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DEIA for the Proposed SFI Pulp and Paper Mill Expansion at SFI Complex, Sipitang District, Sabah Executive Summary Chemsain Konsultant Sdn.Bhd CK/EV403-4059/07 ES-1 Executive Summary 1 Introduction Sabah Forest Industries Sdn. Bhd. (SFI) began commercial operations in January 1988 as the first and only integrated pulp and paper mill in Malaysia with paper capacity of 144,000 TPA and pulp capacity of 106,000 TPA. Recently acquired by Ballarpur Industries Ltd (BILT) in last mid March 2007, SFI is now seeking to expand their current pulp mill to produce 210,000 TPA of bleached pulp. With this expansion, there will be sufficient pulp to increase SFI’s current annual paper production to 210,000 TPA from current 144,000 TPA. The 98% increase in pulp production will also yield additional market pulp sheet of 63,500 TPA solely for shipping to external paper making facilities. The total saleable paper and pulp after the expansion will be 273,500 TPA. The pulp and paper produced is expected to cater for the international as well as the domestic markets. To cater for the increased demand in power and steam after the expansion, a coal-fired boiler is proposed to generate up to 200 MT/h of steam to subsequently convert to 40 MW power by a new double-extraction condensing turbine generator set. In tandem with this, an on-site secure landfill is proposed to contain the boiler ashes generated as a result of the coal-fired plant and other hazardous wastes delivered from the operation of the mill. The proposed expansion will be integrated with the existing mill (referred to as the Project site) within the SFI Complex in Sipitang District, Sabah without reclamation of new land area. Accessible via the main Sipitang-Sindumin Highway, the mill is located approximately 5.5 km southwest of the township of Sipitang and 151 km from State capital Kota Kinabalu. The Project area size is only 400 ha within the 1,161.05 ha SFI Complex and is about 1.0 km to the east of Brunei Bay coastline. The GPS coordinates (longitude and latitude) taken at one point of the Project site are N 5°01’27” and E 115°31’57”. 2 Purpose of Detailed Environmental Impact Assessment (DEIA) This DEIA was prepared to fulfil the requirements of the environmental legislations in Malaysia. The developments of the proposed pulp and paper mill and its associated ancillary facilities including the coal fired plant and onsite secure landfill are categorized as prescribed activities under the Schedule Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order, 1987 made under Section 34A of the Environmental Quality Act, 1974, described as:- » Item 8(g) Pulp and paper industry – Production capacity greater than 50 tonnes/day, » Item 13(a) Power generation and transmission - Construction of steam generation power stations burning fossils and having a capacity of more than 10 megawatts and item and
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Page 1: SabahForestIndustriesSdnBhdES-Oct2008

DEIA for the Proposed SFI Pulp and Paper Mill Expansion at SFI Complex, Sipitang District, Sabah

Executive Summary

Chemsain Konsultant Sdn.Bhd

CK/EV403-4059/07

ES-1

Executive Summary

1 Introduction Sabah Forest Industries Sdn. Bhd. (SFI) began commercial operations in January 1988

as the first and only integrated pulp and paper mill in Malaysia with paper capacity of

144,000 TPA and pulp capacity of 106,000 TPA. Recently acquired by Ballarpur Industries

Ltd (BILT) in last mid March 2007, SFI is now seeking to expand their current pulp mill to

produce 210,000 TPA of bleached pulp. With this expansion, there will be sufficient pulp to

increase SFI’s current annual paper production to 210,000 TPA from current 144,000

TPA. The 98% increase in pulp production will also yield additional market pulp sheet of

63,500 TPA solely for shipping to external paper making facilities. The total saleable paper

and pulp after the expansion will be 273,500 TPA. The pulp and paper produced is

expected to cater for the international as well as the domestic markets. To cater for the

increased demand in power and steam after the expansion, a coal-fired boiler is proposed

to generate up to 200 MT/h of steam to subsequently convert to 40 MW power by a new

double-extraction condensing turbine generator set. In tandem with this, an on-site secure

landfill is proposed to contain the boiler ashes generated as a result of the coal-fired plant

and other hazardous wastes delivered from the operation of the mill.

The proposed expansion will be integrated with the existing mill (referred to as the Project

site) within the SFI Complex in Sipitang District, Sabah without reclamation of new land

area. Accessible via the main Sipitang-Sindumin Highway, the mill is located

approximately 5.5 km southwest of the township of Sipitang and 151 km from State capital

Kota Kinabalu. The Project area size is only 400 ha within the 1,161.05 ha SFI Complex

and is about 1.0 km to the east of Brunei Bay coastline. The GPS coordinates (longitude

and latitude) taken at one point of the Project site are N 5°01’27” and E

115°31’57”.

2 Purpose of Detailed Environmental Impact Assessment (DEIA) This DEIA was prepared to fulfil the requirements of the environmental legislations in

Malaysia. The developments of the proposed pulp and paper mill and its associated

ancillary facilities including the coal fired plant and onsite secure landfill are categorized as

prescribed activities under the Schedule Environmental Quality (Prescribed Activities)

(Environmental Impact Assessment) Order, 1987 made under Section 34A of the

Environmental Quality Act, 1974, described as:-

» Item 8(g) Pulp and paper industry – Production capacity greater than 50

tonnes/day,

» Item 13(a) Power generation and transmission - Construction of steam

generation power stations burning fossils and having a capacity of more than

10 megawatts and item and

Page 2: SabahForestIndustriesSdnBhdES-Oct2008

DEIA for the Proposed SFI Pulp and Paper Mill Expansion at SFI Complex, Sipitang District, Sabah

Executive Summary

Chemsain Konsultant Sdn.Bhd

CK/EV403-4059/07

ES-2

» Item 18(a) iv) Toxic and Hazardous Waste - Construction of secure landfill

facility.

A Detailed Environmental Impact Assessment (DEIA) is therefore required for submission

to the Department of Environment (DOE) for approval before Project commencement in

compliance with Section 34A of the Environmental Quality Act, 1974. The findings from

this DEIA are also supplemented by a Quantitative Risk Assessment (QRA) study in order

to predict the risk to those who may be affected in the event of an accident. The DEIA

study assessed three components: the upgrade of the mill, the proposed on-site coal fired

plant and the secure landfill.

Thus, this DEIA report shall form the basis on which the environmental concerns related to

the Project implementation shall be adequately addressed so that all potential impacts

brought about by the Project can be monitored and controlled effectively, to ensure a safe

and healthy working and also living environment for the surrounding community.

3 Statement of Need The Government has since the early 1990s, emphasized the need to achieve a state of

self-sufficiency to reduce import and encourage foreign capital inflow. SFI’s proposal aims

to visualize the country’s emphasis to progress towards self-sufficiency in the supply of

both pulp and paper at a steady rate, apart from emerging as the local supplier of pulp for

paper industries in Malaysia and beyond. Future outlook for potential pulp markets as

forecasted by the positive growth in the paper industry, are bright both domestically and

globally. The expanded capacity will cater 70% paper to domestic markets and 30% for

export. Therefore, investments in the SFI expansion Project and foreign exchange

earnings through increased exports will generate revenues to both the local and State

Government. Inevitably, the expansion will also create ample job opportunities for both

local and region residents.

The Project is set to upgrade the existing mill to a higher efficiency and competency by

utilising the latest Best Available Technologies (BATs) which will prevent or at least reduce

the emissions and impacts to the environment. Up-gradation of the mill is necessary for

SFI to gain the economy of scale so as to remain competitive in the market by maintaining

the unit production costs. In fact, SFI believes that pollution reduction via waste

minimization can render a profitable business by increasing production efficiency. This is

apparent in the introduction of elemental chlorine free (ECF) pulp bleaching sequence to

replace the elemental chlorine bleaching, which has long been known for its detrimental

effects to the environment. The Project is also poised to upgrade the existing 20-year old

plant into novelty, thereby reducing the higher risks of mishaps or accidental spills as

evidenced in the past due to physical wear and tear of the facilities.

The increased demand for power necessitates the need for a coal fired plant. SFI chose

coal as they have the assurance to tackle issues associated with coal fired plants, i.e.

emission of particulates, sulphur dioxide and nitrogen dioxide, by adopting the Clean Coal

Technologies (CCTs). Moreover, the use of coal in this proposed Project is in line with the

Government’s effort to diversify fuel sources for the power generation source in order to

reduce the dependency on oil and gas, as clearly seen in the implementation of

generation mix policy to achieve the five – fuel diversification strategy covering coal, oil,

Page 3: SabahForestIndustriesSdnBhdES-Oct2008

DEIA for the Proposed SFI Pulp and Paper Mill Expansion at SFI Complex, Sipitang District, Sabah

Executive Summary

Chemsain Konsultant Sdn.Bhd

CK/EV403-4059/07

ES-3

gas, hydro and renewable energy. The selection of coal as fuel for the proposed mill is

attributed to its availability, cheapness, and the low sulphur content which will result in low

SOx emission. In line with CCTs, circulating fluidised bed coal (CFBC) technology based

plant with supercritical steam cycles will be installed and incorporated with some form of

flue gas pollutant control systems and low NOx measures. The boiler is able to use wider

range of fuels but generates lower emissions than conventional grate boilers. The

combustion efficiency is high due to the effective mixing of the materials and heat transfer

between the solid material and the flue gas. NOx emission is relatively low due to the low

combustion temperature (800°C - 950°C). Sulphur emissions will be reduced considerably

by adding limestone to the bed during combustion.

Incidentally, the operation of the coal fired plant will produce ashes that will need to be

disposed or managed in a way that is sustainable and affordable. Although SFI prioritises

recycling and recovery of waste ashes in their waste management system, nevertheless

an on-site secure landfill is still required to help resolve the issue of ash management and

functions as the basic system in events of facility/technology failure.

4 Project Description The existing SFI pulp mill will be expanded by adopting Best Available Technologies

(BATs) not only to produce up to 210,000 TPA of paper from 106,000 TPA bleached pulp,

but also to minimise existing environmental non-compliance and future impacts. Bleaching

will be done with an ECF sequence. Excess bleached pulp will be sold as market pulp

sheet. The total saleable paper and pulp after the expansion will be 273,500 TPA.

A coal-fired boiler of CFBC type is proposed to meet the expanded mill’s increased

demand in steam and power. Additional 200 MT/hr of steam will be generated to be

subsequently converted to 40 MW power by a new double-extraction condensing turbine

generator set. The extracted steam (medium and low) will be used in the pulp and paper

making process. An on-site secure landfill is necessary for the disposal of ashes from the

boiler as well as other process wastes.

