Environmental Impact Assessment Report

E2813 v6

Public Disclosure Authorized

Sichuan Province Jinfu Paper Products Co., Ltd

Technology Reform Project of Pulpmaking System

Public Disclosure Authorized Environmental Impact Assessment Report

Public Disclosure Authorized

Sichuan Province Scientific Research Institute of Environmental Public Disclosure Authorized Protection

September 2011 Sichuan Province Jinfu Paper Products Co., Ltd Technology Reform Project of Pulpmaking System

Environmental Impact Assessment Report

EIA Unit : Sichuan Province Scientific Research Institute of Environmental Protection

EIA Certificate: MEP Certificate (A) 3205

President: Ye Hong, Researcher (License No.: A32050020400) Chief Engineer : Ding Houcan, Senior Engineer (License No.: A32050250700) (Deputy)

Project Manager: Ren Yong, Senior Engineer (License No.: A32050010300)

Compilation Team:

Name Title License No. Tasks Signature Senior Overall control, Project Ren Yong A32050010 Engineer Analysis Environmental Protection Ma Li Engineer A32050055 Measures & Demonstration Jia Li Engineer C32420003 Risks Assessment

Environmental Impacts QiuYuqi Engineer C32420006 Analysis Senior Examination and Liu Yongqi A32050060400 Engineer Verification

Contents General Overview...... 1.1 PROJECT BACKGROUND ...... 1 1.2 COMPILATION BASIS ...... 3 1.3 ASSESSMENT GOALS AND PRINCIPLES ...... 4 1.4 ASSESSMENT LEVELS AND SCOPE ...... 5 1.5 ASSESSMENT ELEMENTS AND METHODS ...... 6 1.6 ENVIRONMENTAL PROTECTION TARGETS AND SENSITIVE POINTS ...... 6 1.7 ASSESSMENT STANDARDS ...... 8 2 Analysis of Substitute Plan and Technology Reform...... 12 2.1 C OMPARATIVE ANALYSIS OF THE EXISTING PROJECT AND TECHNOLOGY REFORM ENGINEERING .12 2.2 COMPANY STATUS QUO AND PROJECTS UNDER CONSTRUCTION ...... 22 2.3 A NALYSIS OF THE PROJECT CONSTRUCTION ENGINEERING AND ANALYSIS ON THE PROCESSES COMPARED WITH THOSE OF SUBSTITUTE EQUIPMENTS ...... 43 2.4 CONSISTANCY TO INDUSTRIAL AND ENVIRONMENTAL POLICY AND PLANNING ...... 75 2.5 WASTE GENERATION , EMISSION AND CONTROL MEASURES AFTER THE PROJECT ...... 76 3 Overview of nature and society in the project area ...... 90 3.1 OVERVIEW OF NATURAL ENVIRONMENT ...... 90 3.2 O VERVIEW OF SOCIAL ENVIRONMENT ...... 96 4. The monitoring, investigation and assessment of the current environmental status98 4.1 THE CURRENT STATUS OF SURFACE WATER ENVIRONMENT ...... 98 4.2 THE CURRENT STATUS OF GROUNDWATER ENVIRONMENT ...... 100 4.3 T HE CURRENT STATUS OF AMBIENT AIR QUALITY ...... 101 4.4 T HE CURRENT STATUS OF THE QUALITY OF ACOUSTIC ENVIRONMENT ...... 102 4.5 M ONITORING OF POLLUTION SOURCES ...... 104 4.6 T HE NEWLY -ADDED CONTENT FOR THE MONITORING OF ENVIRONMENTAL STATUS IN THIS EIA ..106 4.7 I NVESTIGATION OF THE CURRENT STATUS OF CORPORATE ENVIRONMENTAL MANAGEMENT AND ASSESSMENT ...... 107 5. Environmental impact prediction and assessment ...... 108 5.1 T HE ANALYSIS OF ENVIRONMENTAL IMPACT DURING CONSTRUCTION PERIOD ...... 108 5.2 THE ANALYSIS AND PREDICTION OF THE IMPACT ON SURFACE WATER ENVIRONMENT DURING OPERATION PERIOD ...... 112 5.3 THE ANALYSIS OF THE IMPACT ON GROUNDWATER ENVIRONMENT ...... 116 5.4 THE ANALYSIS OF THE IMPACT ON ATMOSPHERIC ENVIRONMENT DURING ...... 116 OPERATION PERIOD ...... 116 5.5 T HE PREDICTION OF NOISE IMPACT DURING OPERATION PERIOD ...... 117 5.6 T HE ANALYSIS OF THE ENVIRONMENTAL IMPACT OF SOLID WASTES ...... 117 5.7 S UMMARY OF ENVIRONMENTAL IMPACT ASSESSMENT OF THIS PROJECT ...... 118 6. Mitigation Measures for Environmental Impact of Project...... 118 6.1 E NVIRONMENTAL PROTECTION MEASURES APPLIED DURING THE CONSTRUCTION PERIOD ...... 118 6.2 W ASTEWATER TREATMENT MEASURES AND ILLUSTRATION DURING OPERATION PERIOD ...... 119 6.3 F LUE GAS PREVENTIVE MEASURES DURING PROJECT OPERATION PERIOD AND ILLUSTRATION OF IT . 127

6.4 M EASURES ON SOLID WASTE PREVENTION AND MANAGEMENT DURING OPERATION PERIOD AND ILLUSTRATIONS OF THEM...... 129 6.5 N OISE PREVENTIVE MEASURES DURING THE OPERATION PERIOD AND ILLUSTRATION OF IT ...... 130 6.6 S UMMARY OF ENVIRONMENTAL PROTECTION MEASURES ...... 130 7. Cleaner production Analysis ...... 7.1 C LEAN FEATURES OF THE PROCESS ...... 133 7.2 A NALYSIS ON CLEANER PRODUCTION LEVEL ...... 133 7.3 I MPLEMENT THE WAYS AND SUGGESTIONS FOR CLEANER PRODUCTION FURTHER ...... 137 8. Safe discharge and total quantity control of the Project ...... 138 8.1 A NALYSIS ON SAFE DISCHARGE OF THE PROJECT ...... 138 8.2 P LAN FOR TOTAL AMOUNT CONTROL OF ENTERPRISE ...... 141 9Environmental Risk Assessment ...... 9.1 I DENTIFICATION FOR MAJOR HAZARD SOURCES ...... 143 9.2 F EATURES OF MAJOR INDUSTRIAL CHEMICALS USED IN THE PROJECT ...... 143 9.3 I DENTIFICATION OF THE MAXIMUM CREDIBLE ACCIDENT AND ENVIRONMENTAL RISK ANALYSIS 144 9.4 P REVENTION MEASURES ON ENVIRONMENTAL RISK ...... 144 9.5 E MERGENCY PLAN FOR RISK ACCIDENT ...... 145 9.6 C ONCLUSION OF RISK ASSESSMENT ...... 146 10 Economic Cost-benefit of Environmental Impact...... 147 10.1 E CONOMIC BENEFIT ANALYSIS ...... 147 10.2 S OCIAL BENEFIT ANALYSIS ...... 148 10.3 C OST -BENEFIT ANALYSIS ...... 148 11 Public Participation ...... 11.1 P URPOSE AND ROLE ...... 149 11.2 M ETHODS AND PRINCIPLES ...... 150 11.3 S URVEY RESULTS ...... 152 11.4 T HE ENTERPRISE ’S ENVIRONMENTAL IMAGE AND WAYS OF ...... 154 11.5 C ONCLUSION OF PUBLIC SURVEY ...... 155 12 Suggestions on Implementing Environmental Monitoring to project...... 156 12.1 E NVIRONMENTAL MANAGEMENT ...... 156 12.2 E NVIRONMENTAL MONITORING ...... 157 13 Conclusions and Suggestions...... 13.1 C ONCLUSIONS ...... 158 13.2 S UGGESTIONS ...... 163

Tables

Table 1: Project Assessment Scope...... 6 Table 2: Main Targets of Environmental Protection and Focal Points ( ≤5km)...... 8 Table 3: Environmental Atmosphere Assessment Standard Unit: mg/Nm 3 ...... 9 Table 4: Quality Standard for Surface Water Environment...... 9 Table 5: Quality Standard for Ground Water Environment...... 9 Table 6: Quality Standard for Acoustic Environment (GB3096-2008)...... 10 Table 7: Standard for Discharge of Water Pollutants from Pulp Paper Making Industry (GB3544-2008) Unit: mg/L ...... 10 Table 8: Standard for Emission of Atmospheric Pollutants from Boiler...... 10 Table 9: Standard for Emission of Atmospheric Pollutants from Industrial Boiler & Kiln ...11 Table 10: Standard for Emission of Stink Pollutants ...... 11 Table 11: Standard for Noise Emission at Boundary ...... 11 Table 12: Projects of Technology Reform by Jinfu Company ...... 13 Table 13: Contents of Technology Reform for the Project...... 15 Table 14: Jinfu Company’s Ongoing Projects of Technology Reform for Energy Saving.....16 Table 15: Post-Technology Reform Project Components and Main Environmental Problems ...... 18 Table 16: The Layout of the Company Products...... 23 Table 17: Current Situation of Generation and Treatment of Wastewater by Jinfu Company29 Table 18: The Results of Wastewater Treatment at Existing Stations ...... 30 Table 19: Summary of the Emission of “Three Wastes” from the Plant ...... 33 Table 20: GB3544-2008 Requirements for Emission of Pollutants by Pulp and Paper Manufacturers ...... 34 Table 21: The Results of Environmental Protection Check and Acceptance of Wastewater Monitored at the Outlets of the Wastewater Treatment Station (July 2011, Unit: mg/l) 35 Table 22: Monitoring Report for Environmental Protection Check and Acceptance of the Finished Construction Project-Alkali Recovery Furnace Flue Gas ...... 36 Table 23: Monitoring Report for Environmental Protection Check and Acceptance of the Finished Construction Project---35t/h Boiler Flue Gas...... 37 Table 24: Monitoring Report for Environmental Protection Check and Acceptance of the Finished Construction Project---Uncontrollable Emission Unit: mg/m 3...... 38 Table 25: Generation and Discharge of Wastewater from the Plant after the Ongoing Project Construction...... 40 Table 26: Jinfu Company’s Current Volume of Pollutants Discharge and the Volume of Pollutants Discharge after the Implementation of the Ongoing Project of Technology Reform ...... 42 Table 27: Types of Soup and Replacement Liquor Used for Different Stages of Cooking....49 Table 28: Types of Soup and Replacement Liquor Used in Different Stages of Cooking (Cont’d)...... 50 Table 29: The main pulping technology indicators before and after technological transformation...... 59 Table 30: Major technical indicators concerning chlorine dioxide production...... 64 Table 31: The comparison table of main raw materials and power consumption before and after technological transformation ...... 65

Table 32: The table of raw materials and power consumption of the new chlorine dioxide plant in this technological transformation...... 66 Table 33: Water balance of the whole plant after the project ...... 69 Table 34: Waste water generated and treatment within the project...... 78 Table 35: Waste water generated and treatment from pulping workshop before the project .78 Table 36: Waste water generated from other workshops and treatment out of the project ....79 Table 37: Treatment in wastewater station of Jinfu Company after project implementation.79 Table 38: Waste gas generation and discharge of various workshops within the range of technical reconstruction ...... 83 Table 39: Waste gas generation and discharge of other workshops outside the range of technical reconstruction ...... 84 Table 40: Generation and treatment of solid wastes in the project ...... 85 Table 41: Statistics of noise intensity of main equipment producing noises in the project unit : dB(A) ...... 86 Table 42: Summary and comparison on three wastes discharge of pulping and chemical workshop before and after project implementation...... 86 Table 43: Summary of three wastes discharge before and after project implementation...... 87 Table 44: “Three Accounts” Analysis on Pollutants Discharge of Jinfu Company...... 89 Table 45: Monitoring of surface water quality and results Unit: mg/L...... 99 Table 46: The monitoring point fro groundwater quality...... 100 Table 47: Groundwater quality monitoring results Unit: mg / L...... 100 Table 48: The assessment results concerning groundwater quality...... 100 Table 49: The layout of ambient air monitoring points...... 101 Table 50: The monitoring statistics of ambient air quality status and the assessment results ...... 102 Table 51: Distribution of noise monitoring points ...... 102 Table 52: Monitoring results of the noise status Unit: dB ( Α) ...... 103 Table 53: Monitoring results concerning organized emissions of waste gases and assessment ...... 104 Table 54: The sewage monitoring table for the inlet and outlet of the waste water station Unit: mg / L ...... 105 Table 55: The monitoring results of the groundwater quality on white mud dreg site Unit: mg/L...... 106 Table 56: Statistical data of hydrological parameters for assessing the reach during the low- flow season...... 112 Table 57: The intensity of abnormal emission of pollutants in wastewater of this project ..113 Table 58: The prediction result of impact of abnormal discharge of COD of the project on the water quality of the Dadu River (unit: mg/l)...... 114 Table 59: Wastewater Production and Disposal within the Range of Technical reconstruction ...... 120 Table 60: Wastewater Production and Disposal of Pulping Workshop before the Technical reconstruction...... 121 Table 61: Wastewater Production and Disposal of other Workshop outside the Range of Technical reconstruction ...... 121

Table 62: Treatment Conditions of Jinfu Wastewater Treatment Station after Implementing the Project ...... 123 Table 63: Waste gas generation and discharge of various workshops within the range of technical reconstruction ...... 127 Table 64: Waste gas generation and discharge of other workshops outside the range of technical reconstruction ...... 128 Table 65: Environmental Protection Measures and Investment of the Project...... 130 Table 66: Comparison between cleaner production level of the whole factory and cleaner production standard on bleached kraft pulp after technical reconstruction...... 134 Table 67: Comparison between the Project and the Cleaner Production Standard Index System for Pulp & Papermaking (on trial)...... 136 Table 68: Standard on discharged wastewater of the Project (B3544-2008) ...... 138 Table 69: Table 8-2: Standard on Boiler Flue Gas Discharge in the Project...... 138 Table 70: Discharge Standard as required in “Environment, Safety and Health Guidelines” of the World Bank Group ...... 139 Table 71: Generation and predicted discharge of main pollutants of enterprise ...... 140 Table 72: Main Pollutants Discharge of Jinfu Company after Project Implementation...... 141 Table 73: Prevention measures on risk accidents of the Project ...... 145 Table 74: Emergency Environmental Monitoring Plan...... 146 Table 75: Main economic indicators of project...... 147 Table 76: Public participation survey form on environmental protection of project construction...... 151 Table 77: occupation and education background composition of public respondents ...... 152 Table 78: Public participation and survey results...... 153

Figures Figure 1: Current Process flow of Jinfu Company...... 24 Figure 2: Current Puplmaking Process and Waste Water Generation Links of Jinfu Company ...... 25 Figure 3: Process Flow of the Wastewater Treatment Station...... 32 Figure 4: Diagram of the Plant’s Steam Balance after the Ongoing Project of Technology Reform Unit: t/d...... 41 Figure 5: Jinfu Company’s Process Flow after Technology Reform ...... 44 Figure 6: Jinfu Company’s Process Flow before Technology Reform...... 46 Figure 7: Process Flow of Raw Material Preparation and Pollutants Generation Links...... 48 Figure 8: Process Flow of Pulpmaking After Technology Reform ...... 52 Figure 9: The technological process of washing, screening...... 57 Figure 10: The technological process of pulp-making before...... 58 Figure 11 ...... 63 Figure 12: Water balance of the whole plant after the project Unit: t/d ...... 66 Figure13: Water balance of the whole plant before the project Unit: t/d ...... 67 Figure 14: Pulp water balance after the project (as 1t bleached bamboo pulp) ...... 70 Figure 15: Pulp water balance before the project (as 1t bleached bamboo pulp)...... 71 Figure 16: Balance of raw bamboo material in pulping workshop after the project (as absolute dry) Unit: t/a ...... 72

Figure 17: Balance of raw bamboo material in pulping workshop before the project (as absolute dry) Unit: t/a ...... 73

Figure 18: Caustic soda balance after the project (as Na 2O) unit: t/a ...... 73 Figure 19: Sulfur balance after the project (as S) unit: t/a ...... 74 Figure 20: Steam balance after the project unit: t/h ...... 74 Figure 21: Steam balance of current plant unit: t/h...... 75 Figure 22: Process applied in wastewater station ...... 81 Figure 23: Treatment Process of wastewater treatment station of enterprise...... 124

Map 1: Location of the Company

Map 2: Project Location

Map 3: Monitoring Sampling Sites

Map 4: Hydrological Map

General Overview

1.1 Project Background 1) Company profile Sichuan Province Jinfu Paper Products Co., Ltd (“Jinfu Company”) is a private enterprise with the registered capital of RMB0.25bn and located in Yangjiawan, Fulu Township, Shawan District, Leshan City, occupying a land area of 12.13 hectare (182 mu). The current capacity of pulp making and paper making is 52,000 ton/year and 57,000 ton/year respectively, all the bleached bamboo pulp is made for self production only. The main products of the Company include bleached pulp paperboard, cultural paper and hygiene raw paper.

Until 1999, the Company’s name was Leshan City Hygiene Paper Plant (Fulu Plant), which was changed into Sichuan Province Leshan City Fuhua Paper Business Co., Ltd after being purchased by Sichuan Fuhua Group in 1999, and changed into Sichuan Province Jinfu Paper Products Co., Ltd after the reform in 2009, being used until today.

2) Brief review of the Company history During the past ten years as of 1999, due to the Central Government’s vigorous control of pollutants discharge by papermaking industry, enterprises have grown stronger and more sustainable while actively conducting pollutants treatment. In 2004, the pulp and paper production capacity reached 52,000 ton/year and 57,000 ton/year respectively, including the processes of chemical pulp making, paper making, alkali recovery, wastewater process in mid section, paper making machine white water reuse. According to the requirements of the environmental protection department, Jinfu Company has obtained all documents required for environmental protection: the EIA Report for the “Project of 52,000 T/A Pulp and 57,000 T/A Paper Production and Supporting Construction” has been approved by Sichuan Provincial Environmental Protection Bureau in [2010] Order No.479. The construction of phase-1 environmental protection facilities as approved in the Order has been finished on time and the wastewater discharge to reach standard has been realized. In September 2010, the environmental protection check and acceptance by Sichuan Provincial Environmental Protection Bureau signified the requirement of time-limit treatment specified in MEP Order [2010] No. 95 has been met.

At present, Jinfu Company has finished phase-2 reform approved by Sichuan Provincial Environmental Protection Bureau in [2010] Order No.479, i.e., the requirement for wastewater discharge to reach standard GB3544-2008 (II), effective as of July 1, 2011 for non-bleaching wood pulp and paper manufacturers.

Jinfu Company is conducting the construction for the “Project of Technology Reform for Energy Saving and Emissions Reduction”, designed for the reform of alkali recovery system and boiler system, which has registered at Leshan Municipal Commission of Economy and Information Technology in October 2010 (Registration no. [2010] 11), and the EIA Report has been approved by Leshan Municipal Environmental Protection Bureau in March 2011 (Leshan Huanshen [2011] 26), in

1 addition, the reform of the alkali recovery system and boiler system shall be finished by the end of this year. 3) Original basis and significance of the Project The development of Jinfu Company is basically a process of synchronous production and reform. The existing production equipments are partially out of date and inefficient, causing large amount of resources and energy consumption, higher production cost and pollutants generation, which is contradicting with the increasingly strict industrial policies and cleaner production demand. Meanwhile, if the techniques and equipments of the existing pulp making system cannot be upgraded fundamentally, the sole reliance on terminal treatment shall not help the Company to reach the “Standard for Water Pollutants Discharge from Pulp and Paper Making Industry” (GB3544-2008) in a real sense and for a long term, the survival and development of the Company shall be hindered greatly.

