SOUTHEM ONLINE

Southern Hemisphere Forest Industry Journal Online news briefs

SOUTHEM Online - Issue 232 – 18 November 2009

Hi and Hola - Welcome to Southem Online Issue 232. All eyes have been on Copenhagen,
where a climate change treaty is due to be signed next month. Or is it? As hopes fade for
the signing of a treaty to replace the Kyoto Protocol, a global investigation has implicated
Australia among countries at the centre of a worldwide lobbying effort by some of the largest
polluting companies. See more below. We have started a new Linked in Group for Forestry
in the Southern Hemisphere where you can share discussions, news and jobs. Feel free to
go to the group web page and join in:
http://www.linkedin.com/groups?gid=2218173&trk=myg_ugrp_ovr

Cheers and Saludas from Down Under

Mike Smith
Editor and Director
Email: info@southem.com
URL: www.southem.com

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sales@southem.com for sponsorship details.

FOREST BUSINESS MASTERS DEGREE ASSISTANTSHIP

The University of Georgia Center for Forest Business announces the availability of a Master
of Forest Resources Graduate Assistantship in Forest Business beginning January 2010. For
details please contact:
Bob Izlar, + 1.706.542.6819, bizlar@warnell.uga.edu
For more information about MFR, MS or PhD degree programs in Forest Business see:
http://www.forestry.uga.edu/h/centers/cfb

For University of Georgia Graduate School admission requirements, please see:

http://www.gradsch.uga.edu

HELI HARVEST LTD PROVIDING AERIAL HEAVY LIFTING SERVICES

Heli Harvest is New Zealand’s leading heavy helicopter operator. The company has vast
experience in heavy lifting tasks, including timber harvesting, firefighting, disaster relief,
construction, vineyard frost protection and cellphone tower installation. Heli Harvest operates
two Mi-8 helicopters. For more information, go to:
http://www.heliharvest.co.nz/index.cfm/

CONTINUING EDUCATION IN FOREST FINANCE AND ECONOMICS COURSE

The Department of Forest and Wood Science, Stellenbosch University, South Africa is
presenting a Precision Forestry Symposium in Stellenbosch from 1 to 3 March 2010. For
detail refer to www.sun.ac.za/forestry or contact Pierre Ackerman at packer@sun.ac.za
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COPYRIGHT NOTICE
Items headlined in SOUTHEM Online are drawn from a number of sources. The source of
the item is quoted, either by publication or organisations in line with the practice of fair
reporting. Items originally published in Spanish are translated by TMS Ltd. Every effort is
made to ensure use of paid wire service material is avoided at all times. Should users wish to
utilise SOUTHEM Online on their own web sites, we request that this is done to accurately
reflect the current layout to ensure attribution is appropriate.

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AUSTRALIA IMPLICATED IN GLOBAL CLIMATE CHANGE LOBBY INVESTIGATION

Australia has been caught up in a global investigation said to have revealed the extent to
which heavy greenhouse polluting companies around the world, employing thousands of
lobbyists, are exerting heavy pressure on governments to weaken climate change laws at
home and slow progress on an international climate agreement in Copenhagen. The Sydney
Morning Herald reported the International Consortium of Investigative Journalists examined
the climate lobby in eight countries including the US, Canada, Australia, India, Japan, China,
Belgium and Brazil. In Australia, 20 companies which had already won the most concessions
from the Rudd Government's emissions trading scheme employed 28 lobbying firms with well
over 100 staff, many of them former politicians, political advisers or government officials.
Globally, companies and their lobbyists were often raising the same widespread fears about
jobs, power blackouts and economic losses unless governments weakened commitments to
combat climate change. For more details, go to publicintegrity.org

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U.S. ENVIRONMENTAL BARRIER CAN IMPACT BRAZIL’S PULP AND PAPER SECTOR
Exports of goods produced by Brazil’s energy intensive manufacturing sectors, including pulp,
are expected to be impacted by a new environmental barrier in the United States, SBS has
reported. The damages will be greater in the sales of iron and steel, cellulose, paper and
aluminium sectors, according to a study prepared for the Federation of the Industries of the
State of São Paulo (Fiesp). SBS said the US House of Representatives approved in June the
Waxman-Markey Law, which establishes emission reduction goals for the US for the first
time.

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ANDRITZ PLANT A BOOST CMPC PULP MILL’S ENERGY EFFICIENCY

International technology Group ANDRITZ will supply and install a High Energy Recovery
Boiler (HERB) and an evaporation plant for CMPC’s pulp mill in Laja, Chile, a company
statement said. The supply also includes the complete instrumentation, control system, and
electrification for the processes delivered. The total value of this order is approximately 100
MEUR (or US$150M). Start-up is scheduled for early 2012. This order is part of an energy
efficiency investment by CMPC to make the Laja pulp mill self-sufficient in green energy and
allowing for a long-term production of 460,000 adt/a. In addition, this investment will lower the
mill’s air and effluent emissions.

