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INTERNATIONAL
ALERT TO SAVE SABAH RAINFORESTS FROM PULP AND PAPER PROJECT IN KALABAKAN.
23rd October 2000
LOGGING AND FOREST CLEAREANCE OPERATION WITHOUT ENVIRONMENTAL IMPACT
ASSESSMENT
3% OF SABAH'S LAND FOR GIANT PULP AND PAPER PROJECT
In
Kalabakan, Tawau, Sabah, East Malaysia, a business venture between
a State-owned company, Lions Group of Malaysia and the China Fuxing
Pulp and Paper Industries of China will be developing a US1.1 billion
plantation and pulp and paper mill project.
The project
will necessitate the felling of 240,000 ha of natural forest to
be replaced by a huge pulp and paper mill and a massive monoculture
plantation of the Black Wattle trees (Acacia mangium) or also known
as dry acacia or the mangium tree, a fast growing plant which is
native to tropical Queensland, Australia. The size of this huge
project, some 4 times the size of Singapore, will take up approximately
3% of Sabah and 6% of its remaining virgin forest. The mill is expected
to process 750 tonnes of pulp a year.
The project is
expected to be fully operational by 2005. Mooted by the Federal
Government, it is said to be the single largest foreign investment
in forest plantation and paper mill by China, which incidentally,
has enforced a ban on logging in large swathes of its territory
back home.
There are four
important issues that the project raises.
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Is
the project adhering to Malaysia and Sabah's environmental law
requirements? |
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Is
the removal of a quarter of a million hectares of forest acceptable,
in terms of damage to water, soil, wildlife, human livelihoods
and the ecology system downstream? |
 |
How
much pollution will the huge monocrop plantation and mill cause?
|
 |
Is
the project adhering to Malaysia and Sabah's environmental law
requirements? |
NO ENVIRONMENTAL IMPACT ASSESSMENT FOR LOGGING
Under the Sabah Conservation of Environment (Prescribed Activities)
Order 1999, any forest which is cleared for the felling of timber
covering an area of 500ha or more or any development of forest plantation
of 500ha or more requires an Environmental Impact assessment (EIA)
to be done.
According to our interpretation of the law, three EIA reports are
required for:
 |
forest clearing for
the establishment of the tree plantations |
 |
development
of the tree plantations |
 |
Is
the project adhering to Malaysia and Sabah's environmental law
requirements? |
Today, 12 000 ha of the land of the proposed project have already
been logged without a single EIA done. The state-owned company, Innoprise
Corporation Sdn Bhd is proceeding to log another 33 000 ha.
According to newspaper
reports, the company claimed that it could not afford to wait for
the EIA to be submitted. The company is only now in the midst of appointing
a consultant to handle the EIA.
The company
asserted that it need not carry out an EIA for the logging as the
Sabah Conservation of Environment (Prescribed Activities) Order
1999, came into effect only in September 1999 while the company
had already begun logging since 1998. Innoprise further asserted
that it proceeded with the logging operation based on the Coup Permit
from the Sabah Forestry Department in 1996. The company reportedly
is planning to conduct two EIA reports only, one for the plantation,
the other for the mill.
The Chief Minister
of Sabah seemed to defend the legality of its state-owned company's
operation. He too claimed that the logging operation was legally
licensed in 1996, well before the State EIA requirement was enforced
and in addition to that, the licence did not specify the need for
an EIA.
Further shock
came our way when the Sabah Forestry Department in their reply to
our queries affirmed that they had indeed issued a Coup Permit for
the company to log. According to the Department, in 1996, Benta
Wawasan Sdn. Bhd (a wholly owned subsidiary of Innoprise Corporation)
entered into a Tree Plantation Agreement with the State Government
of Sabah to log 106,310 ha of the Reserve Forest of Gunung Bara/Kalabakan
and develop it into a plantation. According to the Department, this
agreement binds Benta Wawasan to observe a set of conditions pertaining
to environmental protection and conservation. These conditions are
claimed to be "functionally equivalent" with the EIA legal
requirement.
Prior to the coming into force of the Sabah Conservation of Environment
(Prescribed Activities) Order 1999, the Federal Government's
Environment Quality Act 1974 and thsubsidiary law made pursuant
to this called the Environmental Quality (Prescribed Activities)
(Environmental Impact Assessment) Order 1987 instructs that
all proposed logging activities intended to be carried out on land
larger than 500 ha to require an EIA to be performed and approved
before the commencement of the activities. This law is not being
followed.
In a response
to SAM's query, the Sabah Environmental Conservation Department
said that the Federal law did not apply to Sabah as the project
involved matters such as 'land' and 'forests' which are within the
jurisdiction of the States. Malaysia operates under a Federal-State
system, where there is a division of areas between the Federal legislature
and the States'. The Sabah Government is clearly using a strict
legal argument to maintain that no EIA is needed to log such a huge
area of forests until they enforced their own law in 1999!