In order to reach the standard, Jinfu Company is planning to implement the “Project of Technology Reform for Energy Saving and Emissions Reduction in Pulp Making System” for the reform of boiling and bleaching technique upgrading. Through the implementation of the Project, the volume of water consumed by the Plant has been reduced, in addition to the reduced generation of mid- section wastewater from the source (the reduction of “ton pulp benchmark water discharge”) and the reduction of the generation AOX and flue gas. Based on these reductions, Jinfu Company shall be able to reach the new standard for wastewater discharge in a long term and stable manner. The capacity of pulp and paper production shall remain the same after the technology reform .

The Project has been registered at Leshan Municipal Commission of Economy and Information Technology (Registration no. [2010] 11). Through the implementation of the technology reform project, the overall level of the production technology of Jinfu Company shall be improved, the Company’s cleaner production shall also be improved to a new level, the volume of energy and material consumption has been reduced, the discharge of wastewater has been stabilized for a long term below the limit specified in GB3544-2008 (II) effective as of July 1, 2011, the generation and discharge of POPs with wastewater (such as AOX, dioxin) and stink pollutants (unique in papermaking industry) has been effectively reduced, in addition, the environmental risks brought by the use of liquid chlorine has been eliminated. Due to the Project construction, plus the other technology reforms previously finished, the Company’s non-wood pulp paper making technology shall become the most advanced in China. The social and environmental benefits of the Project are significant.

According to the “Environmental Protection Law of the People’s Republic of China”, the “Environmental Impact Assessment Law of the People’s Republic of China” and the State Council Order No. 253, environmental impact assessment shall be conducted for the Project of Technology Reform for Pulp Making System of Sichuan Province Jinfu Paper Products Co., Ltd. The task of environmental impact assessment has been consigned to Sichuan Province Scientific Research Institute of Environmental Protection. After accepting the consignment, the Institute began to conduct environmental impact assessment with the cooperation of the relevant local departments and finished the preparation of the Environmental Impact Report through field investigation, data collection, comparative research, engineering analysis, public

2 survey, environmental monitoring and impact prediction and analysis. The Report, upon the approval, shall be used as the basis for environmental management by the authorities and the design of environmental protection for the Project.

1.2 Compilation Basis

Environmental protection laws and regulations 1) “Environmental Protection Law of the People’s Republic of China” (December 26, 1989) 2) “Environmental Impact Assessment Law of the People’s Republic of China” (September 1, 2003) 3) “Law of the People’s Republic of China on the Prevention and Control of Atmospheric Pollution” (September 1, 2000) 4) “Law of the People’s Republic of China on the Prevention and Control of Water Pollution” (June 1, 2008) 5) “Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution Caused by Solid Waste” (April 1, 2005) 6) “Law of the People’s Republic of China on the Prevention and Control of Environmental Noise Pollution” (March 1, 1997) 7) “Law of the People’s Republic of China for Promotion of Cleaner Production” (January 1, 2003) 8) “Law of the People’s Republic of China on Work Safety” (June 29, 2002) 9) “Management Rules for Environmental Protection of Construction Projects”, State Council Order No. 253 10) “Safety Management Rules for Hazardous Chemical”, State Council Order No. 344 11) “Decision of the State Council on Implementing Scientific Development Outlook and Strengthening Environmental Protection”, State Council Guofa [2005] 39 12) National Development and Reform Commission “Guidance Catalogue for Adjustment of Industry Structure (2011)” 13) “Opinions of Sichuan Province People’s Government on Implementing the ‘Decision of the State Council on Implementing Scientific Development Outlook and Strengthening Environmental Protection’” (Chuanfufa [2007] 17) 14) “Sichuan Province Management Rules for Protection of Drinking Water Sources”

Relevant regulations and technical guides 1) World Bank Group “EHS Guidelines for Papermaking Industry” 2) “Technical Guidelines for Environmental Impact Assessment---General Rules” (HJ/T2.1-93) 3) “Technical Guidelines for Environmental Impact Assessment--- Atmospheric Environment” (HJ2.2-2008) 4) “Technical Guidelines for Environmental Impact Assessment---Surface Water Environment” (HJ/T2.3-93) 5) “Technical Guidelines for Environmental Impact Assessment--- Acoustical Environment” (HJ2.4-2009)

6) “Technical Guidelines for Environmental Impact Assessment---Ground Water Environment” (HJ 610-2011) 7) “Technical Guidelines for Environmental Risk Assessment for Construction Projects” (HJ/T169-2004) 8) “Technical Standard for Prevention and Control of Urban Area Dust Pollution” (HJ/T393-2007) 9) “Provisional Measures for Public Participation of Environmental Impact Assessment”, SEPA (Huanfa [2006] 28) 10) “Environmental Protection Rules for Construction Projects of Light Industry” (QBJ35-94) 11) “Comments of the State Council on the Problems Related to Ministries Concerning Acid Rain Control Areas and SO2 Pollution Control Areas” (Guohan [1998] 5) 12) “Plan for Prevention and Control of Water Pollution in the Three Gorges and the Upper Reach” (2008 Revision) 13) “Notice Concerning the Opinions on Strengthening the Work of Industrial Water Conservation”, State Economic and Trade Commission, etc., (SETC [2000] 1015) 14) “Opinions on Strengthening Environmental Protection for Construction Projects in Western Region Development”, (SEPA Huanfa [2001] 4) 15) “Water Consumption Quota---Part V: Papermaking Products” (GB/T18916.5-2002) 16) “Development Policies for Papermaking Industry”, (NDRC Announcement [2007] 71) Relevant documents 1) Feasibility Research Report; 2) Implementation Standard for Environmental Impact Assessment; 3) Environmental status monitoring data; 4) Public participation questionnaire and internet bulletin contents; 5) Other engineering technology stuff to be provided by the construction unit

1.3 Assessment goals and principles The Project is a typical production project of pulp paper making, during which certain environmental problems are unavoidable. In order to solve these environmental impact problems based on the consideration of the characteristics of the Project, the following principles shall be followed in the assessment activities:

1) To realize the sustainable and coordinated development between the Project construction and the local natural condition, social culture, economic growth, resources utilization and environmental protection, i.e., to ensure the Project construction to be conducted according to the strategy of sustainable development. 2) To analyze the reasonability of the overall arrangement of the Project. Countermeasures for pollution prevention and control shall be proposed based on the analysis and demonstration of the current measures of environmental protection of the Project.

3) To adhere to the principles of “discharge to reach standard”, “aggregate control” and “cleaner production” and demonstrate the feasibility of the various measures of pollution prevention and control in the angle of economy and technology. 4) To analyze the effectiveness and reliability of the measures for treatment and comprehensive use of wastewater, waste gas and industrial solid waste generated during the Project construction according to the principle of “key task priority” and based on the technical characteristics of the Project, so as to conduct the Project’s impact on the environment. 5) To predict the level and scope of the impact of abnormal discharge on the environment based on the environmental status monitoring results; define the protective distance of the atmospheric environment and propose the requirements based on the Project characteristics and the distribution of surrounding sensitive points. 6) To conduct analysis on the current production and the pollutants generation, treatment and discharge based on the monitoring data of the existing pollution sources. 7) To analyze and demonstrate the reasonability of the measures of solid waste treatment based on the results of environmental impact assessment of the white sludge site. 8) To draw an explicit, impartial and credible conclusion on the feasibility of the Project construction.

1.4 Assessment levels and scope

Assessment levels According to the requirements of the “Technical Guidelines for Environmental Impact Assessment”, the assessment of the Project shall be classified into different levels based on the normal emission source intensity.

1) Environmental atmosphere The source intensity of the air pollutants from normal emission is SO2 discharged from the boiler, classified as Level III.

2) Surface water environment The Project is an engineering of water pollutants discharge reduction, with the source intensity as from the wastewater station, classified as Level III.

3) Ground water environment No ground water shall be pumped for being used for the Project, which belongs to Type I construction engineering according to the “Technical Guidelines for Environmental Impact Assessment---Ground Water Environment”. The performance of anti-pollution in the unsaturated zone of the Project site is medieval, aquifer not easy to be polluted, ground water not sensitive, complexity of the wastewater quality at middle level, and the volume of sewage water discharge at medium level. According to the “Technical Guidelines”, the environmental impact of the ground water is assessed at Level III.

4) Acoustic Environment

The Project is a technology reform engineering without change of noise pollution sources before and after the construction, the acoustic environment impact is assessed at Level III.

5) Environment risk assessment According to the analysis, the existing liquid chlorine risk sources shall be eliminated after the Project construction. According to the “Technical Guidelines for Risk Assessment for Construction Projects”, the Project’s risk assessment is Level II.

Assessment scope The assessment scope is shown in Table 1.

Table 1: Project Assessment Scope Environmental Factor Assessment Scope The receiving body of the wastewater is Daduhe River, Surface water and the assessment scope is 10km down the wastewater environment outlet Environmental 5×5km 2 around the exhaust funnel of the boiler atmosphere Environmental 3km around the Plant site

1.5 Assessment elements and methods

Assessment elements Based on the comprehensive analysis on the environmental characteristics and the environmental impact factors of the Project site, the assessment element is: to conduct deepening analysis on the production processes and the pollution control measures, mainly including the analysis on the effectiveness and reliability of the wastewater treatment and emergency response measures as well as the environmental risk assessment, so as to propose the measures for accident prevention and the plans for emergency response.

Assessment contents The main contents of the assessment include: 1) To assess the impact on the natural environment brought by the exhaust gas, wastewater, noise and solid waste during the operation period and propose measures and recommendations for mitigating the adverse impacts; 2) To demonstrate the economic feasibility and advanced nature of the pollution prevention and control measures and the reliability of the stable discharge to reach the standard; 3) To conduct environmental risk analysis; 4) To encourage public participation and integrate the public opinion into the measures for pollution prevention and control.

1.6 Environmental protection targets and sensitive points

Environmental relationships of the Project

The Project is located at Fulu Township in Shawan District of Leshan City, occupying a land area of 12.13 hectare (182 mu), with Daduhe River on the west side and the hills on the east side. The Project site is at a distance 20 km southeast to Shawan District and 4 km south to Fulu Township, only 0.5km from Niushi Township with Daduhe River running across.

North to the production area are three households; on the west side is the road to Fulu Township, and the existing boilers are across the road; there are about 5~7 households 15m north to the boilers and 10m west to the Plant area, 1 household at a distance of 100m south to the Plant area and five households at a distance of 310m south to the Plant area. On the west side and across the Daduhe River is Hiushi Township at a distance of 500m. Within 100m around the wastewater station, no household is located, there is only a brick plant at a distance of 50~300m east to the station, and the Daduhe River is 30m west to the station.

The surrounding environment of the Project is shown in the Map 1 attached at the end of this document.

Environmental protection targets 1) Environmental atmosphere The targets of atmospheric environment protection are: Downtown of Fulu Township: north to the Plant, 4km, 21,000 population. Niushi Township: West to the Plant, 0.5km, 10,380 population. Niushi Township School: West to the Plant, 0.43km, 1,000 staff and students. Tongci Township: south to the Plant, 4.5km, 7,760 population.

2) Surface water The assessment area of the Project is classified as Level III according to the “Quality Standard for Surface Water Environment” (GB3838-2002), without specific protection targets in this area.

3) Ground water To protect the quality of the ground water of the Plant area and the neighboring wells of the farmer households.

4) Acoustic environment The assessment area of the Project is classified as Level II according to the “Quality Standard for Acoustic Environment” (GB3096-2008), with fewer residents around the Plant under the impact of the noise pollution, so there is no specific protection targets.

5) Environmental risks The protection targets of environmental risk include the atmosphere and the surface water.

The main targets of environmental protection are shown in Table 2.

Table 2: Main Targets of Environmental Protection and Focal Points ( 5km) Environmental Protection Item Location Protection Level element Targets “GB3838-2002”, Surface water Daduhe River West side / Level III To protect the 60m east to ground water and “GB/T14848-93”, Ground water Wells wastewater wells from Level III station pollution Fulu Township N, 4km 21,000 p Niushi W, 0.4km 10,380 p Township Tongci N, 4.5km 7,760 p Township “GB3095-1996”, Environmental Niushi Level II atmosphere Township W, 0.4km 1000 p Central School N, 10m 3 households Farmer W, 30m 5~7 households households S, 100m 1 household S, 310m 5 household About 20 Acoustic “GB3096-2008”, 20-m radius households near environment Level II the Plant To ensure the Environmental protection targets existing risks are Environmental Atmosphere 3km around the chemical acceptable risk workshop environmental risks

1.7 Assessment standards

Environmental quality 1) Environmental atmosphere

The environmental atmosphere for the Project shall meet the standard of Level II according to “GB3095-1996”. See Table 3.

Table 3: Environmental Atmosphere Assessment Standard Unit: mg/Nm 3

Item PM 10 SO 2 Yearly average 0.10 0.06 Daily average 0.15 0.15 1-hour average / 0.50 Executing standard “GB3095-1996”, Level II 2) Surface water environment The surface water environment shall meet the standard of Level III according to the “Quality Standard for Surface Water Environment” (GB3838-2002). See Table 4.

Table 4: Quality Standard for Surface Water Environment

NH 3- Total Total Volatile Item pH CODcr BOD 5 SS Sulfide N Nitrogen Phosphorus Phenol

Concentration 69 ≤20 ≤4 ≤1.0 ≤0.05 ≤0.2 ≤0.2 ≤0.2 ≤0.005 limit (mg/l)

Classification “Quality Standard for Surface Water” (GB3838-2002), Level III

3) Ground water environment The ground water environment shall meet the standard of Level III according to the “Quality Standard for Ground Water Environment” (GB/T14848-93). See Table 5.

Table 5: Quality Standard for Ground Water Environment Total Ammonia Volatile Permanganate Item pH Chroma Sulfate Chloride Rigidity Nitrogen Phenol Index Concentration 6.5~8.5 ≤15 ≤450 ≤0.2 ≤250 ≤0.002 ≤250 ≤3.0 limit (mg/l)

Classification “Quality Standard for Ground Water Environment” (GB/T14848-93), Level III

4) Acoustic environment

The acoustic environment shall meet the standard of Level II according to the “Quality Standard or Acoustic Environment” (GB3096-2008). See Table 6.

Table 6: Quality Standard for Acoustic Environment (GB3096-2008) Standard Value---dB(A) Standard Daytime Nighttime GB3096-2008 Level II 60 50

Emission standards 1) Water pollutants The wastewater discharged from the Project construction, having met the “Standard for Discharge of Water Pollutants from Pulp Paper Making Industry” (GB3544-2008) (II) after being treated at the self-built Sewage Water Treatment Plant, shall be released to the Daduhe River.

The discharge of water pollutants from the wastewater generated during the Project construction shall meet the Standard. See Table 7.

Table 7: Standard for Discharge of Water Pollutants from Pulp Paper Making Industry (GB3544-2008) Unit: mg/L Water Emission COD BOD Ammonia Total Total Discharg pH SS Chroma AOX Standard C 5 Nitrogen Phosphorus Nitrogen e GB3544 - ≤60 6~ ≤90 ≤20 ≤5 ≤8 ≤0.8 ≤12 ≤50 ≤12 Note: no dimension for pH value, water discharge volume unit: ton/ton product (pulp)

2) Atmospheric pollutants The emission of flue gas from boiler shall meet the standard of Type II (Time Period II) according to the “Standard for Emission of Atmospheric Pollutants from Boiler” (GB13271-2001); the emission of flue gas from alkali furnace shall meet the standard of Level II according to the “Standard for Emission of Atmospheric Pollutants from Industrial Boiler and Kiln” (GB9078-1996); the generation of exhaust gas (stink gas) shall meet the standard of Level II according to the “Standard for Emission of Stink Pollutants” (GB14554-93). See Table 8-10.

Table 8: Standard for Emission of Atmospheric Pollutants from Boiler Pollution Emission Emission Emission Standard Unit Factor Parameter Limit GB13271-2001, Time Emission Flue gas mg/Nm 3 200 Period II concentration

Table 9: Standard for Emission of Atmospheric Pollutants from Industrial Boiler & Kiln Pollution Emission Emission Emission Standard Unit Factor Parameter Limit Emission Flue gas mg/Nm 3 200 concentration GB9078-1996, Level II Emission 3 SO 2 mg/Nm 850 concentration

Table 10: Standard for Emission of Stink Pollutants Pollution Emission Plant Emission Standard Unit Factor Parameter Boundary Emission Emission 3 GB14554-93 (I), Level II H2S mg/Nm 0.1 concentration

3) Noise The Plant boundary noise assessment shall be conducted according to Level II of the “Emission Standard for Industrial Enterprises Noise at Boundary” (GB12348- 2008). See Table 11.

Table 11: Standard for Noise Emission at Boundary Standard Value---dB(A) Emission Standard Applicable Conditions Daytime Nighttime GB12348-2008, Level 60 50 / II

2 Analysis of Substitute Plan and Technology Reform

Project Title : Technology Reform for the Pulpmaking System Construction Unit : Sichuan Province Jinfu Paper Product Co., Ltd Project Nature : Technology reform Project Location : The existing plant area in Fulu Township, Shawan District, Leshan City, 12.13 hectare (182 mu).

2.1 Comparative Analysis of the Existing Project and Technology

Reform Engineering

Summary of the technology reform for Jinfu Company The series of ongoing technology reform projects and those to be conducted by Jinfu Company as of August 2010 are shown in Table 12.

Table 12: Projects of Technology Reform by Jinfu Company Main Facilities / Environmental No. Project Status Technology Reform Protection Targets State Remarks Contents Having Been Met & Current situation of Production capacity: Discharge of Having been Construction Jinfu Company pulpmaking 52,000 t/a wastewater up to the implemented finished. and paper making standard of “GB3544 - EIA Report 57,000 t/a; 2008” (Table 2): approved by Pulpmaking workshop COD Cr ≤90mg/l, Sichuan (dry material benchmark volume of Provincial preparation, spherical wastewater discharge Environmental digester cooking, knot per unit product Protection boring, vacuum pulp ≤60t/ton (dry pulp); Bureau in 2010 cleaning, pressure standard emission of ([2010] 479); 1 screening, CEHP 4- flue gas from boiler and Checked and phase bleaching), at alkali furnace; standard accepted in July Paper Making emission of noise at 2011. Workshop, Alkali boundary; Recovery Workshop, having realized Middle-Stage comprehensive use and Wastewater Treatment innocuous treatment of Station, White Water solid waste. Recycle Facility, Boiler Wastewater discharge: Room, White Sludge 2850m3/d(969,000 m3/a) Site. COD Cr :90mg/L, 252.5t/a NH -N:8mg/L , 22.5t/a

The Project of Having built the Having reduced the Being Ongoing Technology Reform medium-pressure emission of stink gas implemented construction of for Energy Saving (3.82MPa) and low- from the process of Jinfu and Emissions stink alkali furnace for black liquor Company. Reduction --- replacing the existing concentration and EIA Report registered at Leshan low-pressure steaming decreased the energy approved by Municipal alkali furnace; consumption; Leshan Commission of Having built one set of Having reduced the Municipal Economy and medium-pressure emission of waste gas Environmental

Information circular liquidized bed such as SO 2 and Protection 2 Technology ([2010] boiler (50t/h) for decreased the energy Bureau ([2011] 11) replacing the existing consumption. 26); low-pressure 3-set Flue gas emission from boiler system (49t/h). boiler and alkali furnace after technology reform:

SO 2: 259.1t/a Soot: 94.8t/a

NO x: 644t/a

The Project of Overall reform for To reduce the generation To be The Project. Technology Reform upgrading of the of industrial wastewater finished by Environmental for Energy Saving pulpmaking system, and pollutants and 2014. Impact and Emissions simultaneously realized reasonable and Assessment is

Reduction for building the ClO 2 reliable means of being Pulpmaking System-- production facility for middle-stage wastewater conducted. - registered at Leshan bleaching. recycle after advanced 3 Municipal treatment , the discharge Commission of of wastewater shall Economy and reach the requirements Information of “GB3544 -2008” Technology ([2011] (Table); to reduce 11) emission of dispersed stink gas and reduce the energy and water consumption.

