Safcol News

SAFCOL News November-December 2015

your voice, your paper

New communications committee launched – Page 2

A warm welcome to our new board: we are fully behind you – Page 3

SAFCOL donates school shoes and blankets – Page 7

SAFCOL donates school and educare centre – Page 8

SAFCOL makes great impression at the World Forestry Congress

Agriculture, Forestry and Fisheries Minister Senzeni Zokwana and African Union Chairperson Dr Nkosazana Dlamini-Zuma visit the SAFCOL exhibition stand at the World Forestry Congress, at the Inkosi Chief Albert Luthuli International Convention Centre (ICC), Durban, KwaZulu-Natal

SOUTH Africa once again took centre stage as it hosted the World Forestry Congress (WFC) Durban from 7-11 September 2015.

The congress was themed “Forests and People: Investing in a Sustainable Future”. This highly anticipated event for many in the forestry industry, non-governmental organisations and policymakers in government was a resounding success, and SAFCOL’s 50-strong delegation took part actively, attending different informative and educational sessions.

The WFC is a global platform that facilitates discussions and analysis of key policy issues affecting the forestry industry globally, and where possible solutions are also provided during the event. The main purpose of the Congress is the development of forestry worldwide as a vital part of society.

Another important aspect of the WFC is the sharing of information and expertise between international and local people

through exhibitions where various companies, governments and NGOs display their products and services.

For the 2015 leg of WFC, SAFCOL, alongside the hosting Department of Agriculture, Forestry and Fisheries, the World Wide Fund for Nature (WWF) and other stakeholders displayed impressive exhibition stands that showcased their products and services to the delegates.

the participation of SAFCOL CEO Nomkhita Mona, and Senior Manager of Learning and Development, Peggy Sithole in different panels, discussing various issues pertaining to the forestry industry.

Ms Mona chaired the panel discussion titled “Encouraging product innovation and sustainable trade – Growing better trees for the needs of humankind”.

The WFC is hosted every six years in different parts of the world. Previously, in 2009, it was hosted in Buenos Aires, Argentina. As it is, South Korea and Russia have both declared their candidacy to host the 15th WFC in 2021.

South Africa faced tough competition from India to host the 14th WFC but our country’s reputation as the leading destination for business conferences and global events played a big role in ensuring it was selected as the host nation.

Some of the highlights of the Congress include

World Forestry Congress Continued on page 2

2 | EDITORIAL AND LETTERS

Editor’s Note

NOVEMBER-DECEMBER | 2015 SAFCOL

From on page 1

Ms Sithole, on the other hand, shared SAFCOL’s experience in integrating the youth in the forestry industry under the topic: “Youth – Forests for the Future”. Throughout the week, the SAFCOL flag was flown skyhigh. The SAFCOL exhibition stand was simple but effective and attractive.

CEO’s Christmas message

Not even Dr Nkosazana Dlamini-Zuma, Chairperson of the African Union, could resist making a turn and finding out what SAFCOL was all about.

Khaya Buthelezi, SAFCOL’s head of communications, was at her service, answering all questions relating to the company’s projects, such as timber structures, school desks and many others.

With the festive season holidays around the corner, we clearly have a lot to be excited about.

What better way to end a growth-filled year than introducing our new tabloid publication, SAFCOL News.

In line with the slogan “your voice, your paper”, this publication belongs to everyone who is part of the SAFCOL Group family.

We ask every one of you to read it and offer us feedback. South Africa hosted the forestry industry’s highly anticipated World Forestry Congress (WFC) in September 2015.

Themed “Forests and People: Investing in a Sustainable Future”, the Congress was a great opportunity to showcase to the world SAFCOL’s contribution to South Africa’s developmental agenda through our community development and transformation programmes.

As the week progressed, numerous dignitaries, who were highly impressed, continued to flock to the SAFCOL stand to engage and interact with our team of foresters, marketers as well as learning and development specialists.

3 | INTERNATIONAL NEWS

Chinese delegation visits SAFCOL SAFCOL

Nomkhita Mona, SAFCOL CEO

As we prepare to take a break over the festive season, I would like to wish you all a well-deserved rest, a joyous Christmas and a prosperous New Year.