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THE HAGUE RULING ON BOTNIA PULPCONTROVERSY TO “FAVOUR URUGUAY”

The International Court of The Hague will rule favourably for Uruguay in the litigation with
Argentina over the Botnia pulp mill constructed on the Uruguayan side of a jointly managed
river, Mercorpress has report Uruguay’s chief attorney in the case, Paul Reichler as saying.
“We anticipate that Uruguay will come out fine with the ruling”, said Reichler who visited the
Botnia pulp mill in Fray Bentos which had been in production for two years. However the
likely outcome did not necessarily mean Argentina would be “left in an uncomfortable
position”.
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RISING COSTS HIT GUNNS PULP PROJECT, TALKS WITH PARTNERS CONTINUE
The Tasmanian timber company Gunns has revealed another massive blow-out in the cost of
its pulp mill project, the ABC has reported. It said the detail was revealed at the company's
annual general meeting. The cost has risen from A$1.5 billion to A$2.5 billion, including
interest. The chairman John Gay told the meeting it could take up to another five years
before it is built, adding that negotiations for finance were continuing with banks and forestry
companies, including the Swedish firm Sodra, which is expected to set stringent
environmental standards around any deal.

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NEW REGS ‘BAN’ FORWARD TRADING IN AUSTRALIAN EMISSION UNITS

The Commonwealth Treasury’s recently unveiled draft Corporations Regulations
amendments effectively banning forward trading in Australian emission units in Australia until
at least after the first auction of AEUs is complete, is expected to have significant effects upon
the market, according to a report on mondaq.com. The article says it is highly unlikely that
the Treasury intended its proposed short-selling restrictions to have this effect, but if the
Regulations are implemented as they appear in the draft, these unintended consequences will
follow. The proposal will effectively prevent operators of emission intensive trade-exposed
activities (EITEs) offering to sell forward AEUs.

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FOREST OWNERS FIRE UP OVER PLANNED BIO-FUEL LEVY

A government decision to make big companies pay for some of their greenhouse gas
emissions when using wood pellets and other biofuels is seen as the last straw by many in
the forest industry. “The rest of the developed world is desperately trying to reduce its use of
fossil fuels like coal and oil. Sustainable biofuels like wood pellets are being strongly
encouraged,” Forest Owners Association chief executive David Rhodes said in a statement.
Mr Rhodes acknowledged that the proposed 5000 tonne threshold meant only a handful of
very large emitters – such as the big pulp and paper mills – would have to buy carbon credits
to cover these emissions, but he said the message sent by the policy came across loud and
clear.

POOLING MAY REDUCE NZU SCHEME RISKS, REPORT

Pooling of risk is being offered as a possible way that the risks involved in carbon
sequestration under a proposed scheme involved government-issued New Zealand Units
may be mitigated. The report, headed “Forestry Insurance, Risk Pooling and Risk Mitigation
Options”, Bruce Manley and Richard Watt of the University of Canterbury for the Ministry of
Agriculture and Forestry. The reports finds the two main risks associated with carbon
sequestration under the NZU regime – the risk of adverse events and the “market risk” – may
be reduced through a system of pooling. The economic and legal issues involved are
examined.

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DOCTORS CLAIM NZ EMISSIONS TRADING SCHEME WILL HURT CHILDREN

Meanwhile, a group of senior doctors in New Zealand have claimed that the intended
changes to the country’s emissions trading scheme (ETS) will not only threaten our future
survival but will be an extravagant waste of public funds, describing the legislation process as
a fiasco, according to a news release from NZ Climate And Health. The doctors, representing
OraTaiao: NZ Climate & Health, a large group of senior doctors and other health
professionals acting to prevent runaway climate change, say that the changes to New
Zealand’s emissions trading scheme will harm health as well as the economy. The doctors’
concerns are among many raised by observers over an estimate by The Treasury of a
NZ$110 billion blow-out in the economic impact of the ETS, largely due to subsidising larger
industry polluters. Scoop.com headlined the release “Medical Advice: ETS changes will
cause forehead-slapping epidemic”.
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CASH FOR CREDITORS STILL IN DOUBT IN GREAT SOUTHERN WIND-UP

Offshoots of the failed Australian agri-investment group Great Southern should be wound up
but administrators Ferrier Hodgson cannot say how much unsecured creditors could receive
in the event of liquidation, The Age newspaper has reported. It reported that Ferrier Hodgson
had said in a report that each of the companies within the Great Southern group was
insolvent and that there had been no acceptable proposal to continue to operate the group.
As such, it was the administrator’s opinion and recommendation that creditors should resolve
that each of the Great Southern Group companies be wound up.