Contents of technology reform for the Project and the ongoing constructions For overall upgrading and reform of the existing pulpmaking system, all main equipments shall be replaced or new equipments shall be added. After the technology

14 reform, medium-concentration operation shall be conducted in the processes of know boring, screening, oxygen delignification and bleaching, water and steam consumption has been reduced significantly, the generation of middle-stage wastewater has been decreased. The contents of technology reform for the Project are shown in Table 13, the contents of technology reform for the ongoing projects are shown in Table 14.

Table 13: Contents of Technology Reform for the Project No. Contents of Technology Reform Workshops Replacement of Existing Facilities To build the system of wet raw Pulpmaking Preparation Dry raw material 1 material preparation workshop preparation To build a low energy Cooking 10 sets of 25m 3 consumption intermittent and cooking balls replacement cooking system (4 sets of 135m 3 boilers, 1 set of 800m 3 discharging tank; with 2 newly constructed high-and-low concentration stink gas collecting facility and the high concentration stink gas photo-oxidation processer) To built a 3-phase medium- Washing, 4-phase low- concentration chlorine dioxide screening concentration

bleaching system (D 0-EOP-D1 and chlorine-free bleaching) bleaching bleaching system 3 (CEHP: chlorine – alkali – hypochlorite – hydrogen peroxide)

No. Contents of Technology Reform Workshops Replacement of Existing Facilities To build a medium-concentration Non oxygen delignification system 4 (including an oxygen preparation system with the capacity of 200m 3/h) To choose the medium- Low-concentration 5 concentration knot boring system knot boring and and the medium-concentration screening system. To build a collecting and washing Non 6 system of waste gas from washing, screening and bleaching To build a 4t/d chlorine dioxide Chemical workshop Non 7 preparation system

To build a sodium chlorate Sodium chlorate To dismantle the 8 storehouse (18m×12m) storehouse existing liquid chlorine storehouse

Table 14: Jinfu Company’s Ongoing Projects of Technology Reform for Energy Saving Engineering Main Contents of Evolvement of Main No. (Workshop) Implementation Environmental Problems

1 Alkali Evaporation To build an evaporation For mitigating the recovery process system for replacing the pollution burden of by workshop outdated and eroded condensate water and evaporation system; to add a alleviate the pressure for cooling water circulating the sewage water station; system, a stained controllable combustion condensation water stripping of stink gas in stripping unit and a stink gas alkali furnace for combustion system. reduction of uncontrollable release.

Engineering Main Contents of Evolvement of Main No. (Workshop) Implementation Environmental Problems

Incineration To build a medium- Waste heat and pressure process temperature and medium- from the increased steam pressure alkali recovery pressure may be used for furnace with the capacity of power generation. 225tds/d for replacing the outdated low-pressure alkali furnace. Causticization To add two sets of 30m 2 pre- For reducing the content process coated sludge filter.. of residual alkali in white sludge and eliminating the loss of alkali, which is a basis for comprehensive use of alkali. 2 Boiler room To dismantle the existing No new types of boiler room outside the Plant pollutants shall be and phase out the 3 sets of generated. Increased outdated and low thermal thermal efficiency and efficiency boilers. To build a decreased coal new boiler room west to the consumption and

alkali recovery workshop and reduced emission of SO 2 reinstall a high thermal due to combustion efficiency circulating desulphurization inside fluidized bed boiler, the 80- the new boiler. The 3- meter chimney of the alkali field dust collection furnace shall be used for from flue gas has been releasing the flue gas left changed into 4-field dust after 4-field dust collection. collection, with higher To build a 50t/h desalination efficiency of soot water production facility for collection and lower replacing the existing release. production facility of ion exchange resin desalination water.

Engineering Main Contents of Evolvement of Main No. (Workshop) Implementation Environmental Problems

3 Waste heat power To equip a back-pressure Noise problem and water station generator matching the steam discharge from the generation capacity of the cooling water circulating alkali recovery furnace. system. 4 Overall layout of the Ridges, fields, pipelines and Environmental impacts Plant vegetation. during the construction period.

The pulp production capacity after technology reform shall remain at 52,000 t/a; the technology reform shall not involve the papermaking workshop, and the paper production capacity shall remain at 57,000 t/a.

Project components The Project components of Jinfu Company after technology reform are shown in Table15.

Table 15: Post-Technology Reform Project Components and Main Environmental Problems Main Environmental Main Environmental Project Project Title Construction Contents Problems in Protection Measures in Remarks Classification Project Operation Operation Period Period

Main Project Pulpmakin Overall reconstruction of Black liquor Black liquor from Workshops g pulpmaking workshop by from pulpmaking to be sent to implementin Workshop adding new main pulpmaking the alkali recovery g technology equipments or replacing process, workshop for reform as the existing ones, with wastewater from combustion; planned in pulpmaking capacity bleaching Middle-stage wastewater the Project remained at 52,000 t/a. process, to be transported to the Main contents after wastewater from wastewater treatment technology reform: raw material station and be discharged 1) wet raw material preparation, after treatment; preparation; waste gas from Waste gas from cooking 2) intermittent and cooking process, to be released after replacement cooking: raw material collection and treatment; residue and 4×135m3; Raw material residue to bamboo residue. 3) medium-concentration be fed into the boiler as knot boring, oxygen fuel. delignification, medium- concentration sealed screening and purification; 4) ECF chlorine-free bleaching 5) 250Nm3/h oxygen generator

Main Environmental Main Environmental Project Project Title Construction Contents Problems in Protection Measures in Remarks Classification Project Operation Operation Period Period

Main Project Alkali Evaporating: five-tank Flue gas Flue gas may be released Technology recovery five-effect evaporator, generation due from the 80-meter reform is workshop stained condensation to combustion in chimney after four-field ongoing for water stripper; the alkali dust collection; melted this Project. Combustion: the furnace, groove groove steam may be combustion capacity of the steam melting in released from the 35-meter alkali recovery furnace is the alkali chimney; vaporizing non- 225tds/d, with the furnace, non- condensable gas may be byproduct of 3.82MPa condensable gas released after being steam to be used for waste evaporation; absorbed by water seal heat power generation; white sludge, from the vacuum pump; stink gas to be combusted lime sludge; White sludge and lime simultaneously. stained sludge may be exported to Digestion and condensation the landfill; causticization: including water from Vaporizing stained the green liquor clarifier, black liquor condensation water may continuous causticizer, evaporation and be discharged after being white liquor clarifier and water seal water treated at the wastewater white sludge scrubber. discharged from treatment station, and vacuum pump. water seal water from the vacuum pump may be transported to the wastewater treatment station. Papermakin Production capacity: White water Most white water may be Not adopted in g workshop 57,000t/a; from used in the washing and the Project. Including 14 production papermaking screening processes after lines for making hygiene machine; broke being treated at white paper, bleached bamboo paper water treatment station, pulp and paperboard and with the rest to be cultural paper. discharged after being treated at wastewater treatment station; broke paper may be reused after pulp beating at the workshop.

Chemical To build a 4t/d and R8 Non- Non-condensable gas Newly workshop chlorine dioxide condensable gas from the absorbing tower constructed preparation system with from the may be released to the air; facility for the actual production of absorbing tower, cooling water discharged the Project. 1% chlorine dioxide cooling water from the vacuum jet solution reaching 2.75t/d discharge from pump may be transported (%) and the byproduct of the vacuum jet to the wastewater sodium sulfate at 3.85t/d. pump, hidden treatment station. risks in raw material sodium chlorate and methanol.

Public and Boiler One circulating liquidized SO 2, soot, boiler Desulphurization inside Technology auxiliary room bed boiler, dry coal shed, residue and the boiler, flue gas may reform is environmenta slag shed dust, wind be released with the alkali ongoing for l protection blower noise, furnace flue gas after the Project. facilities boiler sewage four-field dust collection, water. the boiler residue may be sold to the cement plant. Desalination A 30t/h desalination facility Resin reclaimed May be transported to the station wastewater. wastewater treatment station Air An air compression Equipment Sound insulation and Not adopted in compression facility is installed in the noise. shock absorption the Project station papermaking workshop for supplying the meters with air. Transform Power supply facility / / er substation

Wastewater For the treatment of Tail water, The discharge of Technology station middle-stage wastewater, sludge, and wastewater shall be reform for the stained condensation stink. conducted according to Project has water from black liquor, the “Standard for been finished residual white water from Discharge of Water basically. the paper machine, Pollutants from Pulp and domestic sewage and papermaking Industry” ground washing water. (GB3544-2008) (Table 2), a protective distance shall be reserved for the transportation of sludge. White A residue site has been Hidden risk of Anti-seepage measure. Not adopted in sludge site built in Huangnipo ground water the Project. Village, 4km northeast to pollution. the Plant, for landfilling of the white sludge. Storage Liquidized Hidden risk of Strengthened New facility sodium explosion management as required. construction. chlorate storehouse Finished A storehouse for finished / / Not adopted in products paper scrolls and the Project storehouse paperboard. Plant workers and staff Workshops and the Plant Domestic sewage Domestic sewage water Office. water and may be transported to the garbage. wastewater treatment station, domestic garbage may be transported to the stockpile location designated by the environmental hygiene department. Note: The shadowed parts are the contents of technology reform for the Project, the rest parts are reserved facilities; the existing pulpmaking facilities and liquidized sodium chlorate storehouse shall be dismantled.

2.2 Company status quo and projects under construction

Company status quo 1) Current situation of products layout

The current production capacity of Jinfu Company is 52,000 t/a for pulpmaking and 57,000 t/a for paper making, the product quality shall be inspected according to the relevant national and industry standards. The products layout is shown in Table 16.

Table 16: The Layout of the Company Products Type Production Products Layout Pulp 52,000 t/a 52,000 t/a bleached bamboo pulp

Paper 57,000 t/a cultural paper and hygiene raw 57,000 t/a product paper

2) Overall layout of the Plant The Plant area of Jinfu Company is an oblong shaped site from north to south, divided into raw material preparation area, pulpmaking area, alkali recovery area, boiler room, paper products production area and middle-stage water treatment area according to the topographic feature and the specific implementation of technology reform.

The raw material preparation area is located in the central section of the Plant; the pulpmaking area, as well as the washing, screening and bleaching workshops, is on the east side near the hill; the alkali recovery workshop is chosen at the south edge of the Plant; the boiler room and dry coal shed are east to the central area; the paper products production area is located in the northern section of the Plant and separated from the pulpmaking area, the wastewater treatment station (for middle-stage wastewater) is on the right bank of Daduhe River, 150m northwest to the production area, the water station is also built in this area.

3) Brief introduction of the processes Jinfu Company chooses bamboo pieces as the raw material for pulpmaking, a technique including the processes of dry raw material preparation through intermittent sulfate cooking, vacuum machine pulp washing, pressured screening, medium- concentration sand remover purification and four-stage low chlorine bleaching.

The production of cultural paper is by a 1,760mm multi-cylinder long-mesh machine working at the speed of 200m/min; the production of household paper is finished by 11 sets of hygiene paper making machines with the width of 2,200mm and working at the speed of 180m/min.

The recovery of alkali includes the condensation, combustion and causticization processes by a five-effect evaporator

In general, the pulpmaking process adopted by Jinfu Company belongs to the traditional and backward production technology, such as the processes of ball cooking, low-concentration knot boring and Cl2 bleaching.

4. Existing process flow and wastewater generation links

Figure 1: Current Process flow of Jinfu Company Pulpmakin Purchased Boiler g bamboo Desalination workshop pieces Purchased Raw Station coal Desulphurizationwater Material Quicklime 4-field dust collection and release powder Desalinized water Dry Material 50t/h circulating Boiler fluidized-bed boiler flue gas

Cooking System (10 25m 3 cooking balls and Steam Steam discharging tanks) header

Alkali recovery Stained workshop condensation To Knot Boring System wastewater water treatment Evaporation & station Four-Tank Vacuum Pulp Black Condensation Washer liquo System

Steam header

High Concentration Steam Sodium Black Liquor Sealed sulfate 4-field dust collection and release

Combustion System Alkali (225tds/d, 3.82MPa) furnace flue Clear gas water Causticization Whit Residue Quicklime System e landfill powder

White Back to cooking CEHP 4-Stage liquor process Wastewater treatment station Bleaching (chlorine-free Middle- Wastewater bleaching) stage Treatment Partial reuse wastewate Station r (ABR + Contact Reaching standard oxidation + Chemical discharge to oxidation, plus level- Daduhe River Bleached Plup Tower III shallow

Papermaking To pulpmaking Paper White Water Recycle workshop workshop machine System (flocculating sedimentation White white + shallow vaporizing) water water

Finished Paper Storehouse Back to papermaking Fiber recycle workshop

Figure 2: Current Puplmaking Process and Waste Water Generation Links of Jinfu Company Material Qualified bamboo pieces Moisture content and Stockpile small-volume fermented (purchased) (15~30d) gas

Screening Bamboo residue

Stea Direct heating Small release gas m Alkali Cooking Cooking Ball Cooking Concentrated liquor Groove (10 25m 3 cooking balls, white liquor

Addition of Dischargin liquidized / g tank Discharging gas sulphurized alkali 25

Knots

Cooking: pulp concentration 12%

Crude Pulp Pool

Pulp material

H2O2 bleached Medium - water discharge Frame-Shaking Pulp residue concentration Screen Machine (bamboo knots) Knot Borer

Hot white water Vacuum Pulp Black Back to alkali Washer recovery (4-stage, backwashing) liquor accepts workshop Screened water discharge Pressurized Grit Tail pulp Pulp Pressurized Screen (II) catche residu Screen (I) r Accepted pulp e Condensated water Accepted pulp High -Concentration Clear Pulp Washer water Pulp concentration 5%

Pulp Storage Screened wastewater (middle - stage) Tower Liquid chlorine Gasification Chlorination Tower To wastewater Backwashing + Pulp Washer treatment station

Alkali solution Alkali Tower + Pulp Washer Bleached wastewater Direct heating

Hypochloric H-Stage Bleaching chlorate solution Tower + Pulp Washer

H O bleached 2 2 Aquae hydrogenii P-Stage Bleaching wastewater dioxide solution Tower + Pulp Washer Clear Reuse for water Pulp concentration 10% washing and screening Vertical Pulp Storage Tower

5. Existing public and auxiliaryBleached and environmental Bamboo Pulp protection facilities • Water Station Production and domestic use water is from Daduhe River, the Water Station is located near the bank of Daduhe River, 150m northwest to the Plant, with a capacity of water supply at 15,000~20,000 m 3/d.

• Desalination Station There are two sets of desalination equipments installed in the alkali recovery room and boiler room respectively, adopting the ion exchange processing technology with a capacity of 44 t/h, supplying water for the waste heat alkali furnace and normal

26 low-pressure boiler. The capacity of the Desalination Station at the alkali recovery room is 11 t/h, and the capacity of the Desalination Station at the boiler room is about 33 t/h.

• Cooling water supply No installation of circulating water station in the Plant. The heated cooling water from the evaporating process at the alkali recovery workshop shall be transported to the pulpmaking workshop for washing and bleaching, this is for comprehensive use of thermal energy.

• Power Transformer and Distribution Station A general Power Transformer and Distribution Station is located in the Plant area, extended overhead from Xinhua Power Distribution Station 3km away. It’s installed with two sets of 35kV/10.5kV Transformer and equipped with diesel generator for supplying electricity to all power-driven devices in the Plant. The level of power load is for 0.38kV devices.

• Air Compression Station Five sets of SA-90A air cooling screw air compressors are installed in the Station for supplying air to the Papermaking Workshop. Parameters for each air compressor: discharge rate: 15m 3/min, pressure: 0.8MPa, power supply: 90kW.

• Boiler Room One 35t/h circulating liquidized-bed coal-fired boiler is installed in the Boiler Room, adopting the technique of limestone combustion desulphurization; one 6t/h and one 8t/h chain boiler also installed in the Boiler Room. Flue gas is released through the 50-meter pipe after the process of dust collection by a 3-field electrostatic cleaner.

The Boiler Room is located at the west section of the Plant, close to the Dry Coal Shed and Residue Storehouse.

• Wastewater Treatment Station (middle-stage water treatment system) The existing 20,000t/d middle-stage water treatment system is located at a distance of 150m northwest to the Plant, south to the Water Station and near the bank of Daduhe River, including the treatment of middle-stage wastewater, alkali evaporating stained condensation water, domestic sewage water and ground washing water. The treated water after the process of “Temper → Preliminary sedimentation → ABR → Contact oxidation → Secondary sedimentation pool → Release” is released through the pipes to Daduhe River.

• Paper Machine White Water Recycle System The 10,000t/d Paper Machine White Water Recycle System is installed in the Papermaking Room for processing the diluted white water. After the processes of “flocculating settling + shallow vaporizing”, the treated white water is mostly transported back to the Pulpmaking Room, with the rest transported to the Wastewater Treatment Station.

• White Sludge Site The white sludge generated after alkali recovery is about 52,000t/a, dumped at the White Sludge Site located in Unit 1, Huangnipo Village, Fulu

Township 4km northeast. In the shape of “C” and at the height of 20m, the effective storage capacity amounts to 200,000 m 3 for 8~10 years of storage. Currently the operation has been going on for two years.

6. Generation, treatment and release of the existing pollutants • Wastewater There are three main sources of wastewater generation: cooking black liquor, middle-stage wastewater, and papermaking white water, which shall be treated separately according to the principles of “clear water and sewage water separating”, “different treatment for different sewage water” and “multiple-stage use”.

Types of wastewater and treatment measures Black liquor : The waste liquid from cooking process is the main source of pollution in papermaking industry, accounting for over 90% of the total amount of wastewater. Therefore, the extraction of black liquor and the recovery of alkali are the most effective means for pollution control in pulp and paper making industry.

Alkali recovery is the most feasible method for black liquor processing, besides the removal of over 90malayo % water pollution burden, the recovered alkali and thermal power can also bring economic benefits. The rate of black liquor extraction is 95%, and the rate of alkali recovery is 90%.