I wish a safe journey to many of you who will be travelling to various destinations visiting friends and relatives over the festive season.

And may you return safe and healthy in the New Year for yet another year filled with hopes and dreams for a greater SAFCOL! Merry Christmas!! Happy New Year!!

New Communications Committee launched

SASAC and China Foma officials at SAFCOL operations in Belfast, Mpumalanga

A Chinese delegation recently visited SAFCOL’s operations in Belfast, Mpumalanga.

This was a site visit, which was part of exploratory cooperation talks between stateowned companies in China and South Africa under the Department of Public Enterprises (DPE).

This visit to SAFCOL operations in Belfast follows a Memorandum of Understanding (MOU) signed between the department and the Chinese State-owned Assets Supervision and Administration Commission

The 2015 fire season should have left us by now. However, a natural phenomenon called ‘El Niño, is playing a major role in extending the fire season this year.

In our quest to be a world-class company, SAFCOL held exploratory talks with China Foma, a state-owned forestry machinery manufacturer.

El Niño normally appears every three to six years and causes temperatures to rise astronomically, leading to severe droughts and little to no rain for long periods of time.

Despite the El Niño phenomenon, we can report that our plantations did not experience any disaster fires.

Wishing you all a Merry Christmas and a prosperous New Year!

Warmest regards, Nokuthula

SAFCOL has been in talks with the stateowned China Foma, a forestation machinery manufacturer, about a variety of projects.

The talks included, but were not limited to, enhancing SAFCOL’s business model.

The exploratory talks culminated in the stateto-state cooperation agreements between

South Africa and China to be signed during the 6th Forum on China-Africa Cooperation (FOCAC).

The forum was held in SA on 2 December 2015. Close to 54 heads of states from across Africa attended.

During this event, Chinese President XI Jinping concluded a number of cooperation agreements – worth billions of rands – with the South African President Jacob Zuma to cement economic ties between the two countries.

By Annalize van Wyk

Our vision and mission statement are also being reviewed by the Board. So, watch this space for a new statement reflecting our new strategic direction.

We were also in touch with the processing division as part of following up on the progress made on the upgrading of Timbadola Sawmill project (All this and more in this first edition of SAFCOL News).

of the State Council (SASAC). The purpose of the talks were to promote collaboration and partnership between South African and Chinese state-owned companies on projects of mutual interests.

El Niño extends 2015 fire season

SAFCOL manned an exhibition stall demonstrating the above, together with our value chain. Read more on the WFC in this edition. Also featured is a note from our CEO, Ms Nomkhita Mona.

The talks were about a variety of projects aimed at contributing to the company’s growth as stated in our business model.

NOVEMBER-DECEMBER | 2015

Front row: Tebogo Moshoe, Mashilo Seanego, Phephi Sandleni, Chantelle Sieling; Second row: Thabang Zinyoka, Andries Themba, Khwezi Mchunu, Tshilidzi Mavhungo; Third row: Paul Wainright, Khaya Buthelezi, Nokuthula Makaringe, Maphutha Maubane; Fourth row: Hendry Seteria, Christopher Pickup, Bathobile Gabela; Back row: Lentsoe Potsane, Nkgadimeng Ramela, Puseletso Mompei, Thabo Moloi

An inaugural meeting for the new Communications Committee (CC) was held on the 19th of November 2015 at the Lakenvlei Lodge, Belfast, Mpumalanga.

The meeting was attended

by 18 representatives from various business units within SAFCOL.

the flow of information from management to employees and vice versa.

The CC will ensure that all communication initiatives are supported by all internal stakeholders and improve

For all your communicationrelated queries, please do not hesitate to contact your representives.

Editorial Team Khaya Buthelezi, Nokuthula Makaringe, Nkgadimeng Ramela, Maphutha Maubane and Khwezi Mchunu Contributors: Annalize van Wyk, Shirley Mathe and Niel Gouws Letters to the editor Do you like the “new look” of your newsletter? Please let us know and write to us at communication@safcol.co.za

But normal fires were experienced in Jessievale and Roburnia, where firefighters continuously fight fires on the Swaziland boarder, where large communities stay.