In summary, the followings are the proposed activities for the expansion:

• Installation of a new wood handling plant designed primarily for Acacia but capable of

handling Mixed Tropical Hardwood (MTH) to meet the increase in pulp production;

• The existing digester will be upgraded to compact G2 cooking by adding an IMP Bin

and the digester vessel used for extended cooking to increase the production to 750

ADT bleached pulp. Fiber Line will be upgraded with washing process, introduction of

oxygen delignification and conversion to Elemental Chlorine Free (ECF) bleaching

sequence representing today’s Best Available Technologies (BATs);

• Spill collection system to be upgraded accordingly;

• Installation of a new Black Liquor evaporator and Recovery Boiler for additional black

liquor solids load of 690 TPD;

Page 4: SabahForestIndustriesSdnBhdES-Oct2008

DEIA for the Proposed SFI Pulp and Paper Mill Expansion at SFI Complex, Sipitang District, Sabah

Executive Summary

Chemsain Konsultant Sdn.Bhd

CK/EV403-4059/07

ES-4

• Enhancement of the recausticizing plant and lime kiln to meet cooking chemicals

requirement;

• Installation of 200 ton per hour CFBC steam boiler designed to fire not only coal but

mixture of hog chips, fibrous effluent sludge and oil. Installation of a 40 MW rated

capacity double-extraction condensing turbine set to meet enhanced need of power

and steam as total power demand after Project shall increase up to 56/57 MW from 38

MW today;

• Enhancement of water supply treatment and effluent treatment plant as water and

effluent quantity is expected to go up by approximately 50% from today’s requirement;

• Enhancement of chlorine dioxide production facility from 6.5 TPD to 14 TPD by

installing a purchased chlorate-based plant of 8 TPD capacity;

• New facility of 8 TPD capacity to bottle, store and sell excess chlorine gas;

• New Installation of white liquor oxidation plant of capacity 16 TPD;

• New oxygen plant with capacity 20 TPD;

• Upgrading of paper machines (PM1 and PM2) to produce 210,000 TPA of paper.

Additional sheeting /reel wrapping machine upgrade in paper finishing plant;

• New market pulp line of 300 to 350 ADT/day capacity including installation of Noss

Cleaners System;

• Installation of an 880 tons refrigerant chiller to meet all chilling requirement in chemical

preparation plant (including the new purchased chlorate-based plant) after expansion.

Chilling requirement for new offices and control rooms shall be met by the existing

chiller system;

• Installation of a new air compressor to meet mill air requirement after expansion, and

• Construction of an on-site secure landfill for safe disposal of boiler ash and other

process hazardous wastes.

4.1 Existing Pulp and Paper Mill

The main components of the existing pulp and paper mill are the wood handling plant,

pulp mill, paper mill, raw water treatment plant, power generation plant, chemical

preparation plant, bleaching plant, chemical recovery plant, and effluent treatment plant.

The process begins when the wood handling system receives mixed tropical hardwood

(MTH) logs from the two forest concessions in Lumaku and Ulu Padas as well as small

quantities of short logs. Logs are processed in separate lines for making pulpwood and

fuelwood chips for pulping and burning. After being slashed and debarked in the debarking

drum, the pulpwood logs are chipped in the multiknife drop feed chippers. The screened

chips are stored in the chips storage piles or entered directly into the digester. Fuelwood

Page 5: SabahForestIndustriesSdnBhdES-Oct2008

DEIA for the Proposed SFI Pulp and Paper Mill Expansion at SFI Complex, Sipitang District, Sabah

Executive Summary

Chemsain Konsultant Sdn.Bhd

CK/EV403-4059/07

ES-5

logs are chipped without prior debarking. These chips, together with the oversized chips

and pulpwood rejects, are stored in the fuelwood chip pile to be burnt in the existing power

boiler as fuel.

The pulpwood chips are cooked in a Kamyr continuous digester equipped with high-heat

washing. The brown pulp produced is then discharged into a two-stage pressure/vibratory

system to separate knots and uncooked chips. The screened de-knotted brown pulp is

then washed and thickened before proceeding to the bleaching section. Black liquor

containing chemicals and dissolved lignin from the high-heat washing is sent to the

recovery plant. Brown pulp is bleached in a 4-stage bleach plant using chlorine, chlorine

dioxide, and oxygenated alkali as bleaching agents. Bleached pulp is then stored in two

high density towers.

In the preparation of stock, the diluted bleached stock (fibre and water mixture) is mixed

with broke, white water, purchased pulp, chemicals, additives, filler and starches. It is then

processed through refiners. The refined stock is then stored in two machine chests before

being sent for paper making. Paper is produced on two identical paper machines except

that Paper Machine #1is equipped with a size press. After the stock is cleaned in

centricleaners, it is discharged onto the wire section whereby water is further removed in

the press and dryer sections. The water is reused as white water for stock preparation.

Once the paper is slit and rewound by winders, it is sent to the finishing house. For specific

paper-size requirements, modern paper finishing equipments are used to cut the paper

into cut-size and folio sheets, and then packed for storage and delivery.

Water for the existing pulp and paper mill is supplied from Sg. Mengalong. The mill’s

current requirement of process water is 0.54 m3/s. Altogether, 0.6 to 0.63 m

3/s of water is

required for the consumption of the whole SFI complex. The water is treated by in-line pre-

chlorination, coagulation, sedimentation, and filtration. The treated water is used as

process water and for fire protection, whereas potable water is filtered by activated carbon

and chlorinated prior to distribution to the housing areas and administration buildings.

Power and steam for mill process and entire complex’s consumption is sourced by the

recovery boiler 1 and power boiler 1. Ashes from the power boiler are disposed at an

existing disposal site within the SFI complex while recovery boiler ashes are recycled to

the process to recover cooking chemicals.

Existing pollution abatement measures consist of sewer separation, spill collection and

spill reuse system, effluent and treatment, air pollution control equipment and pollution

monitoring.

4.2 Proposed Pulp and Paper Mill after Expansion

4.2.1 Wood Handling

A new plantation wood handling and preparation system is proposed to cater for the

increased wood consumption of 80,000 GT/month from 60,000 GT/month in addition to

the existing mixed tropical hardwood (MTH) line. The new line is designed primarily for

Acacia but can also handle MTH with restriction in diameter. The two lines will be running

in parallel with species ratios of 50% MTH: 50% Acacia to gradually 25% MTH: 75%

Acacia within four years. After four years, the new Acacia line will eventually replace the

Page 6: SabahForestIndustriesSdnBhdES-Oct2008

DEIA for the Proposed SFI Pulp and Paper Mill Expansion at SFI Complex, Sipitang District, Sabah

Executive Summary

Chemsain Konsultant Sdn.Bhd

CK/EV403-4059/07

ES-6

existing MTH plant as SFI heads towards total utilisation of Acacia mangium as its raw

material. Raw materials will continually be sourced from the forest concessions in Lumaku

and Ulu Padas.

The new line will run at capacity of 295 cm3 solid over bark/hour to provide sufficient

pulpwood for cooking in 24 hours of operation and 750 ADt/day of bleached pulp

production. It shall consist of a new debarker, chipper, screens, rechipper, bark crusher

and screen. Another chipper may be added in the future.

Total hog generated from both wood handling plants, chipper and the ITC is approximately

385.8 BDT/day. After total conversion to the more efficient Acacia plantation wood pulping

line, only 200.0 BDT/day of hog will be generated, which is then burned as biofuel to

produce 1,000 TPD of steam.

4.2.2 Pulp Mill

In the pulp mill, the existing digester will be upgraded to an extended modified continuous

cooking system incorporating a chip feeding system and a two-vessel steam/liquor phase

continuous digester retrofitted to compact G2 cooking with a separate vessel for

impregnation and the bleaching plant to DHT(EOP)D for a maximum throughput of 750 ADT/

24 hrs. This is approximately 98% increase from the production capacity of the existing

pulp mill. The improved cooking and introduction of oxygen delignification process and

new ECF bleaching processes will reduce COD load/ton of pulp to the effluent treatment

plant. The conversion to ECF is in line with the BAT concept to replace elemental chlorine

with chlorine dioxide in the first bleaching stage in order to eliminate formation of

chlorinated organic substances and dioxins and furans, which may have adverse

environmental effects in the receiving water i.e. the Brunei Bay.

Consumption of chlorine dioxide per ton of pulp is reduced because of the introduction of

oxygen delignification process in the first stage of bleaching which removes a large portion

of lignin. The total active chlorine requirement is consequently reduced to 40 kg/ADt of

pulp from the current 81 kg/ADt of pulp.

4.2.3 Chemical Preparation Plant

A non integrated purchased chlorate based chlorine dioxide generation plant will be set up

with capacity of 8.0 TPD to cater for the increased consumption of chlorine dioxide in

correspondence to the implementation of the ECF process. The new plant will produce

ClO2 concentration of 10.0 gpl compared to the current 6.0 gpl of ClO2 in the existing plant.

The new and existing ClO2 product streams will be mixed to achieve concentration of

between 7.0 to 8.0 gpl.

Surplus chlorine gases that would no longer be used in the production of ClO2 will be

bottled in a new facility, stored and sold. Sulphur dioxide plant capacity, precipitated

calcium carbonate plant (PCC plant) in situ production facility, and oxygen production shall

all be enhanced to match corresponding needs.

Page 7: SabahForestIndustriesSdnBhdES-Oct2008

DEIA for the Proposed SFI Pulp and Paper Mill Expansion at SFI Complex, Sipitang District, Sabah

Executive Summary

Chemsain Konsultant Sdn.Bhd

CK/EV403-4059/07

ES-7

4.2.4 Chemical Recovery Plant

The increase in pulp production means additional black liquor solids load to be recovered

is expected. Thus, to cater for the increase, a new identical capacity of evaporator and

recovery boiler is proposed to be installed in addition to the existing unit. The new items

are designed to ensure optimum combustion control and minimum emissions.

White liquor active alkali production capacity in the recausticizing plant will be increased

from existing design capacity of 180 TPD to 310 TPD. Burnt lime production capacity in

the lime kiln shall be increased accordingly from 150 TPD to 200 TPD with purchased lime

make-up of 24 TPD. Up-gradation of the lime kiln and recausticizing unit will improve

economical and environmental features.

4.2.5 Paper Machine

Both existing paper machines (PM1 and PM2) will be upgraded to produce 210,000 TPA

of paper. An extra sheeter will be installed in the finishing house.