Middle-stage wastewater and alkali recovery evaporating wastewater : The pollution burden of the middle-stage wastewater and alkali recovery evaporating stained condensation water accounts for 10% of that of the total wastewater generated from pulpmaking.

The middle-stage wastewater is mainly from the process of screening and bleaching in pulp washing, screening and bleaching. The middle-stage wastewater, after being treated and finished the secondary biochemical materialization, may be discharged up to the standard.

The concentration of the black liquor extracted from the washing process is about 13%, while the required concentration for combustion shall be 55%, so vaporizing concentration is needed. The vaporizing stained condensation water, with the pollution burden decreased greatly, may be transported to the Wastewater Treatment Station for treatment.

Paper machine white water : The concentrated white water may be used directly for pulp mixing in pre-papermaking system, while the diluted white water, after a small proportion being transported to the recycle system for “flocculating settling + shallow vaporizing”, most of which shall be transported to the alkali recovery condensation and evaporation system for heat exchange and then be used for pulp washing and concentration adjustment, and the rest white water shall be discharged after being treated at the Wastewater Treatment Station.

Other wastewater : Besides the above three types of wastewater, there are some other types of wastewater discharged at a smaller volume and causing lighter pollution, such as domestic sewage water, ground washing water, boiler sewage

water, resin reclaimed water from the Desalination Station, etc., all of which shall be transported to the Wastewater Treatment Station and discharged after treatment.

The generation of wastewater by Jinfu Company is shown in Table 17.

Table 17: Current Situation of Generation and Treatment of Wastewater by Jinfu Company Volume Main Pollutants & Generatio Treatment & Workshop Sources (m 3/d) Concentration n Feature Discharge Transported to Alkali Cooking COD Cr : Continuou 1377 Recovery Room but black liquor 80000mg/l s not discharged Screening Transported to wastewater COD Cr : 1000mg/l Continuou Pulpmakin 3825 Wastewater (middle- SS: 800 mg/l s g Room Treatment Station for stage) treatment, then Bleaching discharged to wastewater COD Cr : 1500mg/l Continuou 4972.5 Daduhe River up to (middle- SS: 650 mg/l s standard stage) Transported to white water recycle system for treatment, after which partially be Paper used for washing, Papermaki COD Cr : 200mg/l Continuou machine 7879.5 screening and ng Room SS: 300mg/l s white water bleaching, the rest (994.5t/d) to be transported to Wastewater Treatment Station Vaporizing Transported to Alkali Stained Continuou Wastewater Recovery 1071 COD Cr : 1000mg/l Condensatio s Treatment Station for Room n Water treatment, then Resin discharged to Desalinati reclamation Intermitte Daduhe River up to 10 Clear drain water on Room sewage nt standard water

Boiler Boiler Continuou sewage 19 Clear drain water Room s water Ground Intermitte washing 45 COD Cr : 350mg/l nt water Plant Area Domestic Continuou sewage 80 COD Cr : 350mg/l s water Total water volume transported to 11017m 3/d Wastewater Treatment Station

• Wastewater treatment technology and efficiency The Wastewater Treatment Station (middle-stage wastewater treatment facility) is designed for treating middle-stage wastewater, residual white water, domestic sewage water, ground washing water at the capacity of 20,000t/d. The wastewater after treatment may be discharged to Daduhe River if it has met the concentration limit for pulp and paper manufacturers as specified in the “Standard for Discharge of Water Pollutants from Pulp and Paper Making Industry” (GB3544-2008 ) (Table 2).

The process flow for wastewater treatment at the Wastewater Treatment Station is shown in Figure 3 and the contents are shown in Table 18.

Table 18: The Results of Wastewater Treatment at Existing Stations

Treatment COD Cr BOD 5 SS NH 3-N pH Chroma/ Index Units /(mg/L) /(mg/L) /(mg/L) /(mg/L) Value times Influent 1500 500 480 12 811 350 Grating/Water Effluent 1350 450 384 11 811 315 Pool/Regulating Removal Pool 10 10 20 5 / 10 rate % Preliminary Effluent 1215 392 288 11 6.5 8.5 63 Sedimentation Removal 10 13 25 0 / 80 Pool rate % ABR/Contact Effluent 267 70 86 9 6.5 8.5 38 Oxidation Pool

Oxidation Pool Removal 78 82 70 25 / 40 rate % Secondary Effluent 120 30 35 6 6.5 8.5 19 Sedimentation Removal 55 58 60 30 / 50 Pool rate % Advanced Effluent 90 20 30 6 6.5 8.5 50 Processing Removal (Shallow 25 33 14 / / / rate % vaporizing)

Figure 3: Process Flow of the Wastewater Treatment Station

Crude Preliminar residu y Regulatin e Dehydrator Crude Wastewater g Pool Sedimenta tion Pool residue Filtrate ABR Pool Filtrate

Aeration Contact Oxidation Pool

Sludge Sludge Dehydrator Secondary Condensati Sedimentation on Pool Pool Middle water Sludge plate transportation online monitoring reuse Advanced Treatment System

Discharged to Daduhe River Tail water

Table 18 shows that the concentration of the pollutants discharged from the Wastewater Treatment Station and the volume of wastewater generated per ton products have met the standard of concentration limit required for pulp and paper manufacturers as specified in the “Standard for Discharge of Water Pollutants from Pulp and Paper Making Industry” (GB3544-2008) (Table 2)

1. Waste gas The waste gas generated by the Company includes two types: industrial waste gas and flue gas. The flue gas includes the coal-fired flue gas from the boiler and the coal-fired flue gas from the alkali furnace; industrial waste gas is the uncontrollable emission of sulphur-containing stink gas from cooking, black liquor evaporation and the Wastewater Treatment Station. The uncontrollable emission of typical pollutants is TRS (H2S), at a rate of 12.0g/h.

1. Solid waste The solid waste generated by the Project construction includes waste bamboo pieces, coal residue, white sludge, lime residue, broke paper, as well as the sludge and fiber residue at the Wastewater Treatment Station.

The waste bamboo pieces shall be transported to the boiler for combustion; the coal residue shall be used as raw material at the Cement Plant for the purpose of comprehensive utilization;

The white sludge and lime residue shall be transported to the White Sludge Site

32 for landfilling;

The sludge and crude residue from the Wastewater Treatment Station shall be transported to the Landfill in Shawan District;

The broke paper from Papermaking Room shall be sent back to the workshop for pulp beating.

2. Noise The equipment noise comes from the processes of cooking gas discharge, Air Compression Station, Vacuum Pump, Water Pump, Boiler Fan, Alkali Recovery Fusion Tank, etc.

3. Summary of the emission of three wastes by the Company

Table 19: Summary of the Emission of “Three Wastes” from the Plant Type Generation Source Intensity Emission Source Intensity Volume of wastewater: Middle-stage wastewater 8797.5t/d

COD Cr : 1,100mg/L, 3290t/a Volume of wastewater: Alkali recovery stained 1071t/d condensation water Volume of wastewater: COD Cr : 1,000mg/L, 364t/a 8,250t/d Volume of wastewater: Waste COD Cr : 90mg/L, 252.5t/a Paper machine white water 994.5t/d water (residual after reuse) BOD 5: 20mg/L, 49.5t/a COD Cr : 150mg/L, 51t/a SS: 50mg/L, 123.8t/a Boiler Room sewage Volume of wastewater: NH 3-N: 8mg/L, 22.5t/a water, resin reclaimed 29t/d water Volume of wastewater: Domestic sewage water, 125t/d ground washing water COD Cr : 350mg/L, 15t/a Volume of flue gas: Volume of flue gas: 49t/h coal-fired boiler 55,000m 3/h 55,000m 3/h Waste 3 flue gas (release from 3 SO 2: 700mg/m , gas SO 2: 1,080mg/m , 485.2t/a 50-meter chimney) 314.2t/a Soot: 13,000mg/m 3, 5834.4t/a Soot: 130mg/m 3, 58.3t

Volume of flue gas: Volume of flue gas: 3 Alkali furnace flue gas 54,000m 3/h 54,000m /h (released from 80- Soot: 15,500mg/m 3, Soot: 155mg/m 3, meter chimney) 6833t/a 68.3t/a 3 3 SO 2: 4.5mg/m , 2t/a SO 2: 4.5mg/m , 2.0t/a White sludge and lime 52,000t/a (50% moisture) Landfill residue Sold for comprehensive Boiler coal residue 38,500t/a use by Cement Plant

Material Preparation 3,276t/a Sold to Fiberboard Plant bamboo residue Lime residue 2,600t/a Landfill Wastewater Treatment Solid 2,000t/a Landfill Station sludge waste Cooking knot and 1,600t/a Back for cooking residue Screening residue 1,590t/a Boiler combustion

Broke paper 500t/a Back to the workshop

Packing material waste 200t/a Supplier recycle

Domestic garbage 50t/a Landfill

4. Situation of up-to-standard pollutants emission • Up-to-standard discharge of wastewater Jinfu Company is a pulp and paper manufacturer, the discharge of wastewater by the Company shall meet the relevant requirements specified in the “Standard for Discharge of Water Pollutants from Pulp and Paper Making Industry” (GB3544- 2008). See in Table 20.

Table 20: GB3544-2008 Requirements for Emission of Pollutants by Pulp and Paper Manufacturers Benchmark Table 2: Emission Limit as of July 1, 2011 Volume of Chroma Ammonia Total Total Wastewater SS BOD 5 COD Cr AOX pH (dilution Nitrogen Nitrogen Phosphorus per Unit mg/L mg/L mg/L mg/L times) mg/L mg/L mg/L Product ≤60t/t 6~9 ≤50 ≤30 ≤20 ≤90 ≤8 ≤12 ≤0.8 ≤12 product

The total amount of various types of wastewater generated by Jinfu Company is 11,017t/d, all of which shall be transported to the Wastewater Treatment Station for treatment and then be discharged to Daduhe River, the treatment technique adopted is secondary biochemical processing: “ABR + Contact oxidation + High efficiency shallow vaporizing”.

The construction of the advanced treatment unit for Jinfu Company’s Wastewater Treatment Station (high efficiency shallow vaporizing system) has finished in May 2011 been commissioning ever since. In July 2011, Sichuan Provincial Environmental Protection Bureau organized the environmental protection check and acceptance activity, and the monitoring results are shown in the Table as follows.

Table 21: The Results of Environmental Protection Check and Acceptance of Wastewater Monitored at the Outlets of the Wastewater Treatment Station (July 2011, Unit: mg/l)

Monitoring Monitoring Monitoring Results Removal Standard Date Item I II III IV Daily Rate (%) Limit Average June 26 7.54 7.58 7.46 7.40 7.40 - / 6-9 pH June 27 7.14 7.48 7.36 7.56 7.14- / 6-9 June 26 16 16 32 32 24 50 Chroma 80.0 June 27 16 16 16 16 16 50

June 26 Suspened 24 21 25 27 24.2 30 89.8 June 27 substance 26 22 26 33 26.8 30 June 26 84 82 80 84 82.5 90 COD 89.4 June 27 70 67 73 65 68.8 90 June 26 22 19 18 21 20.0 20 BOD 5 91.9 June 27 18 17 18 17 17.5 20

June 26 Ammonia 1.454 1.373 1.409 1.412 1.412 8 94.7 June 27 Nitrogen 1.289 1.184 1.253 1.246 1.243 8

June 26 Total 0.108 0.060 0.043 0.047 0.064 0.8 98.3 June 27 Phosphorus 0.087 0.056 0.055 0.043 0.060 0.8

June 26 Total 2.266 2.138 2.221 2.106 2.183 12 92.6 June 27 Nitrogen 2.184 2.074 1.909 1.964 2.033 12 June 26 Volume of 292.0 314.0 320.2 329.2 313.8 / / wastewater

June 27 298.0 318.5 310.0 285.2 302.9 / /

June 26 Volume of 59.77 / 60 wastewater June 27 discharged 59.10 / 60 (pulp)

The monitored pollution burden of pulp production is 80.4-82.4%. The Table shows that the average volume of wastewater discharge actually monitored at the Wastewater Treatment Station is 7,400t/d, the discharge of wastewater per ton pulp is 59.44 ton, having met the requirement for benchmark volume of wastewater discharge per unit product as specified in the “Standard for Discharge of Water Pollutants from Pulp and Paper Making Industry” (GB3544-2008), the contents of COD, BOD5, ammonia nitrogen, total phosphorus, total nitrogen, suspended substance, pH value and chroma existing in the wastewater monitored at the outlets of the Wastewater Treatment Station have all met the limit requirements for the concentration of pollutants discharged by pulp and paper manufacturers as specified in the “Standard for Discharge of Water Pollutants from Pulp and Paper Making Industry” (GB3544- 2008) ( Table 2).

• Up-to-standard discharge of atmospheric pollutants All boiler flue gas and alkali furnace flue gas is processed by using the 3-field electrostatic dust catcher for removing the dust. The rate of dust collection is 99%, resulting in the up-to-standard emission of dust with the concentration ≤200mg/m3.

For the Project construction, the low-sulphur coal (0.35%) is used as the fuel, and the measure of limestone furnace desulphurization has been adopted for the 35t/h circulating liquidized-bed boiler (to ensure desulphurization efficiency ≥50%); as to the two small chain boilers, the emission of SO2 is up to standard without the application of desulphurization technology.

According to the monitoring activity conducted by Leshan Municipal Environmental Monitoring Station in September 2010 for check and acceptance, the Company’s emission of alkali furnace flue gas and boiler flue gas has been up to the standard. According to the “Monitoring Report for Environmental Protection Check and Acceptance of the Finished Construction Project”, the monitoring results of the construction project for the production capacity of 52,000t/a pulp and 57,000t/a paper products and the supporting facilities are shown in Table 22.

Table 22: Monitoring Report for Environmental Protection Check and Acceptance of the Finished Construction Project-Alkali Recovery Furnace Flue Gas Monitoring Treatme Assessment of Up-to-Standard Pollutants Results nt Emission efficienc GB16297-1996 GB9078-1996, Inlet Outlet y (Table 2), Level II Level II

Assess Limit Assessme Limit ment Value nt Result Value Result Soot (kg/h) 42 5.1 Up to Up to 87.9% 120 200 Soot (mg/m 3) 790 96.0 standard standard

SO 2 (kg/h) 5.64 5.64 Up to Up to 3 550 850 SO 2 (mg/m ) 106 106 standard standard Flue gas 53188 (Nm 3/h) Chimney height 80 (m) Designed efficiency of 99% dust collection Note: the monitoring data is the average value of 6 samples from 2-day monitoring activity.

Table 23: Monitoring Report for Environmental Protection Check and Acceptance of the Finished Construction Project---35t/h Boiler Flue Gas Monitoring Treatment Assessment Pollutants Results Limit Value efficiency Result Inlet Outlet Up to Soot (kg/h) / standard 95% 2 Up to Soot (mg/m 3) 1780 89 0 GB13271-200 standard 0 Standard for Type Up to II area in Time SO 2 (kg/h) 39.61 7.57 / standard Period II 80.9% 9 3 Up to SO 2 (mg/m ) 822 157 0 standard 0 Flue gas (Nm 3/h) 48194 Chimney height 50 (m)

Monitoring Treatment Assessment Pollutants Results Limit Value efficiency Result Inlet Outlet Designed efficiency of dust 99% collection Desulphurization efficiency as 50% required in EIA Report Note: the monitoring data is the average value of 6 samples from 2-day monitoring activity.

Table 24: Monitoring Report for Environmental Protection Check and Acceptance of the Finished Construction Project---Uncontrollable Emission Unit: mg/m 3 Hydrogen Sulfide Ammonia Poin Monitorin Monitoring Standar Assessme Monitoring Standar Assessme t g Date Data d Value nt Result Data d Value nt Result Up to 0.030~0.13 Up to 1# zero~0.04 standard 5 standard Up to 0.031~0.17 Up to 2# zero~0.04 standard 0 standard Up to 0.093~0.37 Up to 3# Sep 7~8 zero~0.004 0.06 1.5 standard 6 standard Up to 0.065~0.34 Up to 4# 0.003~0.005 standard 8 standard Up to 0.041~0.37 Up to 5# 0.004~0.009 standard 5 standard Note: the monitoring data is the average value of 6 samples from 2-day monitoring activity.

Assessment standard: Level II according to “The Standard for Discharge of Stink Pollutants” (GB14554-1993) (Table 1), hydrogen sulfide emission limit is 0.002mg/m 3, ammonia emission limit is 0.03mg/m 3. It is necessary to point out that Jinfu Company is planning to reconstruct the existing Alkali Furnace and Boiler, which is a part of the ongoing “Project of Technology Reform for Energy Saving” aimed for further reduction of pollutants emission based on the current up-to-standard emission of flue gas.

9. Existing system of environmental management • Environmental management institution

The current environmental management institution established by Jinfu Company is the Department of Security and Environmental Protection, which is staffed with five professionals in charge of environmental protection management during the period of the Project operation. Under the overall leadership of the General Manager, the Manager of the Department of Security and Environmental Protection is responsible for the routine work of the Plant’s environmental protection management and cleaner production, in addition, two part-time managers shall be designated by each workshop for the maintenance of the environmental protection facilities and the contact with the Department of Security and Environmental Protection. The Department has also two professionals in charge of the occupational health management.

• Duties of the environmental protection institution To implement the national and provincial laws, regulations and policies on environmental protection and the requirements of environmental protection administrations at various levels; carry out the Company’s environmental protection plans based on its own production processes and to formulate the environmental protection duties and rules for each department/division and post according to the Company’s environmental protection management policies.

To control the incurrence of environmental pollution and ecological damage during the Project construction and eradicate the behavior of uncivilized construction, at the same time providing guidance and conducting supervision on the control of “three wastes” and noise during the Project construction to minimize the pollution to the environment and the damage to the ecology.

To strictly implement the environmental protection rules; establish and complete the records of pollution sources during the operation process and the records of environmental protection facilities and process flows; conduct statistics on the data and statements of pollutants discharge and the operation situation of environmental protection facilities.

To conduct daily monitoring and maintenance on the environmental protection facilities and equipments and deal with the various types of environmental protection problems, at the same time keeping the records.

To conduct publicity activities on environmental protection and safe production and provide relevant technology training.

To strengthen the management, establish the emergency response plans and measures for combating abnormal discharge of wastewater and waste gas and minimize the impact of abnormal discharge.

To conduct safety management on the transportation and use of hazardous chemicals; to formulate and maintain the preventive measures for environmental risks and carry out the emergency response plans in case of environmental accidents; to conduct routine management on fire and explosion proofing facilities and gas defense devices and organize the drilling of emergency response and evacuation measures.

To provide protection and management on the Company’s employees’ occupational health.

• Environmental monitoring system The CDO online monitoring devices to be installed in the Wastewater Treatment Station.

Seasonal monitoring on the wastewater outlet to be conducted by Shawan District Environmental Monitoring Station, mainly the indices on: COD Cr , NH 3-N, SS and volatile phenol.

Half-year monitoring on ground water to be conducted by Shawan District Environmental Monitoring Station, mainly the indices on NH 3-N, COD Mn , smell, taste and chroma.

Seasonal monitoring on the boiler and alkali furnace flue gas to be conducted by Shawan District Environmental Monitoring Station, mainly the indices on SO 2 and soot.