Fire also broke out due to lightning in the plantations or grasslands where it is too dry.

Drought has been on our doorstep for some time. The weather forecast predicts that the first good rains will only arrive between February and March 2016. The August winds are two months late. Winds play a major role in exacerbating fires.

Contact numbers for fire emergency: Ben Bothma – Fire Risk Manager: 083 6751153; and Annalize van Wyk – Fire Risk Officer: 078 801 0487

‘El Niño has extended the fire season to unreasonable levels this year

NOVEMBER-DECEMBER | 2015

4 | COMPANY NEWS

A warm welcome to our new Board – we are fully behind you!

5 | COMPANY NEWS

NOVEMBER-DECEMBER | 2015 SAFCOL

SAFCOL

Dr P Mbiji Mahlangu Experience: • Director and Head: International Affairs (University of Fort Hare); • Director and Head: Centre for Transdisciplinary Studies (University of Fort Hare); and • Director: Faculty Quality Assurance (University of Fort Hare).

Academic qualifications: PhD in Educational Leadership, Management and Development, Curriculum and Instruction and Philosophy and History of Education (New Mexico State University, USA); M.Ed in Education in Third World Countries and Political Economy (University of the Witwatersrand), and B. Ed in Education in Third World Countries and Political Economy (University of the Witwatersrand).

Dr Pulane Elsie Molokwane Experience: Dr Molokwane is a nuclear and environmental specialist. She is a board member of the following organisations: • Inkomati Usuthu Catchment Management Area, Nelspruit, Mpumalanga • Sedibeng Water, Bothaville, Free State • Crescent Wood Home Owners Association Academic qualifications: PhD in Chemical Technology (Environmental), Environmental Engineering, Department of Chemical Engineering (University of Pretoria); M.Sc. in Applied Radiation Science and Technology (University of North West), and Post-graduate Diploma in Applied Radiation Sciences and Technology (University of North West).

Mr Stanley Mandla Mnguni Experience: Mr Mnguni has held the following positions: • Deputy Municipal Manager, Steve Tshwete Local Municipality; • Acting Municipal Manager, Steve Tshwete Local Municipality; and • Senior Manager: Legal and Administration, Steve Tshwete Local Municipality.

Academic qualifications: Leadership Development Program (NQF L 6) – GIBS (University of Pretoria); B. Admin (Honours) (University of Limpopo), and B. Admin (University of Limpopo).

Christiaan Theron, Dr Mbiji Mahlangu, Phumzile Ngwenya, Lungile Mabece, Nazia Carrim, Jacob Rachidi and Dr Pulane Molokwane.

Absent from the picture: Mandla Mnguni and Sakekile Baduza

Cabinet announced the appointment of SAFCOL’s new Board a few months ago and it was duly installed in office by Public Enterprises Minister Lynne Brown during a special annual general meeting in Cape Town on 17 August 2015. This follows the end of a three-year term of the previous Board. The day was also marked by the tabling of the 2014 - 2015 Integrated Report to the minister.

Chairperson: Mr Rudolph Lungile Mabece Experience: Mr Mabece has extensive experience in the legal, consulting, and corporate environments. Some of his most recent jobs include being the: • Director of Nanobiz Leadership Development & Consulting; • Director of RCC Ready Mix (Pty) Ltd; and • Director of Bulumko Corporate Advisors and Consultants (Pty) Ltd. Academic qualifications: B.Proc (University of the Western Cape); LLB (University of the Western Cape), and Higher Certificate in Project Management (Damelin Management School).

Ms Caroline Phumzile Mavasana Ngwenya Experience: Ms Ngwenya has spent most of her career in the public service, particularly focusing on socio-economic issues. Her previous positions include being: • Manager of Corporate Social Investment, Mondi Limited; • Programme Manager, eThekwini Municipality; and • Acting Manager: SMME and Community Economic Development, eThekwini Municipality.