4.2.6 Pulp Sheeting Machine

A pulp sheeting machine will be installed to manufacture market pulp sheet of 63,500 MT

per annum from the excess bleached pulp.

4.2.7 Raw Water Demand and Treatment

The intake station (pump house) and raw water treatment plant will be upgraded to handle

the increased water demand after the mill expansion.

4.2.8 Compressed Air System

New compressor and air dryers will be installed with a strategy devised to reduce power

consumption for production of compressed air. Existing compressors can thus be operated

at a lower pressure.

4.3 Coal-Fired Plant

The coal fired plant will house a circulating fluidised bed combustion (CFBC) boiler next to

the new RB2. The CFBC boiler has wide fuel adaptability, high thermal efficiency and low

emission of NOx and SOx pollutants. Coal, effluent sludge and hog fuel are used as fuels

for the CFBC boiler. Limestone is used to capture sulphur during combustion, reducing

formation of SOx considerably. The steam generated from CFBC boiler is combined with

the new RB2 boiler into a single high pressure (HP) steam header before distributing to

the double extraction steam turbine which in turn drives a turbo generator with an output

voltage of 11kV.

The CFBC is equipped with ash handling and bed material recovery systems as well as

electrostatic precipitator (ESP) for fly ash removal. Coal specifications from four different

suppliers are obtained in the DEIA for the selection of the best quality coal with low sulphur

content by the Project Proponent. In summary, the coal fired plant is designed with various

Page 8: SabahForestIndustriesSdnBhdES-Oct2008

DEIA for the Proposed SFI Pulp and Paper Mill Expansion at SFI Complex, Sipitang District, Sabah

Executive Summary

Chemsain Konsultant Sdn.Bhd

CK/EV403-4059/07

ES-8

CCT systems for minimising NOx, SOx and particulate emissions of which the main

systems are:

• High temperature and high pressure CFBC boiler of 200 t/hr and a condensing turbine

generator unit of 40MW including the thermal force system as the auxiliary system;

• Main plant building (i.e. steam turbine house, coal feeding and deaeration house,

boiler house and outdoor ESP, 80m high chimney);

• Combustion, ignition oil, limestone handling and desulphurization, coal yard and coal

handling system;

• Ash and slag handling system; and

• Feed water system.

4.4 Waste Generation and Proposed Pollutant Abatement System after Expansion

Expansion of the mill is expected to inadvertently increase the emissions of potential

pollutants. Therefore, installation or up-gradation of various mitigating measures is

proposed in the engineering design which encompasses the following main items:

• Spill collection system;

• Effluent and treatment;

• Atmospheric emissions; and

• Solid wastes.

4.5 On-Site Secure Landfill

The proposed secure landfill will cover a 9.0 hectares (300m x 300m) area on the

northwest of the pulp and paper mill, adjacent to the existing disposal site. The secure

landfill is allocated for the disposal of bottom ashes and wastes from CFBC boiler, hog

ash, lime mud, dregs, and waste from the PCC plant.

The Project Proponent has proposed that the existing disposal site be retained for

containment of solid wastes from the wood yard and log processing plant which are parts

of bark that contain too much soil and gravel, thus making them unsuitable for burning.

The primary purpose of this is to segregate these wastes from the process wastes which

could potentially be classified as hazardous wastes. At the same time, by disposing the

soil and gravel from the log yard at the existing disposal site, the lifespan of the new

secure landfill can be prolonged. The soil and gravel at 70% dry solids will be backfilled at

the low lying area within the disposal site.

Page 9: SabahForestIndustriesSdnBhdES-Oct2008

DEIA for the Proposed SFI Pulp and Paper Mill Expansion at SFI Complex, Sipitang District, Sabah

Executive Summary

Chemsain Konsultant Sdn.Bhd

CK/EV403-4059/07

ES-9

The landfill floor will be divided into cells, each to be erected over a period in phases. At

the initial phase, only one cell will be constructed. This first cell will have a life span of

approximately 6 months, and covers about 0.72 ha. Subsequently, more cells will be

constructed over the 9.0 ha landfill floor. Factors deriving the lifespan and sizes of the

subsequent cells in the later time would depend on the reduced volume of wastes that

would eventually go to the landfill as the Project Proponent continues to seek for recycling

options.

The liner system will be constructed from TRISOPLAST® due to its renowned ability to

swell and self-heal without clay minerals being leached out in the event of damage (see

Appendix 2.7.1 for more details on TRISOPLAST®).

Two types of drainage systems are proposed for the secure landfill, i.e. the leachate

collection system and surface water collection systems. Water from within the secure

landfill cells is collected by the leachate collection system, and then stored in leachate

storage tanks prior to being treated at the effluent treatment plant. Surface water/storm

water runoff are collected via the existing rain water canal system.

4.6 Project Implementation Schedule

The erection and commissioning stage of the Project is expected to commence early 2009

and completed by early 2010.

5 Existing Environment

5.1 Physical Characteristics

The rocks underlying the Project site are the Liang Formation, the Meligan Formation

found on the ridges near the coast, and the Temburong Formation situated inland.

Quaternary river and flood plain alluvium, and tidal swamp overlie these rock formations.

The area is generally very flat, flanked by a high elongated coastal ridge in the west, and

small truncated hills in the east. The mill is situated on a high, flat plain, with few drainages

flowing to the northeast, southwest, and some towards the east. The plain dips very gently

towards the south and southwest, but has steeper slopes in the north. The northern part

also contains more stream gullies. These streams have steeper slopes and narrow gully

like features, and are sometimes eroded due to the presence of groundwater seepage. In

some areas low Aeolian sand mounds covers the plain and these have been investigated

for silica sand deposits.

5.2 Meteorology

The Project site is situated near Sipitang Town. The town, located on the southwest coast

of Sabah overlooking the Brunei Bay, experiences an equatorial climate characterised by

warm and humid weather with constant temperature and considerable amount of rain all

year round. Meteorological data from nearest stations located at Mendolong (latitude

4°55’N, longitude 115°41’E) and the Labuan Airport (latitude 5°18’N, longitude 115°15’E)

are used for the study. Typical of a coastal site, land and sea breezes strongly influence

Page 10: SabahForestIndustriesSdnBhdES-Oct2008

DEIA for the Proposed SFI Pulp and Paper Mill Expansion at SFI Complex, Sipitang District, Sabah

Executive Summary

Chemsain Konsultant Sdn.Bhd

CK/EV403-4059/07

ES-10

the behaviour of diurnal wind. Average wind velocity varies with 5 m/s during the Northeast

Monsoon and 4 m/s during the Southwest Monsoon. Annual rainfall ranges between 2,300

mm and 4,400 mm. 24-hr mean maximum temperature fluctuates in small range of 32°C

and around 20°C for mean minimum temperature. Yearly mean relative humidity

fluctuates from 80 to 90% with most of the years remaining constant consecutively.

5.3 Brunei Bay

The Project site is about 1.2 km from the coastline of Brunei Bay, a deeply indented bay

with an area of about 250,000 ha and a mean depth of 20m. A chain of coral islands

including the large island of Labuan forms the boundary between the bay and the South

China Sea. Extensive mangrove forests with mudflats and sandflats at the mouths of the

major estuaries can be found in most of the east and south shores of the bay. Freshwater

flows into the bay via a labyrinth of interconnecting channels and waterways. The existing

jetty for the mill is built on the eastern shore of the bay.

The marine water quality of the bay was assessed by analysing samples collected from

four locations (MW1-MW4). 23 parameters were tested: temperature, pH value,

conductivity, colour, turbidity, hardness, chemical oxygen demand (COD), total suspended

solids (TSS), oil and grease, nitrate-nitrogen, total nitrogen, sodium chloride, cadmium,

lead, copper, zinc, mercury, nickel, chromium, total phosphorus, phenol, and E.coli.

Meanwhile, only MW1 was tested for PCDD (polychlorinated dioxin) and PCDF

(polychlorinated furan) analyses as it is closest to the effluent discharge point. Overall

results are within Type III category of the Interim Marine Water Quality Standards

(IMWQS) indicating that the water is not polluted by human activities, anthropogenic inputs

or effluent from the existing SFI mill. Moreover, PCDD and PCDF levels are not

detectable.

Two seabed sediment samples were collected at SBS1 and SBS2 located close to the SFI

jetty and were analysed for heavy metals and dioxin and furans (PCDD/PCDF). The

Canadian Sediment Quality Guidelines (CCME 1999) for the Protection of Aquatic Life is

used to assess the sediment quality as there is no standard for in situ marine sediment

quality in Malaysia. Results showed SBS2 generally has higher concentrations of heavy

metals than SBS1. Overall, the potential for adverse biological impacts to occur is

considered to be low.

Sampling of the fish fauna was carried out at three different types of habitat: sandy coastal

(4 stations), riverine mangrove (3 stations) and coral reef (5 stations). A total of 31 families

comprising 56 species were caught from all study stations. Data on the marine fisheries at

Sipitang were obtained from the Department of Fisheries, Sabah (2004). Main species that

landed at Sipitang are anchovy (Stolephorus spp.), banana prawns (Penaues

merguiensis), hardtail scad (Megalaspis cordyla), Indian mackerel (Rastrellinger spp.),

Spanish mackerel (Scomberomorus spp.), sillago whitings (Sillago spp.), mulet (Liza spp.

and Valamugil spp.), and barracuda (Sphyraena spp.). Coral reefs area is the most

popular fishing ground and the methods of fishing used include hook and line as well as

long lines. Other fishing areas include the nearby mangrove areas at Sg. Sebuboh, Sg.

Sinolob and Sg. Marintongan.

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A survey on the status of coral reefs was carried out at six selected sites (C1-C6) using

SCUBA. There are about eleven small coral reefs located within 2 km from the Project

area, to the north of the jetty at water depth ranging from 2 to 12 m.

A study on macrobenthos, a type of benthic fauna was carried out at 18 sampling points

within 1.5 km radius of the SFI mill effluent area. Majority of the macrobenthos are

polycheates, crustaceans and mollusks. The survey recorded at least 85 taxa from 68

families and 24 orders of macrobenthos comprising sediment, commercial and semi-

terrestrial species. Polycheates had the highest number of taxa, followed by crustaceans

and mollusks.

Phytoplankton and zooplankton composition study was carried out at seven selected

stations located on both east and west channel of the bay, and within 2-3 km radius from

the effluent outlet of the mill. A total of 35 taxa from two major phytoplankton groups were

observed in the samples collected from the seven stations. The density of zooplankton

was generally lower when moving away from the coastal waters.

