N E W S & V I E W S • A P R I L 2 0 2 4 5 reclaimers. Much of this work has already had contractors appointed. We expect to have chips on the ground during August on this side too. • RBWC – Eastern side. Once we have both chippers running, we will be able to focus on the eastern side and all the overhead gantries. These need to be sandblasted and painted and the inside conveyor infrastructure replaced. Then we must put them back up and do civil repairs to the columns and stockpile floor. The timeline here is stretching out towards the end of 2024. It’s an incredibly large and complex project, with the work even requiring Construction Work Permits to be able to proceed. Each time a tender award is granted, it also requires the loss assessors to review it and put their stamp on it too. We will update you regularly in coming months, as we target specific milestones and share progress. In the meantime, from a market perspective, Durban Wood Chips (DWC) continues to trade as normal, albeit with the added pressure of taking on extra vessels on behalf of Richards Bay. To date, they have managed two complete vessels for Nippon, our major Richards Bay Japanese customer, and expect to do at least another three before Richards Bay is chipping normally again. They have, unsurprisingly, reported a record year ending February 2024, having exported an amazing 642 000 tonnes. In many ways 2024 would be a very interesting year – if you were simply an observer, that is. We will need to contend with rising costs here in South Africa, from port costs to diesel, from wages to electricity and perhaps, don’t mention insurance costs. On top of that, an extremely unpredictable Rand, and the not insignificant matter of our national elections in May. Quite a tumultuous time to be restoring Richards Bay back to profitability. And in a year we mark our 75th anniversary of existence! Regardless of our own challenges here in South Africa, the market in Japan and China remains in the doldrums and the pressure remains on pulp pricing as global economies continue in a sluggish growth pattern. The pressure on pulp and paper always translates to wood chips too, and we are expecting tough trading conditions to remain in place even as we focus on getting our chipping plants running again. We will commence negotiations with Japan soon, and we will give you feedback as we engage directly with our customers; but our feeling is that we could be in a protracted negotiation cycle as both buyers and sellers alike face challenging market conditions. MANAGER
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