Half-year monitoring on the uncontrollable emission of waste gas to be conducted by Shawan District Environmental Monitoring Station, mainly the indices on SO 2 and soot.

Half-year monitoring on the Plant boundary noise to be conducted by Shawan District Environmental Monitoring Station, including the monitoring on Level A continuous noise in daytime and nighttime.

Overview of the ongoing construction Projects 1. Contents of ongoing construction Project The main contents of the ongoing construction Project of Technology Reform for Energy Saving conducted by Jinfu Company include the technology reform for upgrading of the Alkali Recovery Workshop and the Coal-Fired Boiler. See Table 14.

2. Variations of pollutants discharge after the implementation of the ongoing Project The ongoing Project of Technology Reform for Energy Saving is mainly a reconstruction of the facilities discharging atmospheric pollutants, after which the discharge of atmospheric pollutants and water pollutants shall be reduced. See in the Table as follows.

Table 25: Generation and Discharge of Wastewater from the Plant after the Ongoing Project Construction Waste Gas Facility Fuel Treatment Measures Discharge of Pollutants Source

Limestone furnace desulphurization, 4-field One 50t/h Coal-fired electrostatic dust Volume of flue 3 circulating thermal value: collection, low-nitrogen gas: 77,600m /h Discharged combustion. Boiler fluidized-bed 3500kcal/kg, SO 2: through a 80- coal-fired sulphur Efficiency of dust 335.3mg/m 3 meter boiler collection ≥99.8%; content: 0.35% Soot: 82.8mg/m 3 chimney. Efficiency of SO 2: 259.1t/a desulphurization ≥60% Soot: 94.8t/a 4-field electrostatic Volume of flue Combustion 3 NO x: 644t/a Alkali 225tds/d flue dust collection, gas: 54,000m /h material: 55% furnace gas efficiency of dust Soot: 96mg/m 3 black liquor 3 collection ≥99.8% SO 2: 106mg/m

According to comparative analysis, the discharge of atmospheric pollutants such as SO2 and soot from the Plant of Jinfu Company has been reduced, in specific, the reduction of SO2 emission by 57.1t/a and the reduction of COD emission by 309t/a, an indication of significant environmental benefit.

3. Balance of steam evaporation after the implementation of the ongoing Project of Technology Reform After the reconstruction of the Boiler and the Alkali Furnace, the steam balance has been realized. See in the Figure as follows.

Figure 4: Diagram of the Plant’s Steam Balance after the Ongoing Project of Technology Reform Unit: t/d

Boiler self-use steam and pipeline

loss

1164 Pulp and Paper 1248 Boiler 36 Making System

84 408 23 Alkali Furnace self- Alkali Recovery Production System 745 use steam and pipeline 661 Alkali Turboset 745 (3.82MPa) Furnace (0.4 1.2MPa) Alkali Recovery 253 Stripping System

Summary of pollutants discharge and existing environmental problems 1. Summary of pollutants discharge The current discharge of pollutants and the volume of pollutants discharge after the implementation of the ongoing Project of Technology Reform conducted by Jinfu

Company is summarized in the Table as follows.

Table 26: Jinfu Company’s Current Volume of Pollutants Discharge and the Volume of Pollutants Discharge after the Implementation of the Ongoing Project of Technology Reform Total Amount of Pollutants Discharged Index for Aggregate Control Current Future Specified by the Concentration and Concentration and Index Local Amount of Amount of Pollutants Environmental Pollutants Discharged by the Protection Discharged by the Plant after the Department Plant Implementation of the Ongoing Project Volume of 8,250m 3/d (60t/t dry 8250m 3/d (60t/t dry wastewater / pulp) pulp) discharged Wastewater COD 90mg/L, 252.5t/a 90mg/L, 252.5t/a 810t/a

NH 3-N 8mg/L, 22.5t/a 8mg/L, 22.5t/a 81t/a

3 3 SO 2 700mg/m , 316.2t/a 240.5mg/m , 259.1t/a 320t/a

Waste gas Soot 150mg/m 3, 126.6t/a 90mg/m 3, 94.8t/a 130t/a

3 NO x / 616.3mg/m , 644t/a /

2. The Company ’s environmental problems and solutions At present, Jinfu Company has realized up-to-standard discharge of wastewater and waste gas, the noise monitored at the Plant boundary is within the limit, the discharged solid waste has realized comprehensive use and innocuous treatment. However, there are some environmental problems such as the hidden environmental risks in the storage and use of liquid chlorine, the short-distance impact of the pulpmaking stink gas, the failure in realizing stable and long-term up-to-new standard benchmark wastewater discharge per ton pulp.

Jinfu Company has realized up-to-standard discharge of pollutants, however, due to the limitation of the existing pulpmaking process, the burden of pollutants in the generated middle-stage wastewater is higher than the standard, after being treated at the Wastewater Treatment Station, the concentration of COD may reach the standard of 150mg/l, or reaching the new standard of 90mg/l after advanced treatment. Still, the discharge of pollutants (such as AOX) monitored at the wastewater outlets of the workshops and production facilities can not reach the new standard; in particular, the benchmark volume of wastewater discharge per ton pulp may not be able to meet the

42 limit of new standard, so the total amount of water pollutants discharge and aggregate reduction cannot be ensured.

The Project of Technology Reform is in fact an effective guarantee measure for solving these problems fundamentally, the control of the generation of wastewater and pollutants from sources ensures the stable and overall realization of up-to-new standard emission by the Company, at the same time, the generation of pulpmaking stink gas and its impacts may be mitigated to a much lower level, the hidden environmental risks brought by liquid chlorine may be eliminated from the source.

The basis for conducting the Project of Technology Reform includes the established Wastewater Treatment Station, the Alkali Furnace, the Boiler, water and power supply facilities, as well as the existing risk prevention measures and emergency response plans such as the storage tanks and cofferdam. Since the Project is just a reconstruction for upgrading of the production processes without the addition of pulpmaking capacity, plus the significant reduction of hidden environmental risks, so the abovementioned equipments and facilities are sufficient for meeting the demand. Meanwhile, a 2,500m 3 water pool shall be built in the Wastewater Treatment Station for collecting the accident wastewater generated under abnormal situation.

3. Requirements for prevention of environmental pollution caused by the dismantled devices during the implementation process of the Project for Technology Reform The reconstruction activities shall be conducted on the existing Plant area without changing the original functions of land use. In order to implement the “Notice on Substantially Doing Well the Job of Prevention and Control of Environmental Pollution During the Process of Company Relocation” (SEPA, Huanban [2004] 47) and eliminate the unpredictable factors and the unnecessary negative social impacts, according to the EIA Report: While dismantling the outdated cooking balls, liquid chlorine steel tanks, bleaching water pool, grooves and tanks and pipelines, the hidden facilities such as the ground pipelines must be dismantled simultaneously, the raw and auxiliary materials, products and discarded materials related to the dismantled facilities must be properly handled; the liquid chlorine steel tank must be recycled by qualified units, the eliminated equipments such as the cooking balls must not be sold to other pulpmaking enterprises. The incurrence of environmental pollution accidents caused by the dismantle of facilities must be absolutely avoided.

2.3 Analysis of the Project construction engineering and analysis on the processes compared with those of substitute equipments The comparison on the change of processes prior and post to the implementation of the Project for Technology Reform

After the technology reform, bamboo pieces shall be used as the raw material for pulpmaking, which includes the processes of wet raw material preparation, DDS cooking (low energy consumption intermittent substitution), vacuum pulp washer for pulp washing, medium-concentration sealed and pressured screening, delignification and medium-concentration chlorine dioxide bleaching.

The method of sodium chlorate reduction (R8 method) is adopted in chlorine dioxide preparation.

The production of cultural paper is finished on a 1,760mm multi-cylinder long- mesh paper machine working at a speed of 200m/min; the production of domestic paper is finished on 11 sets of 2200mm hygiene paper machine working at a speed of 180m/min. No change to the papermaking room before and after the technology reform.

The process of alkali recovery includes the vaporizing concentration in a 5-effect evaporator and the caustic recovery in a medium-pressure low-stink alkali furnace.

The process flow being assessed includes the pulpmaking process and chlorine dioxide preparation process. The comparison on the change of overall process flow before and after technology reform is illustrated in Figure 2-5.

Figure 5: Jinfu Company’s Process Flow after Technology Reform

Stained Pulpmakin Purchased Alkali Recovery condensation To Wastewater g bamboo Workshop Treatment waterW3 Workshop Stockpiling Station Vaporating Black Condensation System Steam header Wet Raw liquor W1 (5-cylinder 5-effect vaporator) Preparation dust Material G2Cooking stink gas G3 Steam

4-field dust Washing tail gas SS Concentrated Black DDS Cooking collection & discharge System Combustion System Waste Gas (intermittent replacement (225tds/d, 3.82MPa) Alkali furnace Washing Tower cooking tank, discharging tank, (Waste mixing tank & waste heat flue gas G1 power generation unit) Collected gas from washing, Clear screening and bleaching (G4) Medium- White Quicklimewater Causticization Landfilling Concentration Knot sludge Black powder System liquo 4-Series Vacuum White liquor r Pulp Washing Unit Boiler Room Chemicals Delignification Raw WorkshopExhausting tail Purchased gas G5 water Desalination System coal Desulphurization use Station4-field dust collection Quicklime Desalination & release Medium- powder water Tail Gas Concentration Sealed Washing & Pressured Screener 50t/h Circulating Boiler flue gas

Condensati Liquidized-Bed Boiler G1 Tail gas 2-Series Vacuum Steam header on water Steam ClO 2 Pulp Washing Unit solution Absorption Wastewater ECF Bleaching Treatment Sodium ClO 2 gas chlorate (ClO 2 bleaching) Wastewater Treatment Partially ClO (D 0-EOP-D1 3-stage 2 Middle-stage Station reuse bleaching) ） wastewater W3 Methan Generato (ABR + Contact oxidation + Concentrated r Chemical oxidation, shallow Up-to-standard Bleaching Pulp Storage Tower vaporizing Level III processing) discharge to sulfuric acid Daduhe River

To 1.5 SS NaOH Paper pulpmaking Papermaking Paper Machine White Filtrating, machine Hot Workshop white water Water Recycle System water Melting (Flocculation sedimentation + White water W2 shallow vaporizing)

SS liquid Finished Paper Storehouse Papermaking Fiber Back to papermaking

To alkali furnace Workshop workshop

Note: The shadowed contents are proposed technology reform in the Project

Figure 6: Jinfu Company’s Process Flow before Technology Reform

Pulpmakin g Boiler Room Workshop Purchased bamboo Raw pieces Purchased coal wate Desalination Stockpiling Quicklime Desulphurization ruse powder Desalination water 4-field dust collection & release Dry Raw Material 50t/h Circulating Liquidized-Bed Boiler flue gas

BoilerSteam Cooking System (10X25m 3 cooking balls, Steam header discharging tank) Alkali Recovery

Workshop Stained condensation To Wastewater Treatment Station Knot Boring System water Vaporizing 4-Series Vacuum Pulp Black Concentration System

Washing Unit liquo (5 -cylinder 5 -effect evaporator) r Steam header ～

SS Concentrated Black Steam

Sealed Screening Liquor Tank 4-field dust collection & release Combustion System Alkali Furnace (225tds/d, 3.82MPa) (Waste mixing tank & waste heat power generation unit) flue gas

Clear water White Causticization Landfilling Quicklime sludge NaOH System powder NaClO Back to cooking White Cl process 2 CEHP 4-Stage

Bleaching System Wastewater Treatment (chlorine-free Middle-Station Wastewater Treatment Partially H O bleaching) 2 2 stage Station reuse wastewater (ABR + Contact oxidation + Chemical oxidation, shallow vaporizing Level III Up-to-standard processing) discharge to Daduhe Bleaching Pulp Storage River Tower Papermaki ng To pulpmaking Paper Paper Machine White Workshop Papermaking Workshop workshop machine Water Recycle System (Flocculation sedimentation + white shallow vaporating) water 46

White water

Finished Paper Storehouse Fiber Back to papermaking

Brief introduction of the pulpmaking process after technology reform and the comparative analysis According to the plan of the Project construction, an overall reconstruction shall be conducted for upgrading the pulp production facilities. The existing main equipments of pulpmaking shall be replaced or new equipments shall be added; the auxiliary equipments such as the cylinders and pumps shall be remained if they can meet the post-reform production demand, otherwise they will be replaced or new equipments shall be added.

After the reconstruction, the knot boring, screening, delignification and bleaching systems shall undergo medium-concentration operation, the volume of water consumption shall be reduced significantly.

1. Raw material preparation (changed into wet raw material preparation) Pre-Technology Reform : Dry raw material preparation. The purchased materials shall be stockpiled for 15~30 days before being moved to the cooking process, the small amount of material residue shall be used as the Boiler fuel.

Post-Technology Reform : The purchased bamboo pieces, after roughing (by used screening equipment) process, the qualified material shall be sent to the bamboo washing system, and the washed pieces shall be dehydrated by a double-helix dehydrator (water content 45%), then be sent to the storehouse to wait for cooking. The disqualified bamboo pieces shall be re-shredded by a drum chipper and send to the screening system again.

The bamboo washing water, after being filtered out of the drum washer and double-helix dehydrator and screened by a slanted screen and then a cant board sedimentation tank for flocculation and purification, shall be for reused for supplementing the middle water from the Wastewater Treatment Station. The sludge residue from the cant board sedimentation tank shall be condensed and mixed with the small amount of raw material residue for being used as the Boiler fuel.

The process flow of the raw material preparation after technology reform and the wastewater generation is illustrated in the Figure as follows.

Figure 7: Process Flow of Raw Material Preparation and Pollutants Generation Links Tail gas Screening dust G2 Washing Dust Purchase Stockpiling Screen Washing d bamboo Screeningresidue pieces er residue Dust washing Wastwater water discharge Drum Bamboo Purified water after Treatment Station sedimentation middle water Washer reuse Raw Material Preparation Double-Helix Dehydrator Wastewater Treatment Bamboo washing Belt transport wastewater Partial wastewater Qualified bamboo pieces W3 Bamboo Bamboor to be used for cooking Pieces esidueS Sludge S1 process 1 Storehouse To wastewater treatment station

2. Cooking (changed into intermittent replacement cooking technology) Pre-Technology Reform : Cooking ball cooking. The bamboo pieces shall be fed into 10 25m 3 cooking balls by the belt conveyor, then the cooking liquor (mixture of alkali recovery white liquor, added caustic soda and sulphur alkali and some black liquor) shall be added. After 4h steam cooking, the pulp liquid shall be discharged to the discharging tank to get the crude pulp, which is ready to go through the process of washing, screening and bleaching.

Post-Technology Reform: The upgrading of the cooking system is the core part of technology reform: to build a low energy consumption system of intermittent replacement cooking as well as a supporting system of cooking stink gas collection and treatment. The cooking system is composed by 4 135m 3 cooking tanks, 3 pressure vessels (warm black liquor tank, hot black liquor tank and hot white liquor tank) and three normal pressure tanks (cold black liquid tank, recovery tank and discharging tank); one photo-oxidation waste gas purifier shall be installed for cooking the high- concentration stink gas, while the low-concentration stink gas shall be sent to the pulpmaking room to be processed at the waste gas washing tower, an equipment of the washing, screening and bleaching process. The consumption of cooking steam after technology reform shall be reduced from 2.1t/t pulp to 0.75t/t pulp, and the cooking time shall be reduced from 240min to 180min.

The cooking process of low energy consumption intermittent replacement after technology reform includes : loading cooking (LC), initial cooking (IC),

48 middle-cooking (MC), final cooking (heating/insulation) (FC), replacement cooking (RC) and discharge cooking (DC) for removing the lignin and resin substance, then qualified crude pulp shall be ready for the washing and screening process.

The cooking soup is white liquor (including cold white liquor and hot white heat), the replacement liquor used in the extraction process includes recycled black liquor, cold black liquor, warm black liquor and hot black liquor. The six types of soup (replacement liquor) are stored in six tanks respectively for being used in different cooking stages. See in the Table as follows.

Table 27: Types of Soup and Replacement Liquor Used for Different Stages of Cooking Storage Title Source Use Remarks Tank Cold Cold Alkali Recovery To supplement the 100 white white Room, alkali mixing content of alkali in the liquor liquor process loading liquor and tank replacement liquor during the loading process and cooking process Hot Hot Replacement of cold To supplement the 150~165 white white white liquor and content in replacement heat heat tank heating liquor during middle- stage cooking process Black Recovery Black liquor Used as the 70~90 , liquor tank extracted in replacement liquor sent to Alkali washing and during replacement Recovery screening process and recovery process; Room after Used as diluent being used liquor during and heated discharging process Cold Colk Low Used as loading ~110 black black temperature loading liquor during loading liquor liquor liquor to be replaced process; tank in initial cooking The rest cold stage; black liquor to be Cooling filtered by a fiber down warm black filter and sent to the liquor. Alkali Recovery Room, the filtered

fiber to be sent to the Discharging tank

Table 28: Types of Soup and Replacement Liquor Used in Different Stages of Cooking (Cont’d) Storage Title Source Use Remarks Tank Warm Warm Warmer Used as the 110~133 black black loading liquor to be replacement liquor liquor liquor replaced during during initial cooking tank initial cooking process process; Colder loading liquor to be replaced during middle cooking process; Colder cooking liquor to be replaced during replacement and recovery process. Hot Hot Hotter Used as the 150~165 black black loading liquor to be replacement liquor liquor liquor replaced during during middle cooking tank middle cooking process process;

Hotter cooking liquor to be replaced during replacement and recovery process.

• Loading cooking (LC) The bamboo pieces are transported from the material storehouse and fed by a belt conveyor to the cooking tank, during which the cold black liquor (loading liquor) is filled to the cooking tank from the cold black liquor tank through a loading pump overhead, the loading and soaking process continues until the loading is finished. Before being filled into the cooking tank, the loading liquor shall be added with cold white liquor to get the proper content of alkali liquor. The loading process is usually is finished within 35min.

• Initial cooking (IC) After the loading and soaking, the initial cooking stage begins. The warm black liquor shall be pumped from the warm black liquor tank to the bottom of the cooking tank to push the previously filled loading liquor out of the cooking tank, i.e., to replace the loading liquor with initial cooking liquor from bottom to top, and the temperature after initial cooking shall be 133 . The loading liquor that has been replaced shall be stored in cold black liquor tank and warm black liquor tank respectively according to different temperatures. Before being filled into the cooking tank, the initial cooking liquor shall be added with cold white liquor to get the proper content of alkali liquor. The initial cooking process is usually is finished within 30min.

A part of the cold black liquor that has been replaced and stored in the cold black liquor tank shall be used as the loading liquor during loading and soaking stage, the rest cold black liquor shall be pumped into the black liquor fiber filter for filtrating, the filtrated black liquor shall be sent to the Alkali Recovery Room for vaporizing, and the filtrated fiber shall be reused in the discharging tank.

• Middle cooking (MC) After initial cooking process, the middle cooking stage begins. The hot black liquor shall be pumped from the hot black liquor tank to the bottom of the cooking tank to push the previously filled loading liquor out of the cooking tank, i.e., to replace the initial cooking liquor with middle cooking liquor from bottom to top, and the temperature after middle cooking shall be 165 . The initial cooking liquor that has been replaced shall be stored in warm black liquor tank and hot black liquor tank respectively according to different temperatures. Before being filled into the cooking tank, the middle cooking liquor shall be added with hot white liquor to get the proper content of alkali liquor. The initial cooking process is usually is finished within 25min.