5.4 Inland Waters

The major inland water of importance to the mill is Sg. Mengalong which is currently its

source of raw water supply. On further upstream of Sg. Mengalong and existing SFI’s

water intake station is a new water treatment plant for water supply currently being

constructed by the Sabah Ministry of Rural and Regional Development. Other inland

waters include a tributary flowing from SFI’s existing disposal ground into Sg. Sebuboh on

the north; and another tributary on the south at 2.5 km, believed to be of Sg. Sinolob’s. A

rainwater canal system surrounding the mill captures overflow of water and sludge from

the raw water treatment plant, and cooling water system which discharges into the valley

at the northwest of the mill area.

5.5 Surface Water Quality

Two (2) rounds of sampling were performed at the three (3) selected sampling stations:

Upstream and downstream of Sg. Mengalong and the tributary of Sg. Sebuboh. Results

obtained were compared to the Class IIA and IIB of the Interim National Water Quality

Standards for Malaysia (INWQSM). Sg. Mengalong was found to be slightly polluted with

Water Quality Index (WQI) of 78.58% on upstream and 77.28% at downstream, likely to

be contributed by the kampongs, irrigation and activities along the river. On the contrary,

Sg. Sebuboh is a clean river with WQI of 82.22%. This indicates that there is little

contribution of pollutants from the existing disposal site on the south.

Samples were also collected from two locations at the mill’s existing rainwater canal

system. Results showed that the quality of samples is very poor; mitigation measures are

proposed in Chapter 5 of the DEIA to prevent the discharge of overflow that causes the

contamination of storm water in the rain water canal system.

5.6 Groundwater Condition

Groundwater samples were collected from four (4) monitoring wells that have been

installed at the proposed secure landfill area. Three groundwater samples when collected

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ES-12

from GW1, GW3 and GW4 on the 9th May 2008 were observed to be highly turbid. This

could be due to the sampling activities which might have agitated the earth/sand in the

wells. The groundwater wells were purged the day before the sampling was carried out.

Samples from GW2 was collected a week later due to scarce and inadequate water for

analysis purpose initially.

Heavy metals were detected in all four samples, of which most are particularly higher in

GW1 (copper, zinc, nickel, and barium). Total nitrogen, sulphur and lead are found to be

significant in GW2 in comparison to the other three. Based on the groundwater flow

direction, the presence of heavy metals is most probably leached from the adjacent SFI

mill. Higher levels of heavy metals and nutrients are detected in GW1 and GW2 due to

their shorter distance from the build up area (the mill). These values are the baseline

values to be compared once the secure landfill is in operation.

5.7 Air Quality

Four (4) monitoring stations were set up to measure total suspended particulates (TSP),

particulate matter (PM10), oxides of nitrogen and sulphur, hydrogen sulphide (H2S), total

chlorine (Cl2), hydrogen chloride (HCl) and volatile organic compounds (VOCs). Baseline

air sampling was repeated twice, in November-December 2007 (wet season) and January

2008 (dry season) to obtain representative averages.

The results show that the TSP, PM10, SO2 and NOx levels detected were within the

Malaysian Recommended Guidelines for Gaseous Pollutants (MRGGP). The levels

recorded for HCl, Cl2 and H2S at all four points were also well below 0.2 g of HCl/Nm3 and

5 ppm of H2S of the Stack Gas Emission Standards, EQA (Clean Air) Regulations 1978.

VOCs were not detected at all stations. It is thus concluded that the existing ambient air

quality at the Project site and near settlements was generally good despite the fact that the

mill is in operation today.

5.8 Odour

Odour was measured using dynamic olfactometry at three (3) locations considered as the

nearest outside sensitive and public receptors. Odour is a permanent feature within 1-2km

from the mill site and measures are proposed in the DEIA to minimise the impact (Section

5.4.2.2.7).

5.9 Existing Noise and Vibration

Four (4) monitoring stations N1 to N4 were set up whereby noise levels at each station

were measured during day and night-time for a period of 24 hours. Noise monitoring

measurements were carried out three times. Baseline monitoring was repeated for the

third time due to the incomplete readings during the first two monitoring resulting from

technical failure of the noise meter and rain. Results showed that the existing Leq levels at

all monitoring locations during the day time and night time were well within the WHO

requirement of 75 dB(A) and DOE limits of 70 dB(A) and 60 dB(A) respectively. There

were three sources of noise observed at the proposed Project site and its surrounding

areas:

a) Passing vehicles at the adjacent roads;

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ES-13

b) Natural noise sources e.g. noise generated by blowing wind over vegetation, insects,

birds, roosters, and dogs; and

c) Noise generated by human activities i.e. walking, talking, etc.

In addition, measurements for existing noise levels of the SFI pulp and paper mill were

conducted at over 50 locations within the existing mill facilities. Highest noise level was

recorded at the steam and power plant and debarking and chipping area (above 100

dBA). Noise climate at the mill boundaries were observed to be within the DOE limit of 70

dB(A). Noise level at the mill’s entrance gates: Gate 1 was 61 dB(A), Gate 2 was 60 dB(A)

and Gate 3 was 69 dB(A).

The potential existing vibration source identified was from the lime kiln and the debarking

machine. There was no evidence of major vibration or impactive process that could result

in potentially high ground-borne vibrations.

5.10 Land Use

The proposed Project site is located within the area contemplated for the SFI Complex at

5.5 km southwest of Sipitang township. Within the boundary of the SFI Complex are the

Integrated Timber Complex (ITC), SFI housing quarters, ITC housing, disposal grounds

and a jetty. The overall land use features within 5-km radius of the Project area are: (1)

small agiculture, forestry and fishery activities, (2) quarries (KAC Quarry 600m to the west

and Kuta Property Sdn Bhd to the northwest), (3) jetties (SFI Jetty, Sabah Ports Jetty, two

quarry jetties and an abandoned quarry jetty), (4) a tar sealed road (Jalan Jetty) which

connects the two quarries with the SFI Complex, SFI Jetty and the two quarry jetties, (5)

an abandoned quarry adjacent to KAC Quarry, (6) a 300 acres recreational park (Taman

Pantai Merintaman) at approximately 3.4km north, (7) the Sipitang Local Council’s

disposal site located along Jalan Merintaman, (8) cemeteries (Christian cemetery, Chinese

cemetery, Tanah Perkuburan Orang-Orang Islam Pekan Sipitang and Tanah Perkuburan

Islam Kg. Luagan), (9) schools (SMK Padang Berampah, SK Padang Berampah, SK

Merintaman and SK Kawang), (10) churches (True Jesus Church, Seventh-Day Adventist

Church Sipitang and Gereja SIB Pekan Sipitang), (11) Masjid Pantai Kawasan Sipitang at

3.6 km southeast, (12) SFI existing water intake/pump station at 3.0km south, (13) the DID

irrigation station at 3.6km southeast, and (14) the Mengalong Forest Reserve Class VI

(Virgin Jungle) at 3.7km southwest of the Project site.

5.11 Traffic The Project site is located at approximately 5.5 km southwest of Sipitang town, or

approximately 151 km from Kota Kinabalu. It is accessible by Sipitang-Sindumin Highway,

a two-lane single carriageway that traverses in the north-southerly direction and connects

from Sindumin on the south to Sipitang and Kota Kinabalu on the north. Accessibility to the

Project site is via two junctions located at Sipitang-Sindumin Highway, i.e. the T-junction

on the east and the cross-junction on the southeast of the Project site which are

connected to form a T-junction near the SFI housing area.

Based on a traffic survey carried out at two junctions of the Sipitang-Sindumin Highway,

the northern section of the highway carried more traffic than the southern section. Based

on 345 working days per year, the number of truck-trips to and from the mill and SFI Jetty

on average was about 60 per day (two-way). Truck volumes on the road is equivalent to 7-

8 vehicles per hour (two-way) based on an average of eight (8) working hours per day.

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ES-14

5.12 Social Economic/Human Environment

Sipitang District covers an area of 2,732 km2. Most of the District is mountainous.

According to official statistics (Dept. of Statistics, 2001) the total population of Sipitang

Districts is about 30,000. It is expected to grow to 56,634 by 2010.

The 2000 census figures indicate that other Bumiputera (38%) are the main ethnic group

in Sipitang. This group consist mainly of the Kedayan, Lundayeh and Brunei ethnic

groups. This is followed by the Malays (16%), Murut (14%) and the Kadazan-Dusun

(11%). The largest non-Bumiputera population is Non-Malaysian making up 11% of the

population. About 41% of the population is in the age group of 15 and below, 56% in the

between 15-64 age group and only 3% in the above 65 age group.

Today, the major economic activities of the district are timber-related activities from SFI,

followed by agro-based activities and fishing activity. Sipitang district is well connected by

the Pan-Borneo highway from Kota Kinabalu to Lawas, Sarawak. A new trunk road

leading to Tenom was recently completed which links Sipitang to Tenom.

In order to identify, assess and ultimately manage the socio-economics attributes on the

human environment due to Project expansion, a socio-economic survey was conducted

on the settlements within 5-km radius of the site. The study area is sparsely populated

and doted with agriculture land, padi fields, fruit orchards, rubber farms, secondary forest

and bushes. Most of these kampongs are found along the main Sindumin/Sipitang

Highway, east of the SFI Complex.

Residents of all the villages surveyed enjoy 24-hour electricity supply provided by the

Sabah Electricity Sdn. Bhd. (SESB). Areas where electricity is still yet to be provided

utilises generator set as their mean of power supply. Some of the kampongs are already

connected with piped water supply while others still depend on rainfall (rain water is

collected and stored in a water tank). Some houses connected to piped water are

observed to collect rainwater as secondary water supply, which is typically used for

washing and bathing.

The surrounding villages enjoy good telecommunication service. However, certain villages

are equipped with a reel system telecommunication. In the age of digital

telecommunication, most of the villages are covered if not partially by existing service

providers.

Table ES-1 below shows the population breakdowns by kampongs based on data

furnished by the District Office, SFI as well as data collected from the field survey.

