From: Chris Lang
To: Julia Lim (UFS)
Date: 18.10.2006 11:16
Subject: Questions on raw material supply for UFS’s pulp operations
Dear Julia Lim,
I am currently working on an article for the World Rainforest Movement bulletin (www.wrm.org.uy). I would be very grateful if you pass on these questions about UFS’s proposed pulp operations on Kalimantan to the appropriate person in the company:
1. UFS’s planned operations (as I understand it) are the following:
– Wood chip mill on Pulau Laut: 700,000 tonnes a year.
– Kiani Kertas pulp mill: 525,000 tonnes a year.
– Satui pulp mill: 600,000 tonnes a year.
Does UFS have any further proposals in the pulp and paper sector?
2. Please let me know the status of the various projects. I understand that the wood chip mill is proposed to come on stream soon. When will it start operations? What is the current status of UFS’s takeover bid for Kiani Kertas? And when do you plan to start construction of the Satui pulp mill?
3. I would be very grateful if you could send me details of how UFS plans to supply each of its proposed operations in Kalimantan: the wood chip mill; Kiani Kertas; and the Satui pulp mill. Kiani Kertas has never run at full capacity and two years after it started operations, it was forced to import woodchips from Tasmania. How does UFS propose to address this shortage of raw material?
4. What area of good quality plantations does UFS have in the PT HRB concession? What is the total area planted? What growth rate does UFS anticipate achieving from these plantations?
5. Please send me copies of any independent studies that you have produced to determine whether there is an adequate supply of raw material for these operations. In 2005, CIFOR produced a report which questioned whether UFS had access to sufficient raw material from plantations to run its planned pulp operations. Please outline what the company has done since this report was produced to remedy this situation.
Please consider your response to be on-the-record. Please note that my deadline for the article is Friday 20 October. I would be grateful if you could reply before that date. Thank you for your time and I look forward to hearing from you.
From: Wong Vun Khi (UFS)
To: Chris Lang
Date: 20.10.2006 11:52
Subject: Questions on raw materials supply for UFS’s pulp operations
Dear Mr Lang,
Thank you for your email requesting some information about our operations. However, as you want to receive the information latest on the 20th of October, the short time only allows us to give you some brief answers to your questions.
As an environmentally conscious and responsible organization we try to understand your concerns and we will do our best to give you an update on how we are developing our business. However, we hope you understand that as a public listed company, we are not in a position to give you any material information, which has not been made available to the market. Going forward, we are open to a more close cooperation with organizations working for the environment, as we believe that sharing ideas and opinions may give us all a better understanding of the business and how the environment can be protected in the best way.
With our best regards,