AFRICA FIBRE RESOURCE AVAILABILITY AND WOODCHIP SUPPLIERS · PDF fileAFRICA FIBRE RESOURCE...
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AFRICA FIBRE RESOURCE AVAILABILITY AND WOODCHIP SUPPLIERS
John Swaine
RISI International Wood Fibre Resource and Trade ConferenceFebruary 2017Da Nang, Vietnam
Content
Africa Wood fibre Supply
Africa Woodchip Exporters
South Africa Wood fibre Supply
South Africa Woodchip Exports
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AFRICA : 56 Countries
Africa : Interesting facts
Worlds longest river – Nile
Worlds largest:desert – Saharaland animal – elephantprimate – gorillareptile – Nile crocodile
Worlds tallest animal – giraffe
Worlds fastest animal – cheetah
The oldest human remains
2nd largest continent in the world by size and population - 1.2 billion people set to double in the next 33 years
Over 25 % of all languages are spoken only in Africa with more than 2000 recognized languages
AFRICAA continent of extremes:
LargeDryPoorYoung – half the continents population of 1.2 billion is under the age of 25 years
Africa Natural Resources
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Africa has the largest reserves of precious metals with over 40% of the gold, over 60% of the cobalt and 90% of the worlds platinum .
OIL Natural Gas
AFRICA : INDUSTRIAL PLANTATIONS
<100 K ha
>1 mill ha
400-500 K ha
200-300 K ha
100-200 K ha
South Africa
Africa : New plantation developments with some export potential
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Tanzania
Ghana
Sierra Leone
Mozambique
Beira
Maputo
Mozambique
Nacala
ATFCPlan 50k ha mainly Eucs + Acacia for sawlogs and poles
PortucelPlan 250k ha planted with Eucs for future pulpmill (2023)
Mozambique Tree Farms1k ha planted with Eucs with potential for 20k ha
Green ResourcesLand use rights for 126K ha for the establishment of hardwood plantations8000 ha established
Tanga
Dar es Salaam
Tanzania
Some Euc along coastPotential to establish 50k ha
Mtwara
50 k ha plantedSW -sawlogs pulp, Teak, Acacia, EucGovernment, Tanwat, Green Resources, New Forests
Ghana
Tema
Miro ForestryTeak , Pine, Eucs15k haMainly to service domestic fibre markets
APSDEucs + Acacia33k ha energy plantations for 60MW powerplant150k ha pulpwood plantations for future pulpmill
Takoradi
Sierra Leone
Freetown
Miro ForestryLeased 21k ha for the establishment of Eucalyptus and Acacia plantations
Africa Woodchip Exporters
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EFC(MAG Industries)
Durban Woodchips - NCT
TWK
Shincel - NCT
Bayfibre- NCT
South Africa
Mozambique
CongoPointe Noire
DurbanRichards Bay
Maputo
Somacel
Richards Bay WoodchipsNCT
Ghana
TakarodiEnergyRenewablesLtd
Mozambique
Exporter : SomacelNo exports in 2016Sold to NHR Investments and Nollen TradingMarkets
Bioenergy: Europe and AsiaPulp and Paper : Asia
Fibre sourced from South Africa and Swaziland
Congo
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PortugalSpain Turkey
Exporter : Eucalyptus Fibre Congo (EFC) owned by Mag IndustriesSpecies : EucalyptusMarkets: Turkey, Portugal, SpainLogs sourced from 48 k ha plantations owned by MAG Industries around Point NoireNo exports in 2016Future ? – Government wants to terminate the land lease
Ghana
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Exporter : Takarodi Energy Renewables LtdSpecies : Rubber woodInfield mobile chippingMarkets: Energy markets EuropeLogs sourced from ageing rubber plantations
SOUTH AFRICA FIBRE RESOURCE
Landuse in South Africa
15 February 2017 NAME OF PRESENTATION PAGE 17Total RSA Land Area = 122.3 million ha
South Africa land use crop comparison
South Africa plantation areas
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Richards Bay
Durban
South Africa plantation area by genus
51%42%
7%
0%
Pine Eucalyptus Wattle Other
Total – 1 224 456 ha
Trend :< Pine> Euc= Wattle
South African plantation area by ownership
62%
17%
17%
4%
Corporate Commercial FarmersState/ Municipalities Small Growers
Total – 1 224 456 ha
Eucalyptus Utilization
Domestic Pulp ,Paper and board
69%
Mining Timber 4%
Poles3%
Saw Logs9%
Woodchip exports
15%
8.2 mil tons
Pine Utilization
NAME OF PRESENTATIONPulp ,Paper and Board 32%
Poles + other 5%
Sawn timber 63%
6.1 mil tons
Wattle Utilization
Woodchips for export 97%
Charcoal & other
3% Bark for tannin
1.4 mil tons
South African plantation area development
19 % decrease
6% increase
South Africa total roundwood production ex plantations
51% increase
South Africa : pulp and paper production trend
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South Africa hardwood pulpwood supply and demand
Acaciacurrently balanced -1.4 mill tonssome decrease in supply from 2020 (Wattle to Euc conversions)Most of the fibre exported as woodchips
Euccurrently balanced – 8 mill tonsincreasing supply
- Pine + wattle to euc plantation conversions
Increasing domestic demand- Sappi – DP capacity
expansion ??
South Africa woodchip export products
Mixed Eucalyptus speciesSpecifically selected and bred for the domestic pulp and paper industry (Mondi + Sappi) optimizing:
- Growth- Pulp yield- Fibre properties – pulp and
paper- Disease and drought
resistance.
Acacia mearnsii (black wattle)Plantations initially established to provide wattle bark for the tannin production industry.Fibre not used domestically
South Africa Installed Chipping Capacity
Chipping capacity > available HW pulpwood volume
3.7 mil tons 2.5 mil tons
South Africa woodchip exporters : Richards Bay Richards Bay 4 chip mills
Close proximity to port
All linked with good road and rail
Conveyor link to woodchip berth
Pneumatic shiploading 800-1000 t/hr
Woodchip berth
Richards Bay
TWKMill capacity = 800k gmt Wattle + Euc to Japan and IndiaFSC COC certified
Bayfibre NCTMill capacity = 800k gmtWattle to JapanFSC COC certified
Richards Bay
Shincel (NCT)Mill capacity = 700k gmtEuc to Japan and IndiaFSC COC certified
Richards Bay Woodchips (NCT)Purchased from MondiRe-commissioned and resumed production and export 2016Mill capacity = 750K gmtEuc to Japan and India and biofuel to EuropeFSC COC
DurbanDurban Woodchips (NCT)
Mill capacity = 650k gmtWattle + Euc to JapanFSC COC certifiedLocation : Durban
South Africa Wattle export remains steady with increasing Euc exports
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42%
58%
Over aged fibre
Japan remains South Africa’s biggest market with increasing volumes followed by India
Future export volumes depend on ?
Market demandCompetitive pricingFX rate
Domestic demandAsian fibre resourceBioenergy
?
Bioenergy chips
2 shipments from South Africa to Europe by Nollen Group
Low cost fibreDrought, diseased and fire damaged timber not suitable for other higher value products.Residual chips in close proximity to export facility
Exports are planned to increase in 2017Richards BayMaputo
Woodchip price and currency movements
A continued downward price trend not sustainable given a 16% strengthening of the ZAR vs USD over the past year
South Africa in summarySustainable plantation fibreFSC Good road and rail infrastructure for sustained log deliveriesWorld class production and export facilitiesExperienced exportersCompetitive low cost fibreProximity to markets
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Sailing days
THANK YOU FOR YOUR ATTENTION !!
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