Table ES-1: Population Structure Within 5km Radius from Proposed Pulp and Paper

Mill

No. Locality Population No. of Houses

Main Ethnic Groups

Distance from the Project Site

1 SFI Housing 5,008 1,000 Mixture 300m SE (Within SFI Complex)

2 JKR Government Quarters

20 6 Mixture 2.0 – 2.5 km N

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No. Locality Population No. of Houses

Main Ethnic Groups

Distance from the Project Site

3 Kg. Ulu Sipitang

-Kg. Pasir Puteh

- Kg. Menangah

- Kg. Berambai

- Kg. Sg. Bubus

1,525 260 Kedayan 5.0 km NE

4 Kg. Naparan 332 50 Lundayeh 4.5 – 5.0 km NE

5 Taman Wawasan 220 44 Mixture 4.2 – 4.5 km NE

6 Apartment Merintaman (Teachers’ Quarters)

120 24 Mixture 2.7 km NE

1.1 – 3.4km NNE

1.3 – 1.8 km E

7 Kg. Meritaman

-Kg. Sg. Batat Padang Berampah

-Kg. Padang Berampah

458 102 Lundayeh

1.8 – 2.5 km SE

8 Kg. Pantai 614 117 Kedayan 3.1 – 3.6 km SE

9 Kg. Tanjung Nipis 1,500 130 3.6 – 4.0 km SE

10 Kg. Ranau Ranau 357 53 Lundayeh 4.2 – 4.5 km SE

11 Kg. Bangsal

-Kg. Kabar

1,000 100 5.0 SE

12 SFI ITC Housing 1,750 350 Mixture 1.3 – 1.5 km S (Within SFI Complex)

13 Kg. Batu 7 71 14 Lundayeh 2.5 – 2.8 km S

14 Kg. Long Kinangan 56 10 Lundayeh 2.5 – 3.0 km S

15 Kg. Kawang Lama 100 30 Lundayeh 4.5 – 4.8 km S

16 Kg. Sri Menanti

-Kg. Bahagia

315 43 Lundayeh 4.9 km – 5.0km SSE

Total 13,446 2,333

Based on an interview which was carried out with 346 respondents, a majority of them

were not aware of the Project. 90% of them expressed their environmental concerns and

worries of the potential impacts from the Project. More than half of the respondents were

positive that the Project would be beneficial to the communities whereas only 12% were of

negative opinions. The rest were unsure and some rather not comment.

5.13 Public Health Status

Various public health facilities are provided to existing SFI pulp mill staff and the public in

the region surrounding the proposed development. Information on the public health status

in the proposed Project site area is obtained from Hospital Sipitang since it is closest to the

site. The information indicates recent emergency department visits to the Hospital and

disease occurrence linked to environmental stimuli such as air quality, recreational water,

drinking water and arbovirus. From the assessment, it is observed that there is an

increasing trend in overall deaths between 2006 and 2007 whereby 25% of them are

attributed to air quality related health issues, and 75% greater visits to the emergency

department also related to respiratory related diseases which further suggests that

considerable environmental influence on health in the region is in the area of air quality.

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CK/EV403-4059/07

ES-16

Health survey questions regarding key areas of environmental health were also asked to

the public as part of the socio economic survey.

5.14 Occupational Health

SFI currently has a comprehensive occupational health and safety policy framework in

place at the existing pulp mill facility which strives to ensure a safe working environment

for all personnel at the facility. Occupational health and safety hazards identified for the

existing pulp mill are occupational noise, air quality, heat, chemical exposure and general

housekeeping. Information obtained from SFI in relation to the occupational health and

safety status for the existing pulp mill indicates the following:

• A generally decreasing trend of negative occupational health outcome at the facility;

• An ongoing occurrence of serious acute occupational health incidents;

• Inadequately maintained or poorly used occupational health and safety management

structure;

• Lack of preventative measures causing various occupational health hazards;

• PPE provided to employees but are not properly used due to lack of training and

follow-up/enforcement, and inadequate PPE provided for work area; and

• Lack of engineering maintenance in key hazard areas.

6 Mill’s Current Environmental Compliance Part and parcel of any EIA undertaking is the post-construction / operational monitoring

activities. For this purpose, a specific environmental monitoring programme has been

imposed upon SFI by the Department of Environment (DOE) since its operation in 1988.

This includes:

1. Daily analysis of various conventional effluent parameters;

2. Quarterly ambient air monitoring within the SFI compounds (upwind and

downwind);

3. Quarterly water quality monitoring of the inshore water at seven designated

locations in Brunei Bay;

4. Monthly sampling and analysis of lime kiln stack emission for H2S parameter only;

and

5. Half yearly stack emissions monitoring and sampling of lime kiln, recovery boiler

and biomass power boiler.

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Based on the results obtained from the monitoring programme, SFI has been in

compliance with DOE’s standards and contravention limits for COD levels in treated

effluents and H2S emissions from the lime kiln.

Nevertheless, the DEIA study has discovered that certain environmental standards are not

complied today in the following areas:

Water Contamination

• Based on the analysis of random water samples collected from a storm drain, the

surface water quality does not meet the standards of Class IIB of the Interim National

Water Quality Standards for Malaysia (INWQSM) and Standard B of the

Environmental Quality (Sewage and Industrial Effluent) Regulation 1979. The high

solids in the water are attributed to the disposal of sludge and overflow from

backwash basin at the raw water treatment plant on the upstream. COD and BOD5

loading may be contributed by the discharge from the SFI canteen and washrooms

along the drainage system. Water drip from the knot reject bin in pulp mill may have

washed into the drain during cleaning and further contributing to color and COD

loading.

• Storm water runoff from the wood yard and handling areas contain significant

amounts of COD, TSS and is dark in colour. The water is channelled and discharged

directly into the tributary of Sg. Sebuboh without treatment.

Odour

• Presence of occasional odour due to the release of malodorous gases that often fouls

air and causes complaints.

Therefore the following mitigation measures are proposed to be put in place during the

expansion:

• Addition of sufficient backwash water storage tanks and other tanks to prevent

overflow. Otherwise, backwash water level in the existing basin must be lowered to

below 50% level or emptied into a standby tank or returned to the treatment process

before backwashing. No backwash water should be discharged into the drain.

• Sludge from the water treatment plant must be collected separately and sent for

proper disposal instead of merely discharging into the drain. The Project Proponent

has proposed to build sludge drying beds at the treatment plant to dry solids before

mixing with the soil and gravel residues from the wood yard for disposal to the existing

disposal site.

• Existing washrooms along the drainage system will be demolished during the

expansion works.

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ES-18

• Channel effluent from the canteen to the sanitary line for treatment at the effluent

treatment plant. Pre-treatments such as oil, grease and fat trap or screen bars to

remove oil, grease and solids before the effluent treatment plant are proposed.

• Maintain a high quality of housekeeping and ensure that materials/ spilled liquors are

not washed or blown into the drain.

• Stabilise soil areas which are eroding by compaction or use gravel to reduce erosion.

• Good housekeeping to be conducted. No activities such as cutting, etc, shall then be

carried out at the wood yard, minimizing the dispersion of pollutants onto the ground

which would eventually leach to the adjacent runoff drain.

• Establish vegetated buffers between the wood yard and the storm drain.

• Scrape wood yard periodically and dispose of accumulated bark and debris.

• Provide continuous conductivity measurements or oil detection instruments at the

canal system so that in the event of contamination, the water can be rerouted or

retained. If a conductivity sensor has already been made available in certain drains, it

should be maintained/calibrated at all times to ensure proper functioning.

• New recovery boiler will be designed to burn non condensable gases. Backup torch is

also made available for incinerating the gases in case the recovery boiler breaks down

or is under maintenance. Emission into the open air without treatment is prohibited.

7 Predicted Environmental Impacts and Mitigation Measures The predicted environmental impacts and its corresponding mitigating measures are

outlined in Table ES-2: Summary of Predicted Environmental Impacts and Mitigating

Measures. There is no foreseen major potential impact during pre-construction stage as

there is no common site preparation and groundwork activity associated with the proposed

mill expansion and coal fired plant.

During the installation and construction stage of the proposed Project, part of the mill will

continue to function as today. Therefore the existing environmental monitoring programme

as mandated by DOE shall carry on until the completion of the Project’s development, i.e.

the upgraded mill, newly installed CFBC boiler and secure landfill have started operation.

As for the secure landfill, construction activities may induce impacts such as slope failure,

and surface water pollution. Meanwhile, groundwater impact was assessed due to the

operation of the proposed landfill.

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ES-19

Table ES-2: Summary of Predicted Environmental Impacts and Mitigating Measures

Project Activities & Environmental issues/

Concerns

Predicted Environmental Impacts Recommended Mitigating Measures Monitoring Program

Proposed Mill Expansion and Coal Fired Plant

1. Air Pollution Construction/ Expansion Stage:

Air pollution impacts from the following activities are not expected to have any significant impacts as they are greatly minimised by the presence of existing trees in-between the mill site and settlements which act as buffer:

• Increase in fuel-burning mobile equipment during upgrade works.

• Emissions from construction vehicles such as bulldozers, forklifts, loaders and trucks.

Emissions from existing pulp mill, lime kiln, hog power boiler and recovery boiler will persist during this stage as mill will continue to operate.

• Continue current monitoring programme i.e. TSP, PM10, SO2, NO2 and H2S at Project site (upwind) and SFI housing (downwind). Frequency: quarterly or as per DOE’s requirement.

• Continue stack emissions sampling and monitoring programme for lime kiln, recovery boiler and hog power boiler. Emissions must comply with Standard C of the Stack Gas Emissions Standards, EQ (Clean Air) Regulations 1978 for particulate emissions of 0.4g/Nm

3, and NOx of

2.0g/Nm3. H2S to comply

with contravention limit of 20ppm.

Operation Stage:

Significant sources of air pollution during operation of the existing and proposed mill are:

• Pulp and Paper Mill – air pollutants emitted from the kraft pulping process, recovery boilers and power boiler are particulate matter, SO2, NO2, CO, chlorine gas, H2S, methyl mercaptane, dimethyl sulphide and dimethyl disulphide.

• Control system for the existing RB1 remains the same whereas for the new RB2, a two chamber ESP with four electrical fields each will be installed to remove fly ash. The fly ash trapped by the ESP will be recycled back to the system and mixed with weak black liquor and salt cake for combustion in RB2.

• Record maintenance of air pollution control systems.

• Monitor TSP, PM10, SOx, NOx, H2S levels at the Project site (upwind), SFI housing (downwind), Kg. Sg. Batat Padang Berampah and

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CK/EV403-4059/07

ES-20

Project Activities & Environmental issues/

Concerns

Predicted Environmental Impacts Recommended Mitigating Measures Monitoring Program

• Coal fired plant – NOx, SO2, particulates.

• Kiln of lime plant (increased capacity) – particulate matter, NO2, SO2, and traces of H2S.

• Fugitive emissions – particulate matter emission from loading and unloading of raw materials including coal, and finished materials, movement of vehicles in the complex, debarking of timber and emissions from exposed surfaces.