• Final (heating/insulation) cooking (FC) After middle cooking process, the final (heating/insulation) cooking stage begins. The cooking liquor shall be pumped out from the middle of the cooking tank

by the soup circulating pump, then will be heated by a steam heater and filled on top and through bottom of the cooking tank, so as to ensure the proper temperature for cooking until the cooking process finishes. The final cooking process is usually is finished within 60min. A part of the warm black liquor in the warm black liquor tank shall be cooled down by a cooler and then send to the cold black liquor tank for storage.

• Replacement cooking (RC) After the cooking process, the black liquor shall be pumped from the recovery tank by a recovery pump to the bottom of the cooking tank to push the previously filled loading liquor out of the cooking tank, i.e., to replace the cooking liquor with recovered liquor from bottom to top, and the temperature after middle cooking shall be reduced to below 100 . The cooking liquor that has been replaced shall be stored in hot black liquor tank and warm black liquor tank respectively according to different temperatures. The replacement process is usually is finished within 15min

• Discharge cooking (DC) After the temperature inside the cooking tank has been reduced to below 100 , the discharging tank shall be switched on to pump the pulp into the discharging tank for storage, lasting for 15min. During the pumping process, the black liquor shall be pumped from the recovery tank by a dilution pump to the cooking tank, from the top, bottom and middle simultaneously, the diluted pulp shall be pumped by a crude pulp pump to the process of washing, screening and bleaching.

• Stink gas treatment The hot air released from loading cooking and discharging processes shall be collected by the exhausting system and then sent to the Spray Tower for being cooled and released.

• Others The cooking process is finished within the same cooking tank, the soups and liquors added during different stages are controlled by the automatic control system; the hot water from each heat exchanger shall be used as the washing liquor in washing and screening process.

The process flow of intermittent replacement cooking after technology reform is illustrated in Figure 8. Figure 8: Process Flow of Pulpmaking After Technology Reform

White liquor from alkali recovery processCooking stink gas G3 Spray Cooling Tower 30-m chimney

Filtrate Black liquor to alkali Black Liquor Filter W1 Filtrat Washed Cooking tank recovery Fiber back to discharging tank bamboo Loading Loading Cooking liquor pieces Cold Black Liquor (LC) ~110 ） (）100 ）, ~35min) Tank (~110 ) ~133 ） Partial warn black liquor used for cooling Initial Cooking 52 (IC) ~133 ） ~165 ） Steam

Replacement liquor Warm Black Cold White Liquor Tank Liquor Tank

Heat Exchange / Heating

Middle Cooking Replacement liquor (MC) Hot Black Liquor Hot White Liquor

Tank (150~165 ) Tank ( 150~165 )

Black liquor from extraction process

Replacement Replacement Cooking liquor Recovery Tank

(RC) (）100 )

Discharging Tank Cooking Diluent liquid (DC)

(）100 ）, ~15min)

To washing, screening &

Cooking crude pulp bleaching process

3. Washing, screening and bleaching (changed into medium-concentration washing and screening, with the added process of delignification and the changed process of ClO 2 bleaching)

Pre-Technology Reform : Vacuum pulp washer washing, pressured screening, medium-concentration grit catcher purifying and low-chlorine 4-stage bleaching.

The bamboo pulp from the discharging tank during cooking process shall first go through the knot borer to remove the bamboo knots, then be sent to the 4-stage vacuum pulp washing unit for backwashing to extract black liquor, the washed pulp (paper pulp concentration about 10%) shall be stored in the vertical Pulp Storage Tower temporarily. The black liquor shall be sent to Alkali Recovery Room for vaporizing concentration. The diluted white water from paper machine after heat exchange shall be used for washing. The rate of black liquor extraction is above 95%.

The washed and diluted pulp shall be sent to a sealed 2-stage screener for screening, the accepted pulp shall be purified by a grit catcher and then be dehydrated by a high-concentration pulp washer to reach the standard concentration (5%) for bleaching. The final stage concentration uses clear water, part of the dehydrated water shall be used for screening, part shall be discharged to the Wastewater Treatment Station.

The concentrated pulp from the concentrator shall go three four stages of bleaching to get the qualified pulp (whiteness 80~85% and concentration 10%) to be sent to papermaking workshop, the four stages are: Chlorination Tower → Vacuum Pulp Washer → Alkali Processing Tower → Vacuum Pulp Washer → H-Stage Bleaching Tower → Vacuum Pulp Washer → P-Stage (Hydrogen Peroxide ）Bleaching Tower → Vacuum Pulp Washer.

Post-Technology Reform : The process of washing, screening and bleaching after technology reform includes four stages: Knot boring for fiber recovery, vacuum pulp washing for black liquor extraction, delignification and screening for purification, ECF bleaching. All main equipments in this process needs replacement or upgrading.

• Knot boring The crude pulp from cooking process shall be sent to the knot borer for knot boring, and the discharged uncooked bamboo knots shall be sent to the vibrating screener for fiber recovery, the left bamboo knots shall be sent back to the cooking process. The crude pulp left in the knot borer shall go through the washing process for extracting black liquor.

• Vacuum pulp washing for black liquor extraction The pulp after knot boring shall be sent to the 4-series vacuum pulp washing unit (reserved equipments) for pulp washing and black liquor extraction, the extracted black liquor shall be sent to the cooking recovery tank for being used and heated and then be sent to the Alkali Recovery Room for vaporizing concentration. The washed pulp shall be sent to the delignification system.

• Delignification and screening for purification

After the extraction of black liquor during washing process, the pulp shall be sent to the medium-concentration pump of the delignification system and be heated by the steam heater to 100 , then be sent to the medium-concentration mixer for mixing with oxygen, then be sent to the oxygen reactor for delignification reaction (100~105 , 0.5MPa). The NaOH and MgSO 4 needed for reaction shall be added to the bottom of the vacuum washer in early stage, and the needed oxygen shall be added prior to the medium-concentration mixer. The time needed for delignification reaction is 60min, after which the pulp shall be sent to the oxygen discharging tank for dilution on the bottom, then be sent to the newly installed Level I two-section pressured screener for sealed screening and purification. The pulp after screen shall be sent to the newly equipped 2-series vacuum pulp washer for washing, the dehydrated diluted black liquor shall be sent back to the 4-series vacuum pulp washer, and the washed pulp shall be sent to the bleaching system.

The bleaching water from EOP bleaching process and the paper machine white water shall be used as washing water in the vacuum pulp washer after delignification.

Oxygen preparation system: The supporting oxygen preparation system to delignification adopts the technique of micro-positive pressure absorption and vacuum desorption for oxygen preparation with the production capacity at 250Nm 3/h, it shall be used for EOP bleaching besides delignification.

• Chlorine-free bleaching (D0-EOP- D1) The washed pulp shall be heated to 60 by the steam heater during D 0 stage and then be sent to the medium-concentration mixer during D 0 stage, and the ClO 2 liquid shall be added prior to the mixer; the mixed pulp shall be sent to the D 0-stage Bleaching Tower for 45min bleaching, then be sent to D 0 stage vacuum pulp washer (reserved equipment) for washing, the washed pulp shall be sent to EOP bleaching process for further bleaching.

After D 0-stage washing, the pulp shall be heated to 85 by EOP steam heater and then be sent to the medium-concentration mixer, H 2O2 and NaOH shall be added prior to the medium-concentration pulp pump, O 2 and medium-pressure steam shall be added prior to the medium-concentration mixer; the mixed pulp shall go through 25min reaction in EOP Upflow Tower and then 90min reaction in EOP Downflow Tower, after which the pulp shall be pumped into EOP Vacuum Pulp Washer (reserved equipment) for washing and then for D 1-stage bleaching.

After EOP washing, the pulp shall be heated to 75 by D 1-stage steam heater and then sent to the medium-concentration mixer, ClO 2 liquid and medium-pressure steam shall be added prior to the medium-concentration mixer; the mixed pulp shall be sent to D 1 Upflow Tower for 20min reaction and D 1 Downflow Tower for 160min reaction. After reaction, the pulp shall be diluted at te bottom of the Tower and be pumped to D 1 Vacuum Pulp Washer (reserved equipment) for washing, after which the pulp shall be sent to the post-bleaching Pulp Storage Tower for storage and then be sent to the papermaking workshop.

The paper machine white water shall be used as washing water in D 1 Vacuum Pulp Washer (bleaching end), after which the filtrate shall be sent to D 0 Vacuum Pulp Washer (stage-1 bleaching) for washing. The hot water after heat exchange from the cooking process shall be used as washing water in EOP Vacuum Pulp Washer. The filtrate from D0 and EOP stage shall be partially used for pulp dilution prior to D 0 and EOP stage pulp washing, the rest (bleaching wastewater) shall be sent to Wastewater Treatment Station for treatment.

Waste gas collector shall be installed at each outlet of waste gas from the washing, screening and bleaching process, including black liquor filtration, crude pulp knot boring, vibrating screener screening, deoxidation discharge, vacuum pulp washer and concentrator, then be sent to the Washing Tower where it is washed and discharged, the washing water shall be sent to Wastewater Treatment Tower for treatment or be reused in Bleaching Tower.

After technology reform, the efficiency of black liquor extraction shall be increased from 95% to 97%, the burden of bleaching process white pollution shall be reduced greatly, the volume of wastewater generated during bleaching process shall be reduced as well.

The process flow of washing, screening and bleaching after technology reform and the pollutants generation links are shown in Figure 9 and 10.

Figure 9: The technological process of washing, screening

Crude pulp pump Crude pulp cooking

Crude pulp mixing tank Pulp Knot Shake frame flat Moderate concentrated remover Bamboo knot S2 screen

Hot white water ～ Four-series vacuum washer unit To alkali recovery after using and (counter-current washing) Black liquor W1 heating in cooking section ～ MgSO 4 + alkali solution Air Blower Direct heating Oxygen delignification N gas,～etc.～ heater 2～ Steam Absorption tower Gas flaring Oxygen delignification moderate concentrated mixer Desorption ga s Oxyge Desorption tower Oxygen delignification reactor N2 used in EOP PSA oxygen generator bleaching section 2 Oxygen delignification blowout ～pot Good pulp

Recovered pulp Pulp sludge Section ～1～ pressure Section ～2～ pressure screen Grit removal device S3 Diluted Outlet of Good Good pulp Two-series vacuum washer

Natural color pulp Pulp density 10% Steam for bleaching Steam (direct heating) ～ Pulp storage tank

Gray water To waste water treatment station ClO 2 D tower+ Vacuum Washer 0 W3 Outlet of washing water in D 1 section

Oxygen Outlet of washing water in

H 2 O 2 + alkali solution EOP tower + vacuum washe EOP section

Hot water for heat exchange in cooking section

ClO solution 2 D1 tower+ Vacuum Washer

Paper machine white water + Pulp density 10% clean water

Bleached bamboo Vertical pulp storage tower

Figure 10: The technological process of pulp-making before Water and a small Stockpiling amount of fermentation Qualified bamboo in accumulator Bamboo residue Screening Direct heating Steam Small bleed gas

Cooking liquid Cooking in spherical digester (10～spherical～ Thick white liquid Alkali tank digesters～with～a～volume～of～ 25m 3, 4h, 165

Added liquid alkali and Blowout pot Blowout gas sodium sulfide

Cooking slurry: pulp density12% Crude pulp pool

Pulp

Moderate concentrated remover Knot Shake～frame～ Pulp sludge H O bleaching drainage 2 2 flat～screen

Hot white water Vacuum washer unit Black liquor To alkali recovery workshop ～ (four-series, counter-current Good pulp Filter drainage Reco Section 1 pressure screen Section 2 Grit Pulp residue pressure screen Good Concentration drainage Good pulp Clear Network concentrated washer water Pulp density 5% Pulp storage tower Screening waste water (gray water)

chlorine Gasification chlorination tower+ washer To waste water treatment statio Counter -current

Alkaline solution ～ Alkali treatment tower + washer Bleaching waste water Steam Direct heating Hypochlorite solution H segment bleaching tower + washe

Hydrogen peroxide solution ～ H O bleaching waste water P segment bleaching tower + washer 2 2 Clean water Pulp density 10% Vertical pulp storage tower Re-use in washing, screening

Bleached bamboo pulp

4. The main indicators of pulping process before and after the technological transformation

The main indicators of pulp production before and after the implementation of the technological transformation project can be seen in the following table.

Table 29: The main pulping technology indicators before and after technological transformation Situation before the technological After the implementation of technological transformation No. transformation Parameter name Unit Quantity Description

Loss in 1 % 3.00% bamboo screening

Water consumption for 25t washing water / 2 t/t 25.00 Dry material preparation, bamboo washing t dried bamboo Loss in bamboo screening is 3%

Loss in 3 % 2.00% bamboo washing

Alkali consumption for 4 % 17.00% Na 2OBased on Na 2O 17.00% cooking

5 Sulfidity % 20.00% 20.00%

Alkali concentration in 6 g/l 100.00 Na 2OBased on Na 2O 100.00 cooking

Black 7 % ≥97 95 liquor extraction rate

Unscreened yield is 8 Unscreened yield % 50.00% 50% 48 ~ 51%, calculated as 50% Desludging rate of 9 % 2 Opposed to pulp inlet 2% removing system Total desludging 10 rate of screening % 2 Opposed to pulp inlet 3% system 11 Oxygen reaction time min. 60 Oxygen-free delignification system

Oxygen reaction 12 100 105 temperature

Situation before the technological After the implementation of technological transformation No. transformation Parameter name Unit Quantity Description Top pressure of 13 MPa 0.5 oxygen reactor Based on 100% NaOH consumption in 14 % 3.5 NaOH meter (using new O2 section alkali)

MgSO 4 consumption 15 % 0.5 Based on 100% MgSO 4. in O 2 section Oxygen consumption 16 % 3 Based on100 O2. in O 2 section Loss of oxygen 17 % 3.0 delignification Total amount of effect CEHP four-section 18 ive chlorine in kg/t 47.34 chlorine bleaching process is used bleaching Liquid chlorine consumption in

Total consumption of 100 ClO 2 Based bleach: 65kg / t 19 kg/t 18.00 Alkali-chlorine consumption in ClO 2 in bleaching on100 ClO 2. 20 Total loss in bleaching % 6.00 bleaching: 35kg / t H O 21 D0 reaction time min. 45 65kg/t 2 2 consumption in D0 reaction bleaching: 65kg / t 22 50 70 temperature pH value in 23 % 34 D0 section Based on 100% NaOH consumption in 24 % 1.5 NaOH meter (using new EOP section alkali)

H2O consumption in 25 % 0.8 Based on100 H2O2. EOP section

O2 consumption in 26 % 0.50 Based on100 O2. EOP section The reaction time in upflow section is 25min., the 27 EOP reaction time min. 25+95 reaction time in down-flow section is 95min. Reaction temperature 28 80 85 in EOP section pH value in 29 11 12 EOP section The reaction time in upflow section is 20min, the 30 D1 reaction time min. 20+160 reaction time in down-flow section is 160min.

Situation before the technological After the implementation of technological transformation No. transformation Parameter name Unit Quantity Description D1 reaction 31 70 75 temperature PH value in D1 32 34 section

ClO 2 consumption for 33 chilled water t/t 100.00 preparation Concentration of 34 g/l 8-10 ClO 2 solution

Brief introduction to the technological process in chemical workshop Before the technological transformation, the chemicals used in bleaching were purchased from the outside, thus there was no chemical workshop.

In this technological transformation, a set of new 4t/d system for chlorine dioxide preparation has been added, so as to provide raw materials for the bleaching. The project has adopted SVP-LITE (R8 Method) process in production. Using sodium chlorate as raw material, methanol can be reduced into ClO 2 under the condition of strong acid (sulfuric acid). The method has features of high yield, continuous production and easy to operate.

1. The production principle of chlorine dioxide preparation

The reaction equation of R8 Method is as follows:

Main reaction: 3NaClO 3+2H 2SO 4+2/3CH 3OH

= 3ClO 2+ Na 3H(SO 4)2+1/2HCOOH+7/3H 2O+1/2CO 2

Side reaction: 3NaClO 3+2H 2SO 4+3/2CH 3OH

= 3/2ClO 2+3/4Cl 2+ Na 3H(SO 4)2+9/2H 2O+3/2CO 2 In a case of the existence of NaCl, other side reaction can occur:

3NaClO 3+3NaCl+4H 2SO 4=3ClO 2+3/2Cl 2+ 2Na 3H(SO 4)2+3H 2O

The technological process in chlorine dioxide preparation The equipments used in production is supplied as a complete set, including chlorine dioxide reactor, chlorine dioxide absorber, chlorine dioxide tail gas scrubber, reboiler of reactor, Glauber's salt filter, condenser, injector and technological ventilator. Among them, the chlorine dioxide reactor, which is the core device, is also

61 known as reaction (chlorine dioxide gas) - crystallization (sodium sesquicarbonate crystal) device.

NaClO 3 shall be dissolved by water in dissolving tank and turn into sodium chlorate solution with a concentration of 650g/l, after clarification, the solution shall be pumped into storage tank, and then it shall be sent into the reactor through a filter; After filtration, methanol shall be mixed with water for dilution, and then it shall be sent into the reactor; sulfuric acid shall also be sent into the reactor after filtration.

Through metering pump, 3 kinds of materials shall be continuously added into the reactor according to mixing ratio for NaClO 3 reduction reaction, the reaction temperature shall be controlled at about 70 , and the pressure should be 0.01 ~ 0.02MPa. ClO 2 gas generated by the reaction shall be continuously extracted from the top of the reaction, after condensation in the inter-cooler (remove water vapor, increase the concentration of ClO 2 gas) ）it shall be absorbed by chilled water in the absorber, so as to produce ClO 2 solution with a concentration of 10g/l, and then the solution should be sent into the storage tank for the pulping workshop to use it as bleaching agent. A small amount of non-condensable gases shall be sent into the tail gas scrubber via vacuum system (steam injector) for treatment, and after that it shall be emitted.

The sodium sesquicarbonate generated in the reaction shall form muddy liquid at the bottom of the reactor, it should be withdrawn continuously from the bottom of the reactor and go into the dissolution tank via the filter, and after dissolved with warm water and neutralized into the Glauber's salt saturated liquid in lye, it should be pumped into the alkali recovery workshop. The filtrate that comes out of the filter shall be sent back into the reactor for recycling, so as to reduce the loss of chemicals.

Chlorine dioxide vacuum reactor is a steam injector with condenser, and in addition to maintain the vacuum conditions within the chlorine dioxide reactor, it is also used in the withdrawal and filtration of the solution with crystalline sodium sesquicarbonate.

All exhaust gases generated by chlorine dioxide liquid storage tank, chlorine dioxide absorber, reactor’s feeder and Glauber's salt filter shall be passed into the chlorine dioxide scrubber, and after the residual chlorine dioxide gas is absorbed by the chilled water, it should be excreted; the used washing water can be used for absorption. Even if the plant is shutdown, the tail gas scrubber should also keep running, so as to purify the tail gas that emitted from the chloride, chlorine to the liquid from the chlorine dioxide storage tank.