Academic qualifications: Masters Degree in Development Studies (University of KwaZulu-Natal); Certificate in Policies for the Promotion of Small and Medium Enterprises (Japan International Corporation Agency/JICA), and BA (Social Work) (University of Durban Westville – now University of KwaZulu-Natal).

Mr Gabriel Christiaan Theron (Harvey) Experience: Mr Theron has extensive experience in global markets, technology and corporate finances, in the following positions: • Managing Director, Prosperosa Consulting (Pty) Ltd; • Director, Luuk (Pty) Ltd; and • Senior Internal Auditor, South African Breweries (SAB).

Academic qualifications: B.Com Informatics Degree (University of Pretoria), and B.Com (Hons.), Internal Auditing Degree (University of Pretoria).

Ms Nazia Carrim Experience: Ms Carrim has a strong background in law, focusing on property and labour law and Public Finance Management Act, in the following positions: • Part-time Commissioner at CCMA, Polokwane; • Non-executive Director on the Eskom board, and • Director: Nazia Carrim Attorneys.

Academic qualifications: Masters in Law (University of Limpopo) and LLB (University of Johannesburg).

Ms Sakekile Baduza Experience: Ms Baduza has excelled in the following positions: • Group Tax Manager, Sun International; • Direct Tax Specialist, ABSA; and • Risk and Recoveries Manager, South African Breweries (SAB).

Academic qualifications: Chartered Accountant (South African Institute of Chartered Accountants/SAICA); B.Comm. (Accounting Sciences) Honours and Certificate in the Theory of Accounting (University of Pretoria), and B.Comm (Accounting Sciences) (University of Pretoria).

Mr Maroale Jacob Rachidi Experience: Mr Maroale has held the following positions: • CEO, Tetelo Computer Services; • CEO, KTS Technology Solutions; and • MD and Chairman, Kganya Technology Solutions Academic qualifications: Management Development Programme (MDP) (Wits Business School); Computer Operations and Programming (Control Data Institute), and Primary Teachers’ Certificate (Sekhukhune Training College).

NEW BOARD HITS GROUND RUNNING

Already the new Board has been hard at work, among other things, reviewing our corporate strategy and preparing the company’s corporate plan in time for submission to the Department of Public Enterprises in February next year.

Also, the Board has reviewed the vision, the mission and values of SAFCOL to ensure that they reflect the new strategic direction of the business.

In line with the new strategic direction, the Board also reviewed key projects and prioritised them into short-, medium- and long-term projects that will see SAFCOL diversifying into new markets, improving its product offering to bolster its revenue and profit margins.

The Board has also visited a number of SAFCOL operations to famaliarise themselves with the business and see where they can add value for the next three years of their term in office.

Revised Vision, Mission & values Vision

“A world leader in integrated forestry products business, powering sustainable growth and creating wealth through partnerships with communities”.

Mission Statement • Dedicated to growing our business in the forestry value chain and maximising stakeholder value.

• Driven by an unwavering commitment to facilitate sustainable economic empowerment of communities and wealth creation.

Revised Strategic Drivers Strategic Driver

Financial sustainability Financial

Cutting-edge operations & processes

Human capital & transformation

Values • We respect and value our stakeholders.

• We are passionate about our business and communities.

• We conduct ourselves with honesty and integrity.

• We strive for excellence and innovation.

Satisfied customers and stakeholders

Ke

• • • • • • • • • • • • • • • • • •

6 | COMPANY NEWS

NOVEMBER-DECEMBER | 2015

7 | INTERNATIONAL EVENT

NOVEMBER-DECEMBER | 2015

Timbadola old electronics upgraded SAFCOL

SAFCOL

Green Hands give away school shoes and blankets Joy after the Green Hands and Emakhazeni staff handed school shoes Belfast, Mpumalanga

Following the Board’s approval in 2014, giving SAFCOL management the go-ahead to increase the processing capacity of its logs into lumber, the upgrade of Timbadola Sawmill has begun in earnest with the replacement of outdated electronics.