• Chemical plants (chlor-alkali, chlorine dioxide and hydrogen chloride plants) – chlorine gas, chlorine dioxide and hydrochloric acid fumes.

Based on the predicted ambient air concentration of the major pollutants, total suspended particulate (TSP), SO2 and NO2 are well below the Malaysian Ambient Air Guidelines when there are control measures in place. However, the predicted levels of TSP and SO2 are above the guidelines within more than 2km radius area when control measures fail/not in operation. Electrical interlocking and alarm systems are in place to shut down the relevant boiler systems in the event when the control systems e.g. ESP fails or when the critical parameters are exceeded.

H2S and Cl2 gas concentrations are below the exposure standard.

• Common stack for RB2 and CFBC boiler is 80m in height.

• Smelt tank gases are treated in vent gas scrubber in two stages: (1) washing in a spray tower; (2) cooled in packed bed tower. NCG is burnt in RB2. During shut down or upset conditions of RB2, the NCG will be sent to the torch for combustion.

• The CFBC boiler or PB2 will be installed with a single chamber, five fields ESP to remove fly ash.

• Desulphurization of CFBC boiler is carried out in the furnace by addition of limestone.

• The existing lime kiln will be upgraded with a flash dryer with cyclone, a lime cooler, a new burner and an ESP to handle increased amount of flue gases emitted from the existing 50m stack.

• Constant maintenance on installed control systems to prevent breakdown that could cause emissions of pollutants at concentrations exceeding guideline levels.

• DOE’s guidance on performance monitoring procedures and requirements of air pollution control systems can be implemented by SFI to plan their monitoring programme for each pollution control system.

• Stack emission tests must be conducted every six months by competent personnel/consultant to be submitted to DOE.

• Set up Continuous Emission Monitoring System (CEMS) to sample, condition, analyse and

SMK Padang Berampah. Results must comply with Malaysian Recommended Guidelines for Gaseous Pollutant (MRGGP). Frequency: half yearly or as per DOE‘s requirement.

• Half yearly stack emissions sampling and monitoring programme for upgraded lime kiln, recovery boilers and power boilers. Emissions must comply with Standard C of the Stack Gas Emissions Standards, EQ (Clean Air) Regulations 1978.

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Project Activities & Environmental issues/

Concerns

Predicted Environmental Impacts Recommended Mitigating Measures Monitoring Program

provide a permanent computer record of pollutant concentration and send their CEMS data via electronic data transfer to the state DOE server to allow for monitoring and enforcement.

• On-line measurements of oxygen, CO and temperature coupled with the control of fuel to the furnaces for controlled combustion to prevent generation of persistent organic pollutants and ensure emissions meet the guaranteed level as stated in Chapter 2, Table 2.6.3.1.

2. Odour Operation Stage:

Odour impact is significant to the surrounding environment only when the processes and systems proposed to remove the odour are not in operation. With proper treatment or control of odorous gases released, then impact should not be an issue at all. Odour arises from:

• Pulp mill – mainly reduced sulphur compounds.

Stripping column, evaporator hot well, foul condensable tank and pressurised firing liquor tank – non condensable gases (NCGs).

• Install interlocking and alarm systems to allow smooth transition of main odorous gas destruction system to the backup system in the event of upsets, maintenance or other downtimes. If both systems are not working, the gases should be directed to a dedicated vent gas flume in the stack.

• Routine and diagnostic maintenance on all odour control systems including the dedicated burner and torch in the recovery boiler and dedicated vent gas flume.

Perform on-going assessment including compilation of complaint history, consultation with neighbouring residents or community odour surveys, assessment of emission control proposals and previous practical experience with the activity.

3. Impact on Brunei Bay Operation Stage:

Impact of mill effluent on marine water quality

• Impact on marine water quality is expected to result from the discharge of wastewater and effluents during mill operation after expansion. Effluent discharged into the sea is expected to increase from the present 1,500 m

3/hr to 2,400 m

3/hr after expansion. The pollutant

dispersion modelling for BOD5, COD and TSS in worst case scenario indicated that there would not be a significant change in these constituents as long as the current effluent quality is maintained.

• The following additions are proposed for effluent treatment plant (subjected to further detailed engineering design): (1) new primary clarifier unit to cater for the increase in hydraulic loading to the existing primary clarifier, (2) new cooling tower cell for chemicals sewer to reduce effluent

temperature to 35°C, (3) new biofilm reactor after the aeration basin, (4) new secondary clarifier to cater for the increased hydraulic loading, and (5) new biological check pond after the clarifier.

• Monitor and test the final effluent for the 23 parameters in Standard B. Results should comply with Standard B of the Environmental Quality (Sewage and Industrial Effluents) Regulations, 1979 and COD limit to comply with DOE”s contravention limit of 280 mg/L. Frequency: monthly or as per DOE’s

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Predicted Environmental Impacts Recommended Mitigating Measures Monitoring Program

Accidental spillage and leakage into the sea

• Equipment failure and upsets during transportation, storage, pumping or within the processing mill would result in spillage and leakage of fibres, chemicals, oils, contaminated liquors, untreated effluents, etc. Such impact is disastrous on Brunei Bay and can affect the quality of aquatic life as well as impact on human health.

Impacts to aquatic fauna

• There is no significant impact in ambient concentration for BOD5 and COD based on the pollutant dispersion modelling wherein water quality parameters e.g. DO are not expected to decrease significantly from the present values. Thus, fish fauna, fisheries, coral reefs, macrobenthos, primary productivity, phytoplankton and zooplankton composition should not be negatively affected.

• Maintain current ambient quality and dissolved oxygen level through the following recommendations: BOD5 discharge quality to not exceed 20 mg/l, COD to not exceed 250 mg/l and TSS to not exceed 50 mg/l.

• Continuous monitoring of seawater at the outfall and the coastal sea to monitor the situation and to identify measures required to mitigate any adverse impacts to water quality or marine life.

• The Project Proponent should review its current COD discharge quality. Treatment should be done using physicobiological process; chemical processes should be minimized wherever possible.

• Place on-line detectors such as on-line COD analyser in a final checking pond prior to effluent release whereby the signal from the device is connected to an alarm which would alert operators should the COD level becomes too high. The alarm may set into operation the rerouting of effluent for that batch for further treatment, provided there is space allocated for additional temporary retention.

• The proposed biological check pond should be stocked with fish to monitor long and short-term effects of treated effluent on the health of aquatic life.

• Continuous performance monitoring of effluent treatment system based on DOE’s guidelines DOE-IETS-1 on Performance Monitoring of Industrial Effluent Treatment Systems be practised by the Project Proponent.

• Continuous prevention, containment and

requirement.

• Record of performance monitoring.

• Record of upset conditions and corrective actions of the effluent treatment system.

• Quarterly monitoring of seawater at 0.5km. 1.5 km and 2.5 km radius from the effluent discharge point. Results must comply with Type III of IMWQS or as per baseline.

• Monitor fisheries activities at the neighbouring fishing villages. Continuous consultation with the local fishermen on any deleterious effect of losses is recommended to establish causes and enable remedial action to be taken at the earliest possible.

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CK/EV403-4059/07

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recovery of fibre, black liquor and other hazardous spills with the spill monitoring, collection, containment and recovery system. Existing spill collection and recovery system at all critical process areas should be upgraded appropriately to avoid concentrated or harmful streams entering the effluent treatment plant or contaminating the storm water drains that go directly into the sea. The spillage should be recovered and collected in dump tanks. To ensure proper collection and spill recovery, sufficient dump tanks must be made available and evaporator plant must have 10% excess capacity to be able to process the collected contaminated effluent.

• Conduct external audit for existing mil before commencement of Project to address oil spillage problems and determine leak sources and causes. Continuous and periodic audits upon operation of expanded mill are recommended.

• Build concrete structures (bunds) within each storage facility to contain the oils/chemicals under worst spillage condition, i.e. 110% of the tanks/containers’ capacity used to ensure all potential leakages and spills are contained. This is strongly recommended for the MFO jetty storage tank, whereby existing bund should be upgraded to contain at least 110% of the tank capacity.

• Install alarm monitoring system (visual and audible) at the existing MFO jetty storage pumping system to alert officers in charge for signs of initial leak. The alarm should be pressure-activated which will activate when pressure drop is exceeded during operation upset and then automatically trips the pump at a

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CK/EV403-4059/07

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Predicted Environmental Impacts Recommended Mitigating Measures Monitoring Program

predetermined time lapse after the alarm activation.

• Or else, devise a plan to relocate the jetty oil storage facility further away from the sea shore.

• Periodic checking (tentatively once a month) of the tanks/containers used for storing of oils/chemicals for any signs of leakages.

• Routine maintenance and servicing of auxiliary equipments such as pumps used to transfer oils or chemicals.

• All spills should be collected and reused if possible. Any unusable products should be treated as scheduled waste and disposed according to DOE’s requirements.

• Minimised impact of hydrocarbon contamination through an emergency spill response plan/oil spill contingency plan and hazardous materials management which shall form part of the EMP and would include details of procedures to be followed in the event of a hydrocarbon spill (responsibilities, incident, investigation and remediation actions to be taken).

• In the event of spillage due to accidental errors and the amount of spilled materials is too large, liquid transfer of the liquid materials spilled should be carried out instead of allowing immediate transfer or sorption using an inert absorbent or saw dusts.

• Prior to initiating the liquid transfer, the trained personnel must observe the characteristics of the spilled liquids with respect to the generation of fumes, vapour, odour, etc. so that appropriate personal safety gears can be used to protect the

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DEIA for the Proposed SFI Pulp and Paper Mill Expansion at SFI Complex, Sipitang District, Sabah

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Predicted Environmental Impacts Recommended Mitigating Measures Monitoring Program

personnel handling the response. In addition, the source of spillage must be rectified and mitigated.

• Liquid transfer is done either via hand pumps or suitable transfer methods as corresponded to the compatibility of the pumping material against the pumped liquids. Other methods include air pumps, siphoning or if situation permits, an electric pump may be used. Use of equipment that could generate sparks is strictly prohibited when transferring flammable liquids.

• Basic personal protective equipment (PPE) must be worn by the response personnel, i.e. safety glass, safety and chemical proof boot, chemical proof apron and a face shield. For odourous spilled materials, a respirator must be used and in certain circumstances when there is insufficient oxygen available for breathing, an in-breathing unit may be used.

• At the jetty area, unloading of raw materials (coals/chemicals) should only be conducted by authorized personnel.

• Handle materials appropriately with sophisticated hoisting equipment.

• Spill contingency plan must be made available at all times to ensure fast and proper handling of accidental spills into the sea.