The technological process and pollution segment of chlorine dioxide production system of this project can be seen in Figure.

Figure 11

Sodium chlorate Chilled Chilled water Water vapor water Incondensable containing ClO 2 Dissolution Intercooler ClO 2gas gas Wate Absorber tank r gasTail Tail gas ClO reactor 2 Condensate Water ）70 ））0.01~0.02MPa ） scrubber ClO 2 solution tank

Methanol Reboiler

Sulfuric acid Circulating fluid Bottom withdrawal Exhaust

Steam ClO 2 solution to bleaching workshop G5 Sodium sesquicarbonate Medium-pressure demulsifying liquidd Water for gas washing Filtrate Vacuum filter Steam jet pump Warm water Filtered matter Water for direct Back to NaOH Dissolution tank Clean water cooling Cooler after absorber pump

Saturated Glauber's salt solution To alkali recovery workshop Cooling water To waste W3 water station

Major technical indicators concerning chlorine dioxide preparation Table 30: Major technical indicators concerning chlorine dioxide production No. Name Unit Parameters Remarks Reaction 1 / MPa 72 0.01~0.02MPa / conditions 95% Reaction 2 ClO 2 yield rate % 92% efficiency is 95% Unit consumption o 3 t 1.68 99.35% f sodium chlorate Unit 4 consumption o t 1.05 93% f sulfuric acid Unit 5 consumption o t 0.18 Industrial grade f methanol Power 6 kWh 280 / consumption Steam t 5.2 0.5MPa 7 consumption t 2.4 1.2MPa Yield of by- Based on the yield of 8 product t 1.4 1t～ClO 2 Glauber's salt

Public auxiliary and environmental protection facilities of this project This technological transformation does not only relate to the transformation of the company's public auxiliary facilities, the company’s electricity, water and steam consumptions are still relying on the existing facilities or those under construction after the technological transformation, and only the auxiliary facilities within the workshop need to be renewed as the technological transformation, including the air compression plant and recycled water system in pulping workshop; while gray water is still relying on the existing wastewater treatment, and alkali recovery and white mud are also relying on the existing disposal at the white mud dreg site, and only the pulping workshop has the newly-built collection and treatment system for the cooking gases and the waste gases generated in washing, screening and bleaching.

Material consumption and related balance before and after the Technological transformation

1. Material consumption before and after project technological transformation Before and after the implementation of this technological transformation, the company's main raw materials and power consumption can be seen in the table below.

Table 31: The comparison table of main raw materials and power consumption before and after technological transformation

Annual consumption (10 Unit consumption (t / t dried bamboo) thousand t / a)

Self-produced alkali 2 Recovered alkali 0.47 0.45 2.54 2.34 recovery (Including sodium sulfide

New alkali purchased 3 Sodium hydroxide 0.06 0.054 0.31 0.28 outside

4 Oxygen / 0.038 / 0.2 Newly-added oxygen

5 Magnesium sulfate / 0.0055 / 0.03 delignification

6 Chlorine 0.065 / 0.338 / In1t cylinder

7 Chlorine dioxide / 0.018 / 0.0936

8 Peroxide 0.065 0.015 0.338 0.078 27.5%

9 New water 78 60.4 405.6 314.1 Dadu River

258 4.96 2.05 10 Steam thousand 10.66 Self-produced (equal to 31.6t/h) (equal to 13.1t/h) t/a

Annual consumption (10 Unit consumption (t / t dried bamboo) thousand t / a)

No. Indicator name Before tec After technolog Remarks After technological transfo Before technological hnologica ical transforma rmation transformation l tion (This project) transform (This project) ation 19.14 20.70 million 11 Electricity 368kW.h 398kW h million kW h kW h Note: (1) "before technological transformation" refers to the status since the company resumed production in 2010; (2) except fresh bamboo, the other raw materials shall be calculated as 100%.

Table 32: The table of raw materials and power consumption of the new chlorine dioxide plant in this technological transformation Annual No. Name Unit consumption t/t ClO 2 Remarks consumption t/a

1 Sodium chlorate 1.68 1570.8 99.35%

2 Sulfuric acid 1.05 981.8 93%

3 Methanol 0.18 168.3 Industrial grade

4 Softened water 4.8 4488

Absorbing and Clean water + reused 5 211 197200 chilled water middle water

6 Electricity 280 kWh 261800

5.2(0.5MPa) 2.4(1.2MPa) 7 Steam 7106 equal to 0.6t/h Note: The actual production of chlorine dioxide and the use of 2.75t / d (at 100% ClO2 dollars).

2. Water balance Before execution of the technical renovation project, water balance of the post pulp production refers to Figure 12. Water balance table of the whole plant after the renovation refers to Table 33. Figure 12: Water balance of the whole plant after the project Unit: t/d

9240 214 Vaporized and to production Fresh 2600 428. Papermaking Condensed water To boiler water 489.5 5 workshop

6194 White water from White water recycling system papermaking machine Bamboo chips contained water 3747(water in pulp) 764 Surplus white 275 (water in ClO 2 liquid) 5430(resue white water) water

1912(reuse relaimed water) 261.5 Vaporizing and to residue Pulping 6110 Mid-stage workshop waste water 7945 (to be renovated) 2065 1835 Preparation waste water 612 176 Water in white 1782(water in black Reuse slight Clean water after liquid contaminated heat exchange liquid) cool water 612 2065 1552 1376 Contaminated cool water 76 soda recycling Water contained in white sludge etc 10(water in reuse Glauber's salt ) workshop 490 Water loss by combustion and 428.5 vaporaizatopm 560 (condensed water) condensed water from papermaking workshop 19 19 1477.5 Drain water from boiler Soda burner waste pot + coal boiler 103. 5 Boiler use and pipeline loss steam 611.5(desalted water) 690 65 Resin regeneration 65 Desalted station ）625 ） water 290(resue water) Cooling water from steam ejector 13.5(desalted water) 14.5 157 157 Cooling water of steam pump Reaction water: 0.5 ClO 2 workshop 290 166.5 (newly added) Vaporizing water 27 10 Water in liquid ClO 2 (10g/L) Water in saturated Glauber’s salt liquid 5 80 80 Workers living Living waste water 1912 For bamboo chips washing 48 Workshop 48 48 Weighbridge washing water 290 cleansing Cooling water for 10454 ClO 2 workshop 2250 Waste water Reuse water 4 treatment station Water in sludge

8200 Discharge waste water To Daduhe River

Figure13: Water balance of the whole plant before the project Unit: t/d

9162 Raw material contained water 306 Ejected water & steam Fresh water 379.2 612 Steam workshop

306 2295 67 Reuse white water

1147 2372

876.7 (pulp contained water)

Volatilized water 15.3

Mid-stage ） waste water Water in 1377 (pulp contained water) black liquid vaporized water 457.1 White water recycle sys Paper making Paper machine ～ white water workshop Surplus white water

Water in white liquid Vaporized water 445.6 Concentrated contaminated cool water Water in white sludge

Drain water Waste heat boiler from boiler of soda burner Drain water from resin regeneration

Drain water from boiler Weighbridge washing water Living waste ～ water 11017

Waste water station

Discharged to Daduhe River

Table 33: Water balance of the whole plant after the project Inward t/d Outward t/d 9240 =60.4t/t Discharged water from waste water Fresh water Discharge: 8200 paper station: 8200 =53.6t/t paper Bamboo Vaporized water from pulping chips 275 workshop and bamboo residue 216.5 contained contained water: water Vaporized water from ClO 2 166.5 Generated workshop: To atomosphere: water from 0.5 Waporized water from papermaking 1235.5 ClO 2 reaction workshop and paper contained 214 water: Combustion and vaporized water of / / 490 caustic soda recycling workshop: Loss of boiler and caustic soda / / 103.5 burner waste pot vapor: Water contained in discharged white / / sludge from caustic soda recycling 76 Loss by solid workshop: waste: 80 Water contained in sludge from wast / / 4 water station: Total 9515.5 Total 9515.5

It can be seen from Table 32 and Figure 6.1 that the waste water discharged to Daduhe River is 8,200 t/d after the execution of the project, approximate 25% deduction of the previous discharge before the project (11,017 t/d), and consumption of fresh water is decreased by approximate 23%.

3. Pulp water balance Refer to Figures 14-15 pulp water balance before and after execution of the technical renovation project.

Figure 14: Pulp water balance after the project (as 1t bleached bamboo pulp)

Reuse water after settlement treatment

4t fresh bamboo chips 0.1 12.5 (water content 45%) Volatile loss 12.5 To waste Drain washing 12 24.5 water station 25t water Wet preparation Washing 0.2 Wash bamboo residue Reuse water: 12.5 bamboo (45% water content) 4.2 (bamboo chips water content 50%) steam Steam 0.75t 0.9 Volatile water vapor 2.05t Clean water through heat exchange of soda recycle: 1 13.15 13.15t black liquid (water Gap displacement (11~12m 3,8~9Be’) content 11.65t) Recycle soda 4.45 stewing (water content 4t) 13.15 Soda reccycle (concentrated black liquid 3t) 9.5t (steamed pulp C=12%) 10.15 Clean water through heat 13.15t 13.15t black liquid Contaminat exchange of soda recycle: 3 Washing extraction 9 To waste e cool water 11.65 water station 1. 15 To oxygen Steam 0.6t 11t (washing brownstock C=10%) delignification section

O2 etc: 0.0 6 11.65 Oxygen Drained washing Slight contaminated cool water: 1.15 delignification & Clean water through heat close screening 0.06 exchange of soda recycle: 9.5 Volatile water & vapor

10.6t (unbleached pulp C=10%) Steam 0.7t 0.66 Volatile loss Waste To waste Clean water 2 t 40 40 bleaching water water station CEF bleaching 10g/L ClO 2 liquid: 1.8 Washing water from EOP & D 0 sections

(D 0-EOP-D1) H O etc: 0.06 2 2 Resue paper machine white water: 35.5

10t (accepted pulp C=10%) Clean water 15.5 Bleaching bamboo pulp (1t) 31t 25.5t 1.4 Drying loss 35.5t Steam 3.2t (indirect heating) 40.5t paper machine White water Paper making white water recycle system Clean water 17t workshop 2.8t condensed water 5t

To waste water 1t pulp paper station ～ Notes: 1-the workshop with means it is not included in the renovation project;

2-unit of numbers without unit indication is t.

Figure 15: Pulp water balance before the project (as 1t bleached bamboo pulp)

Bamboo chips 2.1t (absolute dry) Water in raw material 4.0t

(incl raw material contained water, white liquid, black liquid, water in liquid caustic soda) steam Steam 2.5t 8.2t stewing NaOH (percentage) 0.33t Ejecting water & vapor 0.47t Na 2S (percentage) 0.14t auxiliary 1kg Hot white water from heat exchange of 8.3t seamed pulp C=12% vaporization system in soda recycle section

Thin black liquid in 3 Section I 9m black liquid 3.0t Washing & Thin black liquid in (9Be’) extraction Section II Thin black liquid in Section III Soda recycle & 10t black liquid Thin black liquid in vaporization Section IV

10t washing brownstock C=10% 20t 5t 7t contaminated cool water

5t Clean Stress 25t washing water 5t screening waste water 68t Volatile water vapor 0.1t 20t screened pulp C=5% 17t Bleaching waste water Clean water 18t bleaching Waste water Steam 2.5t from soda treatment 32.5t bleaching Cl 2 0.065t Waste water from secondary waste water 30% liquid soda 0.035t bleaching lime 0.055t

27.5% H 2O2 0.065t H2O2 bleaching waste

Reused H 2O2 bleaching drain 15t 45t white water to vaporization 10t accepted pulp C=10% Clean water 10t station as cooling water

45t Steam 3.2t Pulping (paper) 51.5t paper machine white water White water recycle sys

Clean water35t 3.2t condensed water 6.5t

Dry vapor 2.5t 6.5t remaining white water

1t pulp paper

4. Bamboo balance Analysis of bamboo balance of pulping workshop before and after the project refers to Table 29.

Figure 16: Balance of raw bamboo material in pulping workshop after the project (as absolute dry) Unit: t/a

Bamboo chips (absolute dry) 114400 ～～～

5720 ～ Preparation residue preparation (dry residue) 108680 ～～～

stewing

Oxygen 5783 to～black～liquid Bamboo joint delignification & close screening 1060～ residue to～pulp～residue

497854978549785～(unbleached～pulp)49785 ～(unbleached～pulp)～(unbleached～pulp)～～～～

29852985～～～～ bleaching to～bleaching～waste～water 4680046800～～～～

Bleached bamboo pulp 46800 (as air-dry pulp 52000)

Figure 17: Balance of raw bamboo material in pulping workshop before the project (as absolute dry) Unit: t/a

Bamboo chips (absolute dry) 109200 ～～～

preparation Fine bamboo residue 3276 105924105924～～～～ stewing 105924105924～～～～ 5296252962～～～～ Bamboo joint Remove joint & washing Into black liquid 52962 residue 52962 ( brownstock ) 1588.9 ～～～ Pulp residue Close screening 529.6529.6～～～～ Into screening waste water 50843.5 (screened pulp) 4043.5 ～～～ bleaching Into bleaching waste water

Bleaching bamboo pulp 46800 (as air-dry pulp 52000)

5. Caustic soda balance (refer to Figure 18) Caustic soda consumption is the same after the project. Glauber's salt is

produced by by-product from production of saturated ClO 2 liquid that will not be purchased after the project. The deoxidization rate of Glauber's salt is still 90%.

The deoxidization equation of Glauber's salt is: Na2SO 4+2C=Na 2S+2CO 2.

Figure 18: Caustic soda balance after the project (as Na 2O) unit: t/a

Supplement Consumed carbon involved caustic soda for in deoxidized reaction 380 Smoke (soda dust +CO 2) Into contaminated Glauber’s salt stewing Into brownstock condensed water 2250 1400 Decompose loss, into white sludge 1222 237 961.8 733.2 520 24440 23706. 23469. 23738 Into white sludge stewing washing vaporize Concentrated combustion causticize Stewing liquid Thin black liquid NaCO 8 black8 liquid 3 23218 Recycled soda 23218

6. Sulfur balance (refer to Figure 19) Sulphur alkali consumption is the same as the previous after the project.

Glauber's salt is produced by by-product from production of saturated ClO 2 liquid that will not be purchased after the project.

Figure 19: Sulfur balance after the project (as S) unit: t/a

Into contaminated Glauber’salt smoke ）SO 2） Ejected loss Into brownstock cool water 507 Into white sludge 1.6 142 135 215 13.4 2695 2560 2345 2850.4 stewing washing vaporizin combusti causticizi 2837 2837 Recycled sulfur contained caustic soda 2387

7. Steam balance Steam balance before and after the project refers to Figure 20-21.

Figure 20: Steam balance after the project unit: t/h 4.3 Boiler consumed & pipeline loss 13.1 Pulping workshop 35 boiler 30.6 Direct heating 34.1 20.4 Paper making workshop indirect heating 0.6 3.5 ClO 2 workshop

31 27.5 Soda burner Gas turbine Steam for soda recycle workshop

Figure 21: Steam balance of current plant unit: t/h

5.0 Boiler consumed 15.8 Stewing for pulping Direct heating Boiler (total 49t/h) 44 15.8 Washing, screening and 52 indirect heating bleaching for pulping

20.4 8 Paper making workshop indirect heating

15 Vaporization & concentration indirect heating Soda burner 25 17

2 causticizing indirect heating

The steam consumption will be greatly decreased at pulping production after the project, from 31.6t/h to 13.1t/h. Steam consumption for newly added ClO 2 production is only 0.6t/h. So the total steam consumption is decreased from 79.5t/h before the project to 61.6t/h after the project. In addition to the steam produced by waste heat boiler of the caustic soda burner, the steam capacity of the coal boiler will be 35t/h. This means the currently constructed coal boiler will be operated at 70% of its full designed capacity (50t/h) that is under allowed operating scope and may extend operating lifetime of the boiler.

2.4 Consistancy to industrial and environmental policy and planning

Consistancy to national industrial and environmental policy After the technical renovation project, the pulp production of the whole plant will be kept the same as 52,000t/a. The main renovation is to replace CEHP 4-stage less chorine bleaching process with ECF ClO2 bleaching process; to replace steam ball with vertical boiler; and to add new stage of oxidized delignification. The project belongs to the 3 rd article of light industry: elemental chlorine free (ECF) and total chlorine free (TCF) pulp bleaching process development and application in the encouragement categories of “the Catalogue Guidance of Industrial Structure Regulation (2011)” published by the National Development and Reform Commission, and conforms with requirements of “the Industrial Development Policy for Paper Mill (bulletin No. 71 2007, the National Development and Reform Commission).

After the project the waste water discharged will stablly and for long-term meet the threshold of the Table 2 of the standard GB3544-2008 that was come into force since July 1 st 2011. At the same time, generation and drainage of persistent organic pollutants (POPs) such as AOX and dioxin etc contained in the waste water and mephitic pollutants are effectively deducted. As a result it promotes the enterprise completely as an up-to-date non-wood pulp paper mill in the domestic industry. The project shows both social and environmental benefits obviously. Therefore the project conforms to the state industrial and environmental policy.

Consistancy with local planning The project will be carried out within the boundary of the current plant. No land will be claimed. The project site is located in Fulu Township, Shawan District, Leshan City, which belongs to individual industrial land (refer to attachment the “state land use license”) and is outside of the urban and town planning built-up areas of Shawan District and Fulu township. The project belongs to energy saving and emission reduction technological renovation. After the renovation environmental impacts by the plant will be decreased. It therefore conforms to local planning.

2.5 Waste generation, emission and control measures after the

project

Waste water Pulping and paper making industry produces main three waste water, i.e. black steam liquid, mid-stage waste water and white water from paper making. This project disposes the waste water separately in accordance with the principles of “separate flow of clean and waste”, “separate disposal of different wastes” and “ladder utilization”.

1. Waste water category of the renovation project and disposal measurement Black liquid: black steam liquid is the main pollution of paper industry that accounts above 90% of the total waste water generated in the pulping and paper making industry. Hence to extract black liquid and implement caustic soda recycle is the most effective waste water control measurement in the pulping and paper making industry.

Caustic soda recycle is the most feasible approach to dispose black liquid that can remove not only over 90% of waste water capacity but recycle caustic soda and heat, which creates a certain economic benefit. After this renovation project implementation, the black liquid extract rate will increase from 95% to 97%. The discharge points of the black liquid are also different (after reuse in steam stage, it will be discharged to soda recycle section).

Mid-stage waste water: waste water from mid-stage of pulping is mainly from bleaching section. After the renovation project the up-to-date medium concentration ECF (elemental chlorine free) technology is used to replace chlorine bleaching process. So the waste water quantity drained from mid-stage is decreased. The waste water from mid-stage is also sent to waste water treatment station and is discharged after treatment and meet standard. Portion of the treated waste water is returned to the process for reuse.

Preparation waste water: This project adopts wet preparation method instead of original dry preparation. Therefore new waste water generated in this section. Waste water from bamboo washing is sent to preparation waste water treatment system for settlement and cleansing. Approximate 50% of the treated water is directly sent back for bamboo washing. Another 50% is sent to waste water treatment station. The water quality for washing bamboo chips is not high so supplementary water for bamboo washing section can be supplied with treated reuse water from waste water treatment station.