The modernisation of Timbadola is part of SAFCOL’s strategic objectives to bolster revenues and increase profit margins. The Sawmill was built around the 1950s and most of the equipment is very old with outdated technology. The electronic parts have become obsolete and the spares are no longer available, both in SA and globally.

Since the upgrade plan is a long term project, the age of the plant poses risks of equipment failure and low plant availability (currently averaging 65% whereas industry norm is 75%+).

A decision was taken to do a mini electronics upgrade project for the primary and secondary saw lines in the wetmill for the purpose of equipment stability and risk mitigation, hence the upgrade of the Optimizer Board Edger, Bandsaw and Chipper Canter units. Sawmill Engineer Andries Nethononda said, “The reason

for the upgrade is to ensure that we get optimum plant availability. The electronics are outdated and not user-friendly in terms of fault finding and we also struggle to get spares.”

“Modern sawmills have diagnostic and prognoses functions incorporated into their equipment design, which can be diagnosed and debugged by a technician off-site anywhere in the world through our network.

This is world class standards and it is what we require.”

Andries also outlined the positive outcomes as a result of the upgrade. “It now features fault diagnostics which will assist artisans to fix faults within a shorter turnaround time.”

He added, “The new designs use scanner heads coupled with cameras used in the automotive industry for precision assemble lines. The cameras are more reliable and durable than the old system which operated on expensive intensive lighting globes.

The biggest benefit will be improved equipment reliability, the availability of spares and also backup service.” The upgrade on the Chipper Canter machine was mainly on

the hydraulic system and electronics. The operation remains basically the same but new cylinders with absolute encoders were installed.

“The electronics upgrade will bring about stability on the electronics functioning and we expect small improvements on uptime and backup service. Overall the challenge still remains that the plant is old with a lot of mechanical failures and poor flow on materials handling. There is a need to modernise the whole sawmill as maintenance costs are soaring and above industry norms, which is indicative of the equipment condition and age”, concluded Aubrey Kwamba, Timbadola Sawmill Manager.

Timbadola Sawmill is situated in the vicinity of Entabeni Plantation in the Limpopo province.

The mill converts raw material such as logs into finished products in a form of structural lumber (90%) and furniture grades (10%).

The Sawmill is the third-largest customer of SAFCOL in terms of log consumption. Due to the fact that the Sawmill is owned by SAFCOL as a strategic asset, it contributes to log price stability and the sustainability of the far north district plantations.

Baboon damage still a challenge DAMAGE-CAUSING animals generally have a limited impact on forestry plantations as a whole. But rodents can be problematic in the early stages of tree growth, when trees – especially pines – can be ring-barked when the population density of rodents becomes high.

That said, damage caused by Chacma, Papio Ursinius and Hamadryas baboons to commercial forestry plantations, mostly on pine but also eucalyptus (gum trees), has reached significant proportions. The cost of this damage is estimated at more than R100million in Mpumalanga alone.

The increasing damage has caught the attention of plantation managers across the country. These managers have been concerned that this destructive baboon behaviour could spread much wider. The baboon problem of damaging timber has

been around for nearly 50 years. Damage is in the form of the stripping-off of tree barks of all ages, resulting in tree death, wood deterioration and wood deformity.

Saw-log rotations are primarily affected and this is where the financial losses are mostly experienced. Pulp rotations are also beginning to experience damage.

S

and showing appreciation to the elderly. In most cases people, including youth, tend to forget the influence and impact they elderly have had in the lives of their families.

AFCOL, through its Corporate Social Investment initiative, Green Hands, went on the road to deliver some “goodies” to the children and the elderly of Emakhazeni Municipality, near Belfast, in Mpumalanga.

“More than 100 excited elderly people from different wards in Belfast filled up the hall”

School shoes and warm blankets are some of the luxuries that poor communities in South Africa cannot afford.

That’s why the SAFCOL’s Green Hands team teamed up with the staff of Emakhazeni Municipality for a good cause and donated hundreds of blankets and brand new school shoes to deserving community members.

Emakhazeni Executive Mayor Hamzer Ngwenya encouraged learners never to allow their current circumstances determine their future.