• Ship berthing at the jetty should not discharge ballast water into the sea.

• Maintain and monitor the optimum dosage of macronutrient used in the aeration tank (biological treatment) and avoid excess nutrient into the effluent discharge.

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4. Sufficiency and Impact of Sg. Mengalong as Mill’s Water Resource

Operation Stage:

Based on a hydrological study conducted on Sg. Mengalong, the maximum water withdrawal from Sg. Mengalong will be 3.41 m

3/s (assuming all intakes are at a

maximum capacity) upon completion of the new treatment plant and the expansion of SFI mill. This amount is insufficient as the river needs remaining flow of 2 m

3/s to

avoid salt water intrusion. The mill is expected to experience water shortage for every one or two years, lasting from not less than 20 days during normal droughts to more than 100 days during severe droughts.

• Construct a raw water storage pond to overcome water shortage. Pond sizes options after considering the future expansion of SFI mill and upon commissioning of the Sipitang Water Treatment Plant are given in Table 5.4.2.33.The suggested pond depth is 5m.

• The pond can be constructed on a vacant land (L.A 86190228, CL 195316208) located on the west of the SFI mill.

• Alternatively, the Project Proponent could consider abstracting from other nearby water basin by performing a detailed water resource study. Two basins nearest to Sipitang area are identified: Lakutan (231 km

2) catchment area to

the immediate west of Sipitang district and Padas (8,726km

2), to the further west. However

due to the durable distance, particularly for Padas, this option may not be viable.

None.

5. Noise and vibration Construction/Expansion Stage:

Noise generated by construction and up-gradation activities include earth moving vehicles, piling, and other equipment noise and heavy vehicles (tipper trucks, pre-mix concrete vehicles). Piling is anticipated to be the major noise source but should not have any significant impact as the nearest residential community is more than 500 m away from the nearest Plant upgrading/addition Site.

• Check all combustion engine plants such as generators, compressors and welders to ensure minimal noise production with particular attention to residential grade exhaust silencers.

• Vehicles should be kept properly serviced and fitted with appropriate mufflers to minimise traffic noise. Use of exhaust brakes must be eliminated, where practicable.

• All vehicular movements to and from the site are to be made during normal working hours, where practicable.

• Operate machines at low speed or power and

• 24 hours continuous noise monitoring at SFI housing colony. Frequency: quarterly or as per DOE’s requirement

• Results must comply with DOE’s Schedule 1: Environmental Noise Limits and Control for Industrial area i.e. 70 db(A) level for daytime and 60 dB(A) for night time.

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Predicted Environmental Impacts Recommended Mitigating Measures Monitoring Program

switch off when not being used, where practical.

• Remove or stand down machines that produced excessive noise from the site until repairs or modifications can be made.

• Use impact wrenches sparingly, where practical. Use hand tools or hydraulic torque units instead.

Operation Stage:

• Noise contours of the current facilities with proposed expansions showed that predicted noise levels at East, South and West boundaries as well as Gate 1 and Gate 2 were within the permissible limit of DOE of 70 dBA daytime and 60 dBA night-time at industrial area. Gate 3, however was 5-7 dBA above the permissible limit but was deemed acceptable as the Gate was located within SFI vicinity.

• All noise sensitive areas nearest to the mill would not be affected by the upgrading/expansion of the mill as noise emissions were well confined within the mill. These comply with the DOE’s criteria in The Planning Guidelines for Environmental Noise Limits and Control (Annex C, Schedule 3).

• Areas within the mill, i.e. Power Plant, Wood Processing Area, Lime Kiln area and paper machine department have noise levels above 80 dBA.

• Noise impact from any marginal to moderate increase in transportation activities is not significant; less than 1 dBA.

• Additional equipments and processes in the mill after expansion and upgrade do not involve any major vibration or impactive sources. Minimal increment of vibration level is anticipated within the Wood Processing Area due to additional line introduced in the expansion.

• Select equipment based on the guaranteed noise emission of a machine where general target noise level should be less than 85 dB(A).

• Proper design or improvements of attenuation/engineering noise controls for the power plant, new wood processing area, lime kiln area and paper machine department where noise levels are predicted to exceed 80 dBA. Examples are the use of noise absorbers in pipelines, valves and equipments, noise insulation and use of special noise absorbing or eliminating machine foundations.

• Implement operational health and safety requirements to ensure workers are not exposed to noise levels above 85 dB(A) for 8 hours durations

• In plant noise mapping at on-start of operation.

• Noise measurements at mill’s entrance gates/boundaries: Gate 1, Gate 2 and Gate 3.

• 24 hours continuous noise monitoring at SFI housing colony.

• Frequency: Quarterly or as per DOE requirement

• Results must comply with DOE’s Schedule 1: Environmental Noise Limits and Control for Industrial area i.e. 70 db(A) level for daytime and 60 dB(A) for night time.

• Check for provision of appropriate PPE (especially ear plugs) to personnel who are exposed to high noise levels.

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6. Wastes Generation and Management

Construction/Expansion Stage:

Wastes are generated from the demolition of buildings, concreting work, and building work which involves painting and electrical installation.

• Biomass from cleared vegetation, concrete and cement residues, wood debris, etc. to be disposed of at Majlis Daerah Sipitang’s municipal disposal ground along Jalan Pantai Merintaman via land transportation.

• Hazardous wastes such as paint residues, grease, welding debris, lubricating fluids, etc. will be stored properly on-site before transported out to be disposed to an approved hazardous waste handler.

None.

Operation Stage:

• Solid wastes generated include power boiler residues (boiler ash), dewatered sludge from the effluent treatment plant, lime and slaker grits, green liquor dregs, CFBC boiler bed material wastes, limestone residues and garbage wastes.

• Waste oils, grease from machinery parts and chemicals are expected to be generated only during periodic maintenance routine and in small amounts.

• Domestic waste generated by workers on site and SFI housing area has the potential to cause disease outbreaks when not disposed properly.

• CFBC fly ashes to be reused by local cement, concrete or asphalt industry or in other civil engineering purposes.

• Bottom ashes and dregs to be disposed of at the on-site secure landfill.

• Hog ashes to be disposed of at the on-site secure landfill though recycling options are still investigated by the Project Proponent.

• Dewatered sludge to be burnt off in the CFBC boiler.

• Dregs and grit will be landfilled in the proposed landfill site.

• Solid wastes from the wood yard and log processing area are disposed of at the existing disposal site.

• Waste oils to be temporarily stored and sold to recyclers who are licensed with the DOE. Temporary storage procedures and areas must meet the DOE’s requirements.

• A characteristics analysis must be carried out to determine the chemical content of the fly ash or other wastes identified to be reused or burned off / disposed off.

• Record of storage and inventory of hazardous wastes.

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Predicted Environmental Impacts Recommended Mitigating Measures Monitoring Program

• Other toxic and hazardous wastes are temporarily stored for disposal to Kualiti Alam/Trinekens.

• Proper management of garbage collection by the Sipitang local authority. Garbage is expected to be collected on a regular basis and disposed of at the existing disposal site at Jalan Pantai Merintaman.

• The Project Proponent is recommended to maximise reuse of wastes from the mill site as generated, to continue researching and reviewing reuse opportunities.

• Develop a waste management plan as a key component of the Environmental Management Plan with the following procedures: (1) wastes that are recyclable or can be reused outside the Project site must undergo a Toxicity Characteristic Leaching Procedure (TCLP) test prior to usage, (2) prior to usage or disposal of the wastes generated or any tests done on it, the wastes must be allocated separate temporary waste collection and storage areas at source within the proposed mill area, and (3) materials that cannot be reused, recovered or must be handled differently should be taken to the proposed secure landfill. Organic wastes are recommended not to be landfilled.

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Predicted Environmental Impacts Recommended Mitigating Measures Monitoring Program

7. Future Traffic Impact Operation Stage:

• Based on a production rate of 210,000 tonnes/year, truck capacity of 30-tonnes and 345 working days per year, an estimated 90 truck-trips per day (one-way) or 33 pcph would be generated from the pulp mill. It is reckoned that the raw materials would generate about 11 truck-trips per hour (one-way) or 66 pcph (two-way).

• Main road traffics expected to be generated by the expanded mill are transportation of logs from the concession areas, imported raw materials from the SFI jetty to the mill and exported paper products from the mill to the SFI jetty.

• No significant traffic would be generated from the additional workforce in the mill after expansion as they would stay in the SFI housing areas.

• A two-lane roadway capacity analysis showed that the trips generated from the expanded mill would not cause significant impacts on the adjacent road network by Year 2010. However, the delay time encountered by logging trucks crossing Sindumin-Sipitang Highway is expected to be higher due to the increase in the main road’s traffic.

• Reschedule the transportation of logs to the Project site as required to avoid unduly delays and conflicts at the cross junction.

• Regular close monitoring of the traffic conditions at Sindumin-Sipitang Highway.

8. Social Economic Impacts

• The Project will have beneficial socio-economic impacts as it encourages the development of manufacturing facilities which captures the value-added earnings from processing. The venture is expected to reduce the reliance of Malaysia on imported pulp and increase Malaysia’s revenue as a pulp exporter.

• Temporary employment for local residents will be created during construction stage. Related activities such as infrastructure development, supplies and services offer opportunities for income generation.

• Indirect benefits from the Project to the Local

• Local communities must be given preference whenever practical, in employment, training and contract opportunities. Shortfall in available skills must in the long term be overcome through training within the local community.

• Maximise goods and services contracts to local businesses.

• Give specific on the job and classroom training where education standards are appropriate but skills are lacking.

None.

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Predicted Environmental Impacts Recommended Mitigating Measures Monitoring Program

Authority/State/Country are reduction in dependency on imported pulp and subsequently foreign exchange through this import, speed up the development and economic diversification program and direct and indirect taxes from households and expanded business.

• With the increase in population especially during construction period, there will also be an increase in demand for basic services and amenities.

• The proposed expansion is unlikely to cause mass immigration. Increase in population during construction is expected to be temporary as the workers will move away once projects are completed.

• Labour may not be completely sourced locally. Presence of foreigners is sometimes associated with increase in crime rate, sexually transmitted diseases and other social ills.

• Institute a repatriation program at the end of the migrant workers’ contract to ensure smooth and legal departure.

• All temporary structures should be dismantled and removed to prevent potential squatting problem once construction is completed.

• Carry out a community consultation activity to encourage involvement by the local communities and creating awareness as well as resolving issues for the sustainability of the Project.

9. Quantitative Risk Assessment

Construction/Expansion Stage:

• No significant impacts.

