislation was in front of them. "We've got a long way before we get to that point, and a lot more of that information to be gathered and to put to Legislative Councillors, for them to be able to make informed decisions," she said. New Zealand Log Prices September 2011In-market prices are back on the rise in China, the main export destination for New Zealand logs. After prices tumbled during June and July, they are now rapidly rebounding. However prices still remain more than US$10/JASm³ short of the values they reached earlier this year. Inventory levels are still relatively high in China. The volume of logs being supplied by competing countries is also strong. These two factors will constrain upward price movements within this growth market.Shipping rates have been relatively steady over the past month and exchange rate movements have been favourable for exporters. These two factors combined with the stronger in-market prices has resulted in stronger prices for export grade logs. On average export grade logs have risen in price by NZ$15/t over the past month. In New Zealand’s traditional lumber markets, being the US and Australia, demand remains subdued. Developed Asian countries and China are showing the greatest signs of growth in demand for lumber. Competition to supply these markets is however strong. The Agrifax Log Price Index, which measures returns from the whole forest, rebounded this month. The index regained the NZ$3/t which is lost last month to reach NZ$85/t in September. An increase in unpruned log prices was the component which drove the index up this month. Unpruned logs prices were generally stable. The Agrifax Log Price Index is currently $3/t higher than it was a year ago.
Pulp mill project permit status confirmedIn a release this week Gunns Ltd Managing Director Greg L’Estrange welcomed the view of Tasmania’s Environmental Protection Agency Director that substantial commencement for the Bell Bay pulp mill project had been undertaken. Under the Pulp Mill Assessment Act 2007 Gunns had a requirement to demonstrate substantial commencement of the project by 30 August 2011 and provided the EPA with a detailed submission earlier this month outlining the nature and scope of activity on the project to date. The EPA Director Alex Schaap on Wednesday outlined his view that the project has “substantially commenced” and that the permits remain valid.For a full copy of the EPA Directors view and Gunns media release, click here. Scientists up in arms over quake trialOver the last few weeks an Italian engineer, Paolo Lavisci, was speaking at a round of NZ Wood seminars following on from a presentation at the BNZ one day conference in Rotorua. He was outlining how the small town of L’Aquila in Italy was rebuilt with a focus on multi-story wooden buildings. A story appearing this week is like something out of Ripley’s Believe it or Not.Seven Italian scientists and other experts are now been accused of giving "inexact, incomplete and contradictory information" about whether smaller tremors felt by the L'Aquila residents in the six months before the April 6, 2009, magnitude 6.3 quake should have constituted grounds for a quake warning. The defendants are currently facing manslaughter charges over the deaths of 308 people who were killed in the tremor. GNS scientists and quake experts are among a number of New Zealand seismologists who have signed a petition supporting the seven scientists and other experts, who are charged with manslaughter. The New Zealand scientists had joined about 5200 international researchers in signing the petition. Scientists and their international colleagues say there is no way of predicting a quake. University of Canterbury geological science lecturer Mark Quigley said the 'holy grail', a way for scientists to predict the specific location, depth, time and magnitude of an earthquake did not exist. As one of our readers put it, “What sort of world are we living in now? Can they now charge AIDS researchers with manslaughter because they have not yet ”discovered” the cure...."  IYF Photo Competition WinnersAs part of the United Nations International Year of Forests (IYF) celebrations, the New Zealand IYF committee held a photo competition. Forests make up over 31% of New Zealand’s land area. They are essential parts of New Zealand communities, providing not only job and recreational opportunities, but immense environmental benefits as well.Congratulations to the competition winners Theme One: Environment Environmental benefits – depicting all the ways in which forests contribute to a healthy, diverse and attractive environment that enhances New Zealand society (including recreation, clean water, erosion control, soil stabilisation, landscapes) 1st Place: Philip Taylor 2nd Place: Peter Scott 3rd Place: Stephen Heap Highly Commended: Neil Thomas Highly Commended: Mark Forward Theme Two: Products Products – including processed wood or fibre in all its forms. 1st Place: Ivan Aleksandrov 2nd Place: Philip Taylor 3rd Place: Debbi Thyne Theme Three: Jobs Jobs – including all forms of employment within the forestry growing and manufacturing sectors: Indigenous, exotic, wood processing. 1st Place: Philip Taylor 2nd Place: Ivan Aleksandrov 3rd Place: Damon Wise Highly Commended: Hamish Levack New timber termite found in NZ
Termites from South America, never seen before in New Zealand, have been discovered in a Waikanae home Stuff reports. The Ministry of Agriculture and Forestry plan to fumigate the house next month to eradicate colonies of West Indian drywood termite, which is considered one of the most damaging drywood termites internationally because it tunnels into and destroys dry timber. If left unchecked, the termites have the potential to significantly damage timber framed homes and could impact on the country's sawn timber export industry.The home owners returned from working in South America 10 years ago and didn’t notice the presence of the termites until the past summer when they noticed some flying around - the winged termites are about 1mm in length. The family contacted a pest control company which alerted MAF. After investigating the termite, which is found in Australia and America, MAF decided to fumigate the house in mid - October after the termites' hibernation season. Two specialists from Australia will assist a New Zealand team fumigate the house. Source: Stuff Pulp and Paper industry loses leaderThe Pulp and Paper Industry has lost a stalwart with the recent death of Brice Landman, Chief Executive Officer of Carter Holt Harvey Pulp and Paper Limited. Brice had almost 30 years’ experience in the industry and his sudden death last week will leave a massive void for his colleagues and the wider Pulp and Paper industry.Brice’s roots lay in pulp and paper with his father having joined Tasman Mill