The elderly got warm blankets from the Green Hands

The second part of the drive was the distribution of blankets to the elderly in the Belfast area. More than 100 excited elderly people from different wards in Belfast filled up the Siyathuthuka Community Hall. This part of the drive was a way of thanking

The blankets will definitely come in handy when the cold days of Mpumalanga return again in winter.

Previously on our electronic communique, Newsflash, we reported that aircrafts belonging to Working on Fire (WoF) were grounded by the South African Civil Aviation Authority (SACAA).

This was due to a spate of accidents recently involving these planes. The grounding negatively impacted the capacity of forestry companies to fight fires.

However, at a recent Lowveld Fire Protection Association Escarpment (LEFPA) board, representing all forestry companies, a resolution was taken based on current weather conditions to keep the aircrafts on standby until 15 November 2015.

“The cost of this damage is estimated at more than R100-million” Saw-log rotations are at a lower density than pulp rotations, and are harvested at muchlonger intervals than pulp rotations. Damage to 20-or 30-year old trees is a significant loss in terms of potential earnings.

Despite the sweltering Mpumalanga heat, Mayor Ngwenya was still actively and enthusiastically handing out blankets to everyone in the hall.

WoF firefighting planes grounded no more

Picture by: Airplane Pictures

An aerial shot picture of Timbadola Sawmill in Venda, Limpopo Province

During this period, two choppers and two thrush aircrafts will be outsourced from private companies. However, thrush aircrafts will only be used on an ad-hoc basis.

Papio Ursinius male baboon

The grounding of planes had a negative impact on forestry companies

8 | COMMUNITY NEWS

NOVEMBER-DECEMBER | 2015 SAFCOL

SAFCOL Board Chairperson Lungile Mabece, Deputy Minister of Public Enterprises Bulelani Magwanishe, Zulu Princess Sibusile and Nongoma Mayor Councillor Jeremiah Mavundla officially open an Early Childhood Development Centre in Emahhashini, Nongoma

SAFCOL donates school and centre September 12 was a joyous day for the Emahlabenini and Emahhashini communities in Nongoma, northern KwaZulu-Natal.

around the school. Other features include two play-structures, school desks and toys for the ECDC.

SAFCOL Board Chairman Lungile Mabece, and the Deputy Minister of Public Enterprises Bulelani Magwanishe handed over a fully furnished timber frame primary school as well as an Early Childhood Development Centre (ECDC) to the community.

This event meant a great deal to the community as SAFCOL delivered a muchneeded resource. Teachers, pupils and community leaders ululated on the delivery of both the primary school and the ECDC.

The school is situated close to SAFCOL’s Ngome Plantation, which is located 70km on the northeast of Vryheid in the Abaqulusi Local Municipality, in the Zululand District.

The school has six classrooms, an administration and an ablution block. For security purposes, a fence has been erected

On behalf of the Zulu royal family, Princess Sibusile Zulu, daughter of King Zwelithini KaBhekuzulu, expressed her appreciation to SAFCOL and the Department of Public Enterprises for bringing much-needed development to her community.

Representatives from local government and other state-owned entities – such as Transnet,

SA Express and others – were also present to witness the great initiative by SAFCOL.

SAFCOL has always played a vital role in all its operational areas (Mpumalanga, Limpopo and KwaZulu-Natal) by facilitating the economic empowerment of communities and the alleviation of poverty.

The school has enrolled 54 learners in the foundation phase. This number is expected to increase to 430 in January 2016. The development is also expected to create jobs during and post construction phases.

Hazel Banda, Senior Manager: Socio Economic Development, said the company is ready to work with communities willing to work with it.

Match the pictures and win!!!

Stand a chance to win some SAFCOL branded jackets by completing the puzzle below!

How well do you know harvesting operations? Easy or not so easy? Let’s see how many employees can complete the picture puzzle below successfully! It’s simple. Match the picture number with the correct action, fill in the cut-out form and send to communication@safcol.co.za. A winner will be drawn from all the correct entries. Remember to include all your details. Give it a go!

Picture Actions number Felling

Previous Competition WINNER! Kira Ross

Closing date: 30 January 2016

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