‘ADVISERS’ MAY BE IN GUN OVER FAILED MIS

Meanwhile, The Age earlier reported that Great Southern's administrator had highlighted
more than A$1 million in payments to some of the failed company's advisers that may be
deemed ''unfair'' and clawed back for creditors. Ferrier Hodgson is reported to have said
several professional advisers received payments for services shortly before the company
appointed administrators on May 15, when Great Southern's solvency may have been in
doubt. Liquidators are able to recover pre-administration payments to creditors in certain
circumstances, including if the creditor in question had reasonable grounds to suspect the
group was insolvent. The administrator said the advisers had worked with the company for
extended periods, and were likely to have ''detailed knowledge'' of Great Southern's financial
position. It did not name the advisers given the payments.

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CSIR DEVELOPS NEW TECH FOR LOW-INCOME HOUSING

South Africa’s Council for Scientific and Industrial Research (CSIR) has developed new
technology aimed at benefitting communities which depend on subsidised, low-income
houses in South Africa, Engineering News has reported. The research was funded by the
Department of Science and Technology and was inspired by the growing demand for housing
in South Africa. While much progress has been made with housing, the provision of housing
is a national priority, CSIR president and CEO Dr Sibusiso Sibisi is reported as saying at the
viewing of the low-income experimental house, in Pretoria.

FIRST CERTIFIED PROJECT BENEFITS GREEN BUILDING IN SOUTH AFRICA

Meanwhile, it’s also reported that “green building” is set to get easier, and cheaper, in South
Africa as the local building industry gains experience and becomes increasingly geared to
deliver more environmentally sustainable commercial developments. The comment came
from the team involved in the first certified green building in South Africa, as reported by
Engineering News. Early adopters of green building are pushing the transformation of the
industry, and, importantly, the materials supply chain. Speaking at the roof wetting ceremony
of the Nedbank phase two office building in Sandton, which is the first building in South Africa
to be certified under the Green Star rating tool, GLH & Associates Architects senior executive
partner Xavier Huyberechts told Engineering News Online that on the Nedbank project,
“everything had to be invented, negotiated, and found overseas”.

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CUTS TO NORTH AMERICAN CABLE LOGGING INDUSTRY CHALLENGE FOR NZ

A “significant” and “growing” challenge facing steep country forest harvesting in New Zealand
has been highlighted by Future Forests Research’s Harvesting Logistics. Concerns about the
lack of current applied research being done on the challenges being faced were raised in the
latest edition of Four Corners, the newsletter of the Rotorua, New Zealand, based FFR. One
of the key problems has been found to be that “while other industries are making more use of
mechanisation, automation and remote control to cut costs and improve productivity and
safety, all the North American makers of cable logging equipment have closed and New
Zealand has a very small industry producing logging equipment for steep country”.

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ALTO PARANÁ, FAIMA JOIN FORCES TO BOOST WOOD INDUSTRY SKILLS
Argentina’s wood products industry federation (FAIMA), together with Alto Paraná S.A., has
signed respective agreements with the small and medium enterprises to boost skills in the
country’s wood and furniture sector. FAIMA said in a statement that the sector was selected
to be involved in a programme of professional qualifications to lift manufacturing expertise in
companies. Alto Paraná S.A., which is owned by Chilean forestry group, Arauco, became the
first to join with the government and FAIMA in developing programmes for qualification. Alto
Paraná S.A. is providing funding so that five small- and medium-sized companies in the solid
wood and furniture sector of wood and furniture can introduce workers to the qualification
programs.

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ARGENTINA INVESTING IN EXPERIMENTAL PROGRAM TO PROTECT FORESTS

Argentine President Cristina Fernandez de Kirchner and the Secretary of Environment,
Homero Bibiloni, have an Experimental Program for the protection of Native Forests, which
will have an investment of 97 million pesos. The funds will allow the financing of 110 projects
for the conservation of native forests until 2011. Everybody had spoken of the native forests
but this was the first time that funds had been designated, the President said at the launch,
according to FAIMA News. The experimental program of Management and Conservation of
Native Forests will be driven by the Environment Secretariat in 23 provinces.

UNION BATTLE OVER SUSTAINABLE TIMBER CODES

The independent Green Building Council in Australia is under pressure from state and federal
governments to support an industry-backed sustainable timber standard alongside a strict
international code. A motion at a meeting of forestry ministers, backed by the Construction,
Forestry, Mining and Energy Union, will seek to push the council to accept the alternative
standard which certifies 90 per cent of timber cut in Australia as ''green''.