• However it is important to be aware of the risks involved in construction work; the measures are as specified.

• Use skilled workers and trained personnel for specialized and identified tasks.

• The provision, training and use of Personal Protective Equipment (PPE) in identified areas.

• Clearly visible signage in common languages to notify site personnel of occupational hazards on site.

• Observe all occupational health and safety statutes and regulations in the construction setting.

None.

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Predicted Environmental Impacts Recommended Mitigating Measures Monitoring Program

Operation Stage:

• Four types of chemicals with potential hazards are identified which are chlorine, sulphur dioxide, fuel oil and diesel.

• Failure scenarios for various sections of the plant and the related transport system could lead to chemical spills, tank fires, pool/dike fire and toxic vapour cloud dispersion.

• Individual voluntary risk fatality for the workers in the mill was assessed to be 0.51 x 10

-6/yr/person and 0.40 x 10

-

6/yr/person for day and night respectively, which is

much lower than the commonly accepted voluntary risk of 10 x 10

-6/yr/person.

• Risk of fatality on the neighbouring population was assessed to be 0.037 x 10

-6/yr/person and 0.031 x 10

-

6/yr/person for day- and night-time respectively, which

was much lower than the commonly acceptable involuntary fatality risk level of 1.0 x 10

-6/yr/person.

• Individual risk contours – Both 1 x 10-5 and 1 x 10

-6 per

year contours are within the proposed site’s boundary, hence do not pose any impact to neighbouring area. The recommended risk criteria set in by DOE have therefore been met.

• The expansion Project was found to have no significant impact on the surrounding areas. Impacts from possible risk of toxic release and fire and explosion hazards in the mill could be greatly minimised with adequate separation of distances and precautions.

• Implement all aspects of occupational health and safety framework as discussed in Section 5.5.2.10.1.

• Investigate all incidents and accidents and provide timely improvement/preventive actions. Reports should be made to senior management through the Occupational Safety and Health Committee.

• Institute regular preventative audits in all areas of mill operation, highlighting hazards, risks and general areas of improvement/prevention. Improvement/prevention actions are to be completed in a timely manner. Audit reporting should be made to senior management through the Occupational Safety and Health Committee.

• Label all incoming containers of hazardous material with identity of the hazardous chemical, appropriate hazard warning sign and name, address and emergency contact of the chemical manufacturer, importer or other responsible party.

• Maintain an inventory of hazardous materials in the work area.

• The Project Proponent shall maintain a MSDS for each substance in the hazardous chemical inventory.

• All new employees will receive Hazard Communication training.

• Outside contractors shall have a Hazard Communication Program meeting the requirements of Project Proponent.

None.

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Predicted Environmental Impacts Recommended Mitigating Measures Monitoring Program

• Establish an Emergency Response Plan (ERP) which covers both operational/process and external hazards should be developed as a tool for effective disaster or emergency management.

Proposed Secure Landfill

1. Slope Stability There are no significant slope instability problems except for the steeper stream banks since most of the areas are flat. The steeper banks near the rivers are subjected to erosion and slope instability

• Turfing for surface protection of gentle soil slope.

• Spray concrete (guniting) to protect slope face.

• Dentition concrete.

• Horizontal or inclined subsoil drains to drain out groundwater that causes excessive pore-water pressure.

• Soil anchors.

• Retaining wall structures.

• Slopes on stream banks, gabion structures, rip rap and armour rocks are sometimes used.

• Vegetating the stream bank.

None.

2. Surface Water Pollution Impact

Construction Stage:

• Siltation of stream is anticipated due to soil erosion attributed to site preparation and construction activities.

• Earth/excavated/ cut materials might spill and wash into the drain, contributing to water pollution.

• Site clearing should be restricted to the areas that are necessary for development of the landfill only.

• Site clearing and construction activities should be carried out during dry season to minimise soil erosion.

• Quarterly monitoring of tributary of Sg. Sebuboh (adjacent to the proposed secure landfill). Results must comply with Class IIB standard of the INWQSM or as per baseline.

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Predicted Environmental Impacts Recommended Mitigating Measures Monitoring Program

• Cut and fill works should be carried out during non-rainy days to prevent soil erosion and any possible landslides.

• Plastic sheets should be laid on bare slopes as temporary surface protection from raindrop impact. These slopes should be terraced and turfed as permanent soil erosion measures after the plastic sheets are removed.

• Earth fill areas and slope-cutting areas should be properly compacted to provide stable slopes and reduce sediment runoff.

• Immediately after completion of the landfill cells, the denuded areas not meant for further development should be rehabilitated with leguminous cover crops such as Centrosema pubescens, Calopogonium mucunoides, Pueraria javanica and Arachis pitoi.

• Provide silt traps at the discharge outlets of drains prior to discharging into existing tributaries.

• Holes and cavities resulted from clearing, grubbing, destumping and derooting shall be backfilled with acceptable materials and compacted to approximate densities of adjacent areas.

• River reserves shall be retained and excluded from development at the tributaries of Sg. Sebuboh. River reserves should be demarcated clearly on ground (painted pegs, signboards, etc.).

Operation Stage:

Leachate production from the interaction of landfill processes and rainwater will cause surface and groundwater pollution if not treated properly.

Implementation of a leachate management scheme which comprised the followings:

• Minimisation of leachate generation – control surface and groundwater contribution; use HDPE to cover active cells; phased disposal and progressive restoration; use low permeability

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cap; and shape final landform to encourage surface water run-off away from “active” cells.

• Containment of leachate within the landfill – use liner system to contain the leachate produced and drain into the effluent treatment plant; perimeter and bunding cell with low permeability bund walls.

• Control over leachate quality – leaching tests on incoming wastes especially for schedule and hazardous wastes and ban on specific wastes.

• Collection, treatment and disposal of leachate as it is generated – leachate collection system, effluent treatment plant.

3. Impact on Groundwater • The groundwater flow will affect the landfill if it is built on a layer of alluvial sand or semiconsolidated sandstone of the Liang or on fractured sandstone of the Meligan.

• Existing disposal site may pose groundwater contamination and affect the tributary of Sg Sinolob on the south.

• The landfill will have a strong impermeable liner system that can seal off any leakages, i.e. TRISOPLAST

®.

• SFI’s proposed system is a single composite liner made up of two parts, where the lower liner acts as a leak detection system and as a backup to the upper liner in case of failure.

• As for the existing disposal site, derive a monitoring plan for the affected tributary of Sg. Sinolob. Monitoring wells can be set next to the tributary or in the water. Prior to this, baseline sampling must be conducted to compare existing condition to operational phase.

• Groundwater quality monitoring at the four groundwater wells. Results must not be higher than baseline. Frequency: quarterly or as per DOE’s requirement.

• Quarterly monitoring of tributary of Sg. Sinolob on the south of the existing disposal site. Results must comply with Class IIB of INWQSM or as per baseline.

Cumulative Impacts

1. Environmental Health Impact

• Various air pollutants generated from the mill have the potential to impact human health in different ways, through the main exposure pathway of inhalation though this is largely dependent on the concentration of exposure and prior medical condition of the receptor.

• For Operation Stage, an occupational safety and health (OSH) program must be developed by the Project management.

• First aid and emergency response program (ERP) will need to be planned and implemented.

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CK/EV403-4059/07

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Project Activities & Environmental issues/

Concerns

Predicted Environmental Impacts Recommended Mitigating Measures Monitoring Program

• As for surface water contamination, due to minimal likelihood of surface contamination, and the proximity of settlements to key adjacent river systems, the anticipated risk to public health from this hazard is considered minimal.

• Likewise, due to the groundwater flow modeling and expected contaminant plume paths, it is also anticipated that the risk to public health from the hazard of contaminated groundwater will be minimal, if any.

• The upgrade of the mill will eliminate the use of toxic chemicals such as chlorine, hence it is expected that the extremely hazardous pollutants of dioxin and furan will not be discharged to Brunei bay though the wastewater stream proposed for discharged, adjacent to SFI jetty. Hence, risk to public health from the hazard recreational water quality, further contaminated beach or ocean sediments or from hazard contaminated seafood will be minimal, if any.

• Lifetime cancer risks calculated for individual air pollutants and total lifetime cancer risk is considerable less than the universally accepted risk level of 10

-6.

2. Environmental Economics

Operation Stage:

Cost Benefit Analysis:

• Net present value (NPV) = RM 776 million

• Benefit cost ratio (BCR) = 1.4

A feasible project is when the NPV ≥ 0 and the BCR ≥ 1, suggesting that this project is viable at the societal point of view.

Internal Rate of Return (IRR) of 75% which is very high, exceeding the social cost of capital n Malaysia. This is related to the nature of investment flow, i.e. the investment is limited to the expansion of the pulp and paper production

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Page 37: SabahForestIndustriesSdnBhdES-Oct2008

DEIA for the Proposed SFI Pulp and Paper Mill Expansion at SFI Complex, Sipitang District, Sabah

Executive Summary

Chemsain Konsultant Sdn.Bhd

CK/EV403-4059/07

ES-37

Project Activities & Environmental issues/

Concerns

Predicted Environmental Impacts Recommended Mitigating Measures Monitoring Program

plant capacity and most other investment costs are already made during the initial establishment stage.

3. Land use • As Sipitang town is undergoing rapid development, eventually it would come to a time when urbanization will spread to the areas adjacent to the mill complex.

• While Sipitang is a small district itself, it is foreseeable that when rapid urbanization takes place, SFI as the industry may be put into a tug-of-war situation with developments that may come.

• The air pollution modeling has predicted that incremental concentration of TSP release can reach to a maximum of 338.8µg/m

3 under extreme

meteorological conditions when control measures are not in place. This high concentration is near the Project site and extends up to two kilometers to the south from the Project site and about one kilometer in the other directions. Likewise in the event when control measures to reduce SO2 emissions are not in operation for all the significant sources, the predicted maximum 1-hour average SO2 incremental concentration is between 300 and 658 µg/m

3, extending up to three kilometers to the

north from the Project site and more than two kilometers in the other directions. These areas are therefore termed as “high risk” areas.

• It is very important any planning scheme or structure plans evolved in the future should always consider the existence of SFI as a heavy industry so that landuse compatibility can be satisfactorily met.

• ‘High risk’ areas should be void of zoning for residential and institutions such as schools in the future.

• For this reason, the following types of developments for areas surrounding SFI are proposed:

� Downstream wood related industries;

� Warehouse/gowdown; and/or

� Agricultural uses including pastures and grazing, cattle goats, chicken, fowl, etc.

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