14 INTEGRATED ANNUAL REPORT 2024 Wood Chipping Operations NCT operates two wood-chipping facilities – NCT Durban Wood Chips (DWC) and NCT Richards Bay Complex comprising NCT Richards Bay Wood Chips (RBWC) and BayFibre. These operations facilitate the export of wood chips to key markets such as Japan, China and others. The strategic positioning of these wood-chip mills not only benefits NCT but also increases access to global markets for a significant portion of South African timber resources, thereby enhancing pricing and financial returns for local timber growers. Early in the financial year under review, RBWC encountered a production setback due to repairs needed for the chipper. However, through a concerted effort headed by NCT plant engineers from both Richards Bay and Durban, the chipper replacement process was expedited, showcasing the synergy and resourcefulness within our facilities. With the support of DWC providing crucial components, the repairs, initially anticipated for late May, were successfully completed by early April 2023. Despite the challenges, the biomass project at RBWC concluded successfully, demonstrating adaptability by utilising mobile chippers during the main chipper’s repair phase. Subsequently, the continuation of the biofuel project post chipper replacement ensured uninterrupted production of Eucalyptus and E. Smithii at the mills. The lessons learned from these experiences have been invaluable, paving the way for the integration of efficiencies into the construction of a second chip line facility at the mill. The procurement of a a chipper and related equipment, led by our plant engineer, further exemplifies our commitment to enhancing operational effectiveness. During the year under review a new stevedoring contractor was appointed. The transition of stevedoring contractors was seamless, with no compromise in operational efficiency. The new contractors unwavering support during the fire in October highlights the strength of collaborative partnerships within our operations. The integration of BayFibre and RBWC operations marks a significant milestone, fostering interchangeability among operational staff, thereby enhancing capacities, operational efficiencies, and service offerings to our suppliers. To mitigate disruptions caused by the fire, Acacia was transitioned from RBWC into DWC. This collaborative effort limited disruption to production under the conditions prevailing. DWC increased production to maximum capacity, given transhipping of timber from BayFibre to DWC daily. Exceptional timber intake months resulted with December 2023 marking the highest log intake for DWC since its inception in 2004. This heightened production enabled the loading of two extra vessels in the financial year, resulting in a record-breaking performance for DWC in terms of tonnes exported. Continuous maintenance by our engineering team and the implementation of a wash station on the DWC log deck have played pivotal roles in achieving and sustaining high production rates. Operational challenges persist, particularly in port logistics. The competition for berth bookings and maintenance issues on port infrastructure necessitate proactive measures. To address these challenges, DWC staff are actively involved in the maintenance of port-owned equipment. By prioritising production efficiency and fostering collaborative integration between mills, NCT is maintaining its key position in global wood-chip supply
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