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PIONEER IN BIOENERGY CROP RESEARCH TO SHARE KNOWLEDGE

Landowners considering the potential of deriving new income from dedicated bioenergy crops
have the opportunity to learn first hand from a leading international expert next month. Dr
Emily Heaton, Assistant Professor of Agronomy at Iowa State University in the United States,
will be sharing her research and experiences at a conference organised by the International
Energy Agency (IEA) Task 30 in to be held in Taupo, New Zealand, in December. “Bioenergy:
Linking Biomass and Technology" will provide an overview of current knowledge in the area
of short rotation crops (SRC) - such as grasses, willows, poplar and eucalypts - grown
specifically for bioenergy. Dr Heaton has pioneered and led research in the United States
comparing the biomass production of Miscanthus and switchgrass, research that indicated
Miscanthus could produce 250% more ethanol than corn, without requiring additional land.

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ARTICLES OF INTEREST

BARK LESION FUNGI ON EUCALYPT STEMS IN URUGUAY

Alonso, Raquel; Tiscornia, Susana; Alfenas, Acelino Couto; Bettucci, Lina. Fungi associated
to bark lesions of Eucalyptus globulus stems in plantations from Uruguay. Revista Árvore
vol.33 no.4 Viçosa July/Aug. 2009.
http://www.scielo.br/scielo.php?script=sci_abstract&pid=S0100-
67622009000400001&lng=en&nrm=iso&tlng=en

GEOGRAPHIC ZONATION AND THE PARAGUAY-PARANÁ BASIN

Rodolphe Spichiger, Clément Calenge, Bastian Bise. Geographical zonation in the Neotropics
of tree species characteristic of the Paraguay-Paraná Basin. Journal of Biogeography.
Volume 31, Issue 9, Date: September 2004, Pages: 1489-1501
http://www3.interscience.wiley.com/journal/118776908/abstract
PORTABLE BANDSAW MILL OPERATIONS PRODUCT COSTS
Aguilera, Alfredo; Inzunza, Luis; Alzamora, Rosa and Tapia, Luis. Production cost evaluation
in portable bandsaw mill operations. Bosque (Valdivia) [online]. 2005, vol.26, n.2, pp. 107-
114. ISSN 0717-9200. doi: 10.4067/S0717-92002005000200013.
http://www.scielo.cl/scielo.php?script=sci_abstract&pid=S0717-
92002005000200013&lng=en&nrm=iso&tlng=en

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SOUTHEM EMPLOYMENT OPPORTUNITIES

GRADUATE FORESTERS
New Zealand forestry service company PF Olsen Ltd is inviting applications from Graduate
Foresters for work commencing January 2010. Positions are based in Rotorua in the
Harvesting Management team and would suit applicants with a B.ForSc or equivalent
resource science degree or diploma and forest management experience. For more
information, info@pfolsen.com

GIS ASSISTANT - PART TIME FLEXIBLE HOURS

Rayonier NZ is inviting applications for the position of experienced GIS Assistant for its
Auckland office. The ideal candidate for this temporary assignment will have an energetic
and motivated approach and the ability to work well in a team environment. Although the
hours will vary you need to be available to work up to 20 hours per week on occasion. For
more information or to apply please contact Gemma Harden on 09 357 9122 or
gemma.harden@rayonier.com

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MEETINGS

FOREST INDUSTRIES CONFERENCE

24-25 November 2009 – Forest Futures, Innovation, Jobs, Investment. The 2009 Forest
Industries Conference will be held in Canberra, Australia. For more details, go to
www.forestworks.com.au

SHORT ROTATION CROPS AND BIOENERGY

2-4 December 2009 – Short Rotation Crops: Linking Technology and Biomass. Taupo, New
Zealand. Organised by the International Energy Agency (IEA) Bioenergy Task 30, supported
by Scion and Pure Power Global. For more info, go to:
www.shortrotationcrops.org/events.htm

FOREST DAY 3
13 December 2009 - Copenhagen, Denmark. So far, this year’s event will see over 100
official negotiators that will be directly involved in shaping the historic Climate Agreement.
They will be joined by more than 100 forest and climate experts from Africa, 150 from Asia
and more than 50 from Latin America. For more information, please contact:
cifor-forestday@cgiar.org
www.forestday3.org

DUBAI WOOD AND WOOD PRODUCTS SHOW

. 13-15 April 2010. Dubai International Wood & Wood Products Show. Dubai Airport Expo.
The WoodShow is the leading specialized show in the Middle East covering the entire wood
industry supply chain including top manufacturers, suppliers, contractors and traders involved
in the wood industry.
http://www.dubaiwoodshow.com/home.php

PARANÁ UNIVERSITY TO CELEBRATE 50 YEARS OF FORESTRY COURSE

30 May 2010 – The Forest Engineering Course at Universidad Federal do Paraná in Brazil
will celebrate 50 years in existence. For more info, go to:
www.fupef.ufpr.br.

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