Worsening things
up, on September 26, The Star, a national Malaysian daily, reported
that the "conditions" stipulated in the Forestry Department
licence on environmental protection are also being disregarded by
the company.
According to
The Star, the company has violated the restrictions that prohibit
logging activities from taking place right to a river's bank or
on slopes of more than 25 degrees and clearing of a slope of more
than 15 degrees steep. The company also does not seem to maintain
the required 20m buffer zone between development activities and
the boundaries of a river catchment.
SAM is appalled
at how the logging can proceed without the submission and approval
of an EIA Report by the Department of Environmental Conservation
of Sabah, when the logging is clearly for the pulp mill project.
The Sabah Government should not fragment the various activities
involved in establishing the pulp mill, viz. logging for the tree
plantations, establishing the tree plantations and construction
of the pulp mill. We are very troubled by the fragmented approach
taken by the Sabah State Government to justify the lack of an EIA
for the logging activities.
The purpose
of an EIA prior to the commencement of any project is to assess
the environmental impacts and ascertain if the mitigation measures
proposed by the project developers are sufficient to minimise environmental
damage. The cumulative impacts of the project as a whole should
be taken into account. If foreseen environmental impacts are severe
and the mitigation measures inadequate, the EIA must be rejected
and the project should not be allowed to commence. Innoprise's actions
seem to imply that they are confident that their two other EIAs
(for the plantation and the mill) will be approved. This is legally
questionable and environmentally risky.
The Sabah Government
in allowing the logging to go on is making a mockery of the law
and is undermining the EIA process. By allowing the logging to proceed
without an EIA, the Sabah Government is completely disregarding
the environmental impacts of the logging activities and is 'manipulating'
the law.
Logging before
agreement is signed
The most perplexing
question about the issue is that as late as September, the commercial
department of the Chinese Embassy in Kuala Lumpur reportedly maintained
that "the project is still under negotiation." Nothing
is finalised yet.
It is a great
puzzle to us as to how this one joint venture project was allowed
to commence its operation even before its own internal agreements
are finalised; risking the area to be wasted, should the project
fail to take-off.
In addition
to that, Innoprise's claim that it had begun logging the area since
1998 raises another important question. The Memorandum of Understanding
for the project was only signed in 1997 and an early agreement between
the various joint-venture partners was signed in August 1999. How
could have Innoprise begun the logging operation when even the first
agreement between their business partners had not taken place?
ECOLOGICAL DAMAGE
Wildlife
The proposed
project is situated in Sabah's biggest remaining block of continuous
forest, sandwiched between two major conservation sites, the Danum
Valley and the Maliau Basin. Both are classified as Class One Protection
Areas allowing only scientific research and restricted activities
such as sustainable ecotourism to take place in the area.
The entire area,
a world-renowned biodiversity hotspot, contains significant populations
of rare animals and plants. Elephants, orang utans, Sumatran rhinoceros,
sunbears, gibbons, clouded leopards and the Bornean Bay cat and
wild cattle (tembadau or banteng), once thought to be extinct, are
all present. The forest probably contains somewhere in the region
of 120 mammals, 280 birds, and more than 2500 tree species.
The proposed
plantation scheme would assault this pristine environment, turning
the remaining forests as "islands", restricting the movement
of wildlife. This could potentially decimate their population. Wild
animals are reported to have been sighted more often, probably fleeing
from the logged area.
Does it make
sense to annihilate this forest, the very area that has the best
chance of being managed sustainably, when other forest areas in
Sabah have been ravaged by fire to the point where natural forest
management is impossible?
Erosion
The land of the
proposed project is mostly steep, and felling for plantations will
expose the soil to direct erosion by rainfall. Even a low rate of
erosion, for example 25 tonnes per hectare per year, would result
in more than 6 million tonnes of eroded material a year from the
entire proposed plantation. A higher estimate of erosion at 100
tonnes per hectare per year would give 25 million tonnes of soil
entering rivers every year.
What will the effects be on the price of water treatment for the
villages downstream? Will excessive silt cause the catch of villagers
who fish along the rivers to dwindle? Will there be greater flooding?
Will the sediment deposited at the river estuaries eventually reach
the coastal mangrove vegetation in Cowie Bay, depleting marine resources?
With only 12 000 ha logged, disastrous reports have already emerged.
The lush Danum Valley has already been flooded in recent months.
Threats of fire, pests, wild animal and dry spells
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In
the 1980s, an Indonesian plantation of Leucena leucocephala
was totally destroyed by insects. The Black Wattle trees that
will be planted in Sabah are in the menu of 19 kinds of insects.
The Black Wattle leaves also contain 43 percent protein, and
have even been recommended as an excellent fodder for cattle.