in 1955. After graduating from the University of Canterbury with a BE (Hons) in Chemical and Process Engineering he travelled overseas and then held a number of engineering and operations management roles within BHP Steel Australia (Port Kembla NSW and Whyalla SA Mills) between 1967-1982. Brice joined the pulp and paper industry in1982 taking a role as Maintenance Manager at Australian Newsprint Mills Ltd’s green-field site, in Albury, New South Wales. Brice was promoted to the role of General Manager at the Boyer Mill in Tasmania, and it was during this time that the Australian Newsprint Mills became part of Fletcher Challenge. These Mills are now owned by Norske Skog. Brice was at Boyer Mill until 1992 when he was again promoted to the Tasman Mill in Kawerau as Operations Director. He spent the next five years at the mill where his father had worked and in the town he grew up in. He headed offshore again in 1997 to England as General Manager of the Fletcher Challenge subsidiary, UK Paper’s Sittingbourne Mill in Kent. He was there for two years until it was sold to M-Real of Finland. In 1999 Brice returned to New Zealand and joined Carter Holt Harvey Pulp and Paper at Kinleith Mill as Operations Manager. Later, he became Mill Manager, and in 2001, Chief Executive of CHH Kinleith. Brice was appointed Chief Executive of Carter Holt Harvey Pulp and Paper Ltd in 2006, a business with ~1.1 million tpa of market pulp, linerboard and containerboard production from 4 mills; Tasman, Kinleith, Whakatane and Penrose. He also managed the Fullcircle and Lodestar businesses. His responsibilities included all functions from wood procurement, mill operations through to sales and marketing. Brice was highly respected by his colleagues and those who knew him in the industry and the wider community. The industry collectively shares sympathy with both his family and his staff. Matariki Forests clearance for Canterbury assetsThe NZ Commerce Commission has granted clearance for Matariki Forests to acquire the Canterbury forestry assets of the Selwyn Plantation Board. Matariki Forests is New Zealand’s third largest forestry company and owns exotic forests throughout New Zealand. It is the largest forest owner in Canterbury. The clearance application related to both parties’ involvement in the supply of logs in the Canterbury region.The Commission considered that competition from existing participants in each of these markets is likely to be sufficient to constrain the merged entity. A public version of the written reasons for the decision will be available shortly on the Commission’s website Water quality technology licensed to NZ company A novel way to improve the water quality of lakes and other waterways, developed at New Zealand’s Crown Research Institute Scion, has been licensed to Blue Pacific Minerals based in Tokoroa. The exclusive licence is for the manufacture, sale and global distribution of modified zeolite. Modified zeolite is marketed under the trade name “Aqual P” by Blue Pacific Minerals, has the potential to be a potent tool in efforts to clean up lakes both in New Zealand and overseas.Zeolite is a volcanic mineral traditionally used in absorbency markets, such as for chemical spill products, and in sports turf and cat litter. Now modified by Scion scientists, the transformed product acts as a binding agent that attracts phosphorus and other polluting nutrients that run into waterways. By removing excess phosphorus and other nutrients from the water it reduces the conditions that lead to unwanted algal blooms. Scion researcher Robert Lei explains how it works. “Quite simply, zeolites are a crystal-like mineral with chemical properties and a honeycomb lattice structure that give it amazing absorptive properties in its own right. We have modified it to specifically target and lockup phosphorus. Basically the product is applied to the surface of a body of water and as it sinks it absorbs phosphorus then settles on the bottom to act as a sediment cap. This cap blocks further release of phosphorus from the sediments locking the phosphorus in.” For more information on zeolite, click here Chile’s forestry exports up 38 percentReuters have reported that Chile’s forestry exports rose 38 percent from January through July, boosted by high cellulose prices and solid demand in Asia. Exports totalled US$2.97 billion in the first seven months of the year, the Agriculture Ministry said in a recent report.Cellulose exports totalled over US$1.67 billion, up 45 percent from the same period a year earlier, the report said. The government said the forestry sector's medium-term outlook was good, citing strong demand in China and some European Union countries. Forestry exports totalled US$4.34 billion in 2010, up 19 percent from 2009 levels. NZ log exports exceed NZ$1 billionLog exports from New Zealand in 2011 to date are valued at over NZ$1 billion. More than 60% of this revenue has been earned from exports to China. Total earnings for the period from January to July 2011 were 37% higher than during the same period in 2010. The total volume of logs exported from New Zealand increased 24% this year. Higher prices achieved in all export markets have also contributed to the increased revenue. The average price of product exported to China has increased by 10% this year, while prices have increased by 12% for New Zealand log exports to South Korea.Source: NZX Agrifax U.S. Wins Forest Policy Award For its 2008 Amendments to the Lacey Act, the United States on 21 September 21 2011 was recognized as a winner of the World Future Council’s 2011 Future Policy Award in New York City. The Lacey Act is a 100-year-old law amended to curb international trade in illegally harvested timber products.Daniel Reifsnyder, Deputy Assistant Secretary for the Environment and Sustainable Development at the U.S. Department of State, accepted the award on behalf of U.S. Government at a ceremony held in New York City’s Central Park Zoo. The Republic of Rwanda and the Republic of The Gambia also received awards for their forest management policies. The ceremony was hosted by the World Future Council, the United Nations Forum on Forests (UNFF) Secretariat, the Secretariat of the United Nations Convention on Biological Diversity (CBD), the Food and Agriculture Organization of the United Nations (FAO), and the Wildlife Conservation Society. More>> Jobs
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...and one to end the week on...who said rugby players weren't intelligent????
As we're right into the rugby world cup, this seems appropriate. Some classic quotes from some famous Kiwi rugby players. And on that note, have a great weekend and enjoy the rugby on offer - and of course the 2011 NRL Grand Final on Sunday. Go the Warriors!!!
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