Asian elephants (Elephas maximus) are said to love the bark
of this tree. Planting such a huge area of the tree slap in
the middle of the biggest remaining habitat for Sabah's elephant
population may be simply asking for trouble. |
 |
The
plant is also said to be a thirsty crop that can absorb a lot
of underground water, drawing down the water table and making
the land drier. |
 |
Local
microclimate will often dry and heat up once the rainforest
is replaced with a plantation scheme. The drier mono-crop plantations
will no longer be the cool, damp and heavily clouded woods. |
 |
Plantations
burn easily. This is made more likely by the accumulation of
dry, leathery leaf litter in such plantations. |
POISONS
FROM PULPING AND BLEACHING
The processes involved
in pulp and paper industry are known to be highly damaging to the
environment.
 |
The
use of chlorine in bleaching the pulp has caused the industry
to be the third largest source of dioxin and its related compound
in the world. This problem is further compounded by the fact
that Malaysia still has no policy on dioxin and the laws
to regulate its presence in the environment. |
Furthermore
about 300 chemical compounds have been identified in pulp and paper
mill effluents. They are:
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Organic
pollutants and suspended solids. |
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Chlorophenolics
and their transformation products |
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Acidic
compounds |
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Other organochlorine products |
Air emissions of pulp and paper mills are known to emit:
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carbon dioxide (global warming) |
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hydrogen sulphide (rotten egg smell) |
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oxides of sulphur (acid rain), oxides of nitrogen |
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chloroform (possible carcinogen) |
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dioxins and furans |
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organochlorines |
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other volatile organics (toxic and precursors to ozone formation).
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UNSUSTAINABLE
ECONOMIC PLANNING
The area is
proposed to be planted at about 20,000 hectares per year, with 32,000
hectares in the first year alone, according to Innoprise Corporation.
Clearing at this rate is possible but re-planting is surely not.
Even the biggest operator in Sabah is now re-planting up to 6,000
ha a year (less than a third of that proposed), after 15 years of
experience.
The proposed
plan would require 38 million seedlings to be planted in year one.
In the coming years, 23 million seedlings would be planted annually.
The logging
operation is certainly an irresponsible corporate decision when
we consider the fact that the nursery to produce the seedlings
for the plantation has not even been set up while 12 000 ha have
been logged.
At the proposed
rate, by the start of the project's fourth year, workers would embark
on planting the routine load of 23 million seedlings, while taking
care of the previous 85 million seedlings already planted over an
area of 720 square kilometres, an area larger than Singapore. Can
this really be done? It is obvious that the State is dangerously
risking the creation of huge chunks of bare and uncovered land in
what used to be a verdant rainwater-sponge.
As it is right
now, swathes of bare earth are beginning to disfigure the once biodiversity
hotspot and the rivers are already brown with silt.
We also must remember that if this estimated high replanting rate
fails to be achieved, the mill would also face a shortage of pulp
supply. Faced with this predicament, an expensive and huge mill would
surely suffer huge losses. The mill then perhaps would have to import
timber or pulp.
CALL FOR
ACTION
It is for these environmental concerns that SAM has called the
State Government of Sabah and the Federal Government to:
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halt all further logging activities |
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take action against the parties that are responsible for logging
the 12 000 ha of forest without an EIA. |
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undertake a comprehensive EIA for all three aforementioned components
of the project |
 |
seek extensive and genuine public feedback from the public in
relation to the reviewing of the EIA. |
 |
review as a whole the project for its overall justification,
given the magnitude and scale of its environmental impacts. |
Support our
call for action
SAM appeals
to all concerned groups and individuals to send all letters of concern
to:
YAB Datuk Seri
Dr. Mahathir bin Mohamad
Prime Minister of Malaysia
Pejabat Perdana Menteri Malaysia
Blok Utama, Kompleks Jabatan Perdana Menteri
Pusat Pentadbiran Kerajaan Persekutuan
62502 Putrajaya
Malaysia.
Fax : 603-8883444
Email : epu@jpm.my
YAB Datuk Seri
Panglima Osu Haji Sukam
Chief Minister of Sabah
Tingkat 28 Bangunan Yayasan Sabah
Teluk Likas
88502 Kota Kinabalu
Sabah.
Malaysia.
Fax : 6088-435350
Email : ketuamenteri@sabah.gov.my
Mr. Eric Juin
Director
Department of Environmental Conservation
Tingkat 2 & 3
Jalan Tuanku Abdul Rahman
Beg Berkunci No. 2078
88999 Kota Kinabalu
Sabah
Fax : 6088-238120
Email : pgh.jkas@sabah.gov.my
Mr. Daniel K.S.
Khiong
Director
Forestry Department of Sabah
Beg Berkunci 68
90009 Sandakan
Sabah
Malaysia
Fax : 6089-669170
Email : pengarah.htan@sabah.gov.my
Kindly request
the State Government of Sabah and the Federal Government of Malaysia
to take the actions that we have demanded above. Please send copies
of your letters of concern to us at:
Sahabat Alam
Malaysia
27 Lorong Maktab
10250 Penang
Malaysia.
Tel : 604-2276930
Fax: 604-2275705
Email: smidris@tm.net.my
and meenaco@pd.jaring.my
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