Waste water from ClO 2 workshop: process water from ClO 2 production is completely sent to ClO 2 liquid and by-product – saturated Glauber’s salt liquid. No discharge. Waste water from ClO 2 workshop is cooling water from vacuum system (steam ejector pump) that contains very low pollutants and is sent to waste water treatment station for disposal. In addition, cooling water can be supplied with reuse water from waste water treatment station.

Waste gas washing water from pulping section: This project adds a new waste gas treatment facility in pulping section. Washing water is reuse water from waste water treatment station. The washing water will be sent back to the waste water treatment station and resue again.

Waste water generated from the project and treatment refers to Table 34-36. For those outside of renovation scope are basically kept unchanged.

Table 34: Waste water generated and treatment within the project Quantity Main pollutants and Workshop Source Producing Disposal and drainage (m 3/d) concentration Sent to caustic soda recycle. No Black steam liquid 2011 COD ）80000mg/l Continuously Cr discharge.

COD Cr ）1000mg/l Bleaching waste water 6110 SS ）650mg/l Continuously AOX ）12mg/l Sent to waste water treatment station. Pulping Preparation waste water (drained Portion of treated water will be resued. COD ）150mg/l partly after settlement and 1835 Cr Continuously Other discharged to Daduhe River after SS ）500 mg/l cleansing) meet the criteria. Outlet water from waste gas 16 Absorbed sulfur gas Interrupted washing tower COD ）100mg/l Cooling water from steam ejector Cr Sent to waste water treatment station for ClO 157 Trace ClO and Continuously 2 pump system 2 disposal methanol To waste water treatment station: Total 10129 / / 8102m 3/d

Table 35: Waste water generated and treatment from pulping workshop before the project Quantity Main pollutants and Workshop Source Producing Disposal and drainage (m 3/d) concentration Black steam Sent to caustic soda recycle. No 1377 COD ）80000mg/l Continuously liquid Cr discharge. Sent to waste water treatment Pulping station. Portion of treated water is Mid-stage COD ）1000~1500mg/l 8797.5 Cr Continuously reused. Other discharged to waste water SS ）650mg/l Daduhe River after meet the criteria. To waste water treatment station: Total 10174.5 / / 8797.5m 3/d

Table 36: Waste water generated from other workshops and treatment out of the project Quantity Main pollutants and Workshop Source Producing Disposal and drainage (m 3/d) concentration Sent to white water recycling system for disposal. Portion of White water this water resued for washing, Paper COD ）200mg/l from paper 6194 Cr Continuously screening and bleaching sections. making SS ）300mg/l machine The remaining approximate 764t/d sent to waste water treatment station. Slight contaminated cool water from vapor concentration directly reuse for washing, screening and bleaching sections. Heavy contaminated cool water goes through Caustic Vaporized stripping treatment and becomes

soda contaminated 1552 COD Cr ）800mg/l Continuously slight contaminated cool water recycle cool water that is resued and discharged to waste water treatment station. Quantity of reuse slight contaminated cool water: 176m 3/d; quantity of water sent to waste water treatment station: 1376m 3/d Drainage from Desalted membrane water 65 Clear drain Interrupted filter and resin station regeneration Drainage from Boiler 19 Clear drain Continuously Sent to waste water treatment boiler station Washing

water of 48 COD Cr ）350mg/l Interrupted Plant weighbridge Living waste 80 COD ）350mg/l Continuously water Cr To waste water treatment station: Total 7958 / / 2352m 3/d Total of the whole plant To waste water treatment station: 18088 / / after the project 10455m 3/d Note: contaminated cool water from caustic soda recycle is increased due to black liquid increase after the project.

2. Treatment process applied in wastewater station The reconstruction of advanced treatment in wastewater station of Jinfu Company is under way, which shall be completed soon. The treatment process applied in the Station is adjusted to 3 levels, i.e. “ABR + contact oxidation + advanced treatment by superficial layer air-floating technology”. See figure 22 for treatment process applied by the wastewater station and see table 2-19 for water inlet and outlet.

Table 37: Treatment in wastewater station of Jinfu Company after project implementation

Ammonia Chroma AOX Water amount COD BOD SS Status Cr 5 nitrogen (dilution mg/L m3/d mg/L mg/L mg/L mg/L factor ) Control index for 11017 ≤1500 ≤500 / / / 12 water inlet 8200 Control index for 2250 is to ≤90 ≤20 ≤30 ≤8 ≤50 ≤12 water outlet be reused Discharge threshold as listed in Table 2 60t/t product 90 20 50 8 50 12 of GB3544-2008

Figure 22: Process applied in wastewater station

Regulating Primary Dewatering Crude residues Wastewater Reservoir sedimentation Crude tank residue machine Delivery

Filtrate ABR tank

Aeration Contact Filtrate oxidation tank Secondary Sludge oxidation tank Sludge dewatering Concentration tank machine

PAM ）PA Collecting tank Mud cake delivery

Superficial air floating tank Sludg Sludge Sludge dewatering machine reservoir

Reused water Reused water Collecting tank Chemical oxidation tank (standby) Online monitoring Tail water Discharge into Dadu River After technical reconstruction, concentration of discharged pollutants and water discharge per ton of product in discharged wastewater of the whole factory is to meet requirements on concentration threshold for pump and papermaking enterprises as stated in table 2 of Discharge Standard of Water Pollutants for Paper Industry (GB3544 - 2008) . Reused water being treated in wastewater station is about 2250t/d (account for 22% of water being treated) in total, about 1912 t/d (account for 85% of reused water) of it is used for washing bamboo chips, about 48 t/d (account for 2% of reused water) used for cleaning workshops, and the remaining 290t/d (account for 13% of reused water) used as direct cooling water of chlorine dioxide workshop and gas washing water.

It shall be noted that it has not achieved a high pollutants removal rate in existing biochemical treatment system of the wastewater station because of anaerobic unit deficiency. But it adds the input of chemical oxidizing agent in advanced treatment process, which can assure the safe discharge of wastewater. While there are stable hydrogen peroxide sources in Jinfu Company, it can ensure the chemical dose needed for advanced treatment. However, it requires enterprise improving existing anaerobic unit in wastewater station, increasing pollutants removal rate of the biochemical treatment system and reducing treatment load of advanced treatment unit in wastewater station in this assessment.

3. Analysis on change of production, treatment and discharge of pulping wastewater of the whole factory in the technical reconstruction • The reconstruction aims at improving pulping process, which reduces water consumption of process, thus reduces wastewater and pollutants generation from source, reduces pollutants treatment load in wastewater station, which assures discharged wastewater meet concentration threshold requirement as stated in table 2 of GB3544-2008 and part of water can also be reused in pulping process after treatment. • It adds a process using oxygen delignification in pulping after reconstruction, which reduces lignin amount entering the bleaching process effectively and pollutants loading entering middle process wastewater finally. • The pulping technology is changed to use medium concentration CEF bleaching technology after reconstruction, which reduces bleaching wastewater discharge, reduces fiber losses, and thus lowers pollutants concentration in wastewater, controls the generation of AOX and pollutants like dioxin and reduced the production of AOX from 2.5 kg/t to 0.8 kg/t of pulp.

4. Prevention measures on groundwater pollution The vadose zone where the project site locates has a high pollution prevention capability. The site belongs to basaltic geologic strata of Mountain Emei (P 2β) with less ground water. The ground water is basalt pore and fracture water, with features of less quantity and slow mobility. The shallowest underground burial depth is 10 m. The ground water flows toward to the west and discharge into Dadu River.

The project is to be constructed within existing factory boundary and is to strengthen and rebuild existing seepage proofing facilities during the construction process. It is to apply seepage proofing measures on all pools, pulp towers, wastewater stations, water channels and pipelines that may leak, and is to consolidate the seepage proofing of swerve, bear and insert parts, joints of pipelines and pools. Meanwhile, it records concealed project. It can prevent ground water pollution effectively. It is feasible to prevent ground water pollution accident through applying above seepage prevention measures.

Waste gas Since the technical reconstruction of this project does not include the main waste gas, i.e. boiler flue gas and alkali furnace burning gas, produced and discharged by pulp and papermaking enterprises, the waste gas produced and discharged in this project are cooking odor, washing, screening and bleaching waste gas, tail gas generated by chlorine dioxide preparation, and flue gas containing sulfur compound unorganized discharged during pulping process.

See following table for the generation and emission of organized waste gas in the project.

Table 38: Waste gas generation and discharge of various workshops within the range of technical reconstruction Source of waste gas Workshop Main pollutants Main management measures Pollutant discharge and name Small amount of Amount of waste gas:500m 3/h Dust produced by dust produced when TSP ）120mg/m 3 prepared materials Discharge after dust removal by washing. screening screening bamboo Safe discharge through an chips exhaust funnel of 15m high. Small amount of Install gas trap cover to collect waste gas organic and discharged from system, and send to washing Amount of the waste gas: inorganic tower for washing and clarifying, and then 1500m3/h Cooking odor compound discharge through 15 m of exhaust pipe after Pulping Safe discharge through an containing sulfur cooling down. workshop exhaust funnel of 30m high. produced during Waste gas collection efficiency 98% cooking process Washing and clarifying efficiency ≥90% Install gas trap cover to collect waste gas discharged from system, and send to washing Waste gas produced Small amount of Amount of the waste gas: tower for washing and clarifying, and then by washing, odor produced in discharge through 15 m of exhaust pipe after 2000m3/h screening and bleaching and cooling down. Safe discharge through an bleaching process screening process. Waste gas collection efficiency 90% exhaust funnel of 30m high. Washing and clarifying efficiency ≥90% Amount of flue gas: The tail gas produced in absorbing tower shall Amount of the flue gas: Chlorine 500m3/h Tail gas produced in be discharged an exhaust funnel of 30m high 2000m3/h dioxide The main pollutants absorption tower after being absorbed by water in cooling tank Safe discharge through an workshop are few ClO2 and of steam ejection pump. exhaust funnel of 30m high. methanol. Note: wasted gases produced in pulping workshop are discharged freely before reconstruction.

Table 39: Waste gas generation and discharge of other workshops outside the range of technical reconstruction Name Source of of the waste gas Fuel Main management measures Pollutant discharge unit and name Coal Use limestone to remove Heat value sulfur inside furnace, four 3500kcal/kg, electric-field dust removal Discharge by a an 1 50t/h coal Sulfur content technology to remove dust Amount of the flue exhaust funnel of boiler of 0.35% and low NOx combustion gas: 77,600 m 3/h 80m high. Boiler 3 circulating technology. SO 2：335.3 mg/m fluid bed Dust removal efficiency Dust: 82.8mg/m 3 Amount of ≥99.8% 、 pollutants being Desulfuration efficiency discharged:

≥60% SO 2：259.1t/a 225tds/d Apply four electric-field dust Amount of the flue Dust: 94.8t/a 3 Alkali flue gas of Burning material: removal technology gas: 54,000 m /h NO x：644t/a furnace combustion 55% black liquor Dust removal efficiency Fume dust: 96 mg/m 3 3 furnace ≥99.8% SO 2：106 mg/m Standard as stipulated in time period II in Category II of Emission Standard of Air SO ：900 mg/m 3; fume dust: 200mg/m 3 Pollutants for Coal-Burning Oil-Burning 2 Gas-Fired Boiler Secondary standard as stipulated in 3 3 Emission Standard of Air Pollutants for SO 2：850mg/m ; fume dust: 200mg/m Industrial Kiln And Furnace It shall be noted that the steam consumption of the whole factory is to be reduced

by 17.9 t/h after project implementation. Meanwhile, it can reduce SO 2 and other pollutions emission obviously.

Generation and discharge of unorganized waste gas and set for sanitary protection distance: The newly built waste gas collection and treatment systems in pulping workshop are both used for treating odor produced during pulping process. While these gas are discharged freely before technical reconstruction. Therefore, waste gas discharge of the whole factory is to be reduced greatly after project implementation, which can reduce more than 90% of odor emission and alleviate impact on air environment within short range. However, there is no dimension for odor concentration in related environmental protection standard, and it is hard to forecast and analyze quantitatively. Therefore, it still uses the sanitation protection distance as approved by Sichuan Environmental Protection Office (Chuanhuanshenpi [2010] No. 479) in this assessment: i.e. remain “a sanitation protection distance of 100m centering around cooking workshop, black liquor concentration unit, chemical workshop”; in terms of wastewater station, remain “a sanitation protection distance of 100m centering around aeration pool, sludge concentration and pressing workshops of the wastewater station”. There is no resident within the range and it is not necessary to relocate.

Solid waste The generation and emission of other solid wastes (white mud, lime residues, ash residues, damaged paper and sludge in wastewater station) remains the same as before after project implementation except that bamboo residues produced during preparing materials increase slightly, screening and pulping residues decreases slightly. The disposal for them also remains the same. See the following table for details.

Table 40: Generation and treatment of solid wastes in the project Amount of Generation Amount being Amount of Name Unit comprehensive Treament method process generated disposal utilization Bamboo residues Materials generated preparation t/a Burning when process preparing materials 5720 5720 0 Cooking Cooking t/a Cooking for reuse residues process 1600 1600 0 Washing, Screening and screening and pulping t/a Mixed burning bleaching residues process 1060 1060 0 Total / t/a 8380 8380 0 / Remark Comprehensive utilization rate of waste residues concerned in this project is 100%.

Disposal for other solid wastes of the whole factory: ash residues are sent to cement plant for using as raw material, thus achieve comprehensive utilization; white mud and lime residues are sent to white mud slag field for land-filling; damaged paper produced in papermaking workshop is returned to original workshop for pulping.

Noise Equipment noise source and noise intensity does not change much before and after reconstruction. Main noise sources include gas discharge when cooking, air compressor, vacuum pump and water pump. Noise intensity of main equipment of project is listed in the following table.

Table 41: Statistics of noise intensity of main equipment producing noises in the project unit : dB(A) Workshop or process Noise source Noise level

Circulating pump, black liquor and pulp 85-90 pump Pulping workshop Knot removing machine, pressure screen 86

Air compressor 90~100

Chlorine dioxide workshop Steam cooking pump, water pump 85~95

Comparison between three wastes discharge and summary of pollutants discharge before and after project implementation See the following table 42-43 for the generation and discharge of three wastes in pumping workshop, chemical workshop and the whole factory before and after project implementation.

Table 42: Summary and comparison on three wastes discharge of pulping and chemical workshop before and after project implementation Production intensity Production intensity after Type before Treament method reconstruction reconstruction Amount of waste Amount of waste Middle process wastewater water:6110t/d water:8797.5t/d

COD Cr 1000mg/L COD Cr 1100mg/L After reconstruction, 8102t/d W Wastewater produced when of wastewater achieves safe ast preparing materials Amount of waste discharge after treatment; Do not produce e (discharge wastewater after water:1835t/d Before reconstruction, any more. wa sedimentation, clarification COD Cr 150mg/L 8797.5t/d of wastewater ter and reusing) achieves safe discharge after Cooling water of steam Amount of waste treatment. Do not produce cooking pump in ClO water:157t/d 2 any more. workshop COD Cr 100mg/L Amount of waste Flying dust produced in Discharge after removing gas:500m 3/h prepared material screening dust by water washing. TSP 1200mg/m 3 Amount of waste Discharged after cooling, Cooking waste gas gas:1500m 3/h washing and purification in Unorganized W Odor containing steam. water scrubber. emission ast Amount of waste e gas:2000m 3/h Discharged after cooling, Washing, screening and gas Odor containing steam washing and purification in bleaching waste gas produced when bleaching, water scrubber. screening. Tail gas produced in Amount of waste gas: Do not produce Discharge after absorption absorption tower in ClO 3 2 500m /h any more. through vacuum system. workshop Sol Bamboo residues when id 5720t/a 3276t/a Mixed burning preparing materials wa ste

Knot removing residues 1600t/a 1600t/a Returned for cooking Screening and pulping 1060t/a 1590t/a Mixed burning residues Sludge in wastewater 2000t/a 2000t/a Delivery for landfill station

Table 43: Summary of three wastes discharge before and after project implementation Production intensity Discharge intensity Type after reconstruction before after reconstruction before reconstruction reconstruction Amount of waste Amount of waste Middle process water:6110t/d water:8797.5t/d wastewater COD Cr 1000mg/L COD Cr :1100mg/L Wastewater produced when preparing materials Amount of waste (discharge wastewater water:1835t/d / All of the water is sent All of the water is sent to after sedimentation, COD Cr 150mg/L to wastewater station clarification and reusing) wastewater station for for treatment. Part of it Cooling water of steam Amount of waste treatment. Part of it is is reused, and the reused (about 22%), and cooking pump in ClO 2 water:157t/d / remaining is safely the remaining is safely workshop COD Cr 100mg/L discharged into Dadu Wastew Amount of waste discharged into Dadu Cooling wastewater Amount of waste River. water:1071t/d River. ater water after alkali water:1376t/d Amount of discharged 3 COD Cr 1000mg/ Amount of discharged recovery COD 800mg/L 3 waste water:8250m /d Cr L waste water:8200m /d COD Cr :90mg/L 252.5t/ Amount of waste Amount of waste COD Cr : 90mg/L 250.9/a a Discharged white water water:764t/d water:994.5t/d BOD 5: 20mg/L 55.8t/a BOD 5:20mg/L 56.1t/a COD Cr 150mg/L COD Cr 150mg/L NH 3-N: 8mg/L 22.3t/a Sewage discharged Amount of Amount of NH 3-N:8mg/L 22.5t/a from boiler room and discharged discharged desalination station water:84t/d water:29t/d Amount of waste Amount of waste Sanitary sewage, floor water:128t/d water:125t/d washing water. COD Cr 350mg/L COD Cr 350mg/L Amount of the fume: Discharge by an exhaust remain the same Waste 7.76 m3/h funnel of 80m high after Coal-fired boiler before and after SO 335.3mg/m removing dust by four- gas 2 reconstruction 3 field technology remain the same Fume: 41.4g/m 3 separately. before and after Amount of the Discharged pollutants: reconstruction fume: remain the same SO 259.1t/a Fume from alkali 2 5.4 m3/h before and after Fume: 94.8t/a furnace 3 Fume: 47.5g/m reconstruction NO x644t/a 3 SO 2106mg/m Flying dust produced Amount of waste Amount of waste 5t/a(unorganized 5t/a(unorganized during prepared gas:500m 3/h gas:500m 3/h emission) material screening TSP 1200mg/m 3 TSP 120mg/m 30.5t/a emission) Amount of waste Amount of waste gas:1500m 3/h gas:1500m 3/h unorganized Unorganized emission Cooking odor safe discharge through Odor containing emission exhaust funnel of 30m before reconstruction steam high

Amount of waste Amount of waste gas:2000m 3/h Washing, screening and gas:2000m 3/h unorganized Unorganized emission safe discharge through bleaching waste gas Odor containing emission exhaust funnel of 30m before reconstruction steam high Amount of waste gas: Amount of waste Tail gas produced in 500m 3/h gas: 500m 3/h absorption tower in ClO 2 / safe discharge through / Small amount of workshop exhaust funnel of 30m ClO and methanol 2 high

remain the same White mud and lime 54,600t/a before and after Landfill in slag field. residue reconstruction

remain the same Sold to cement factory Ash residue produced 47,200 t/a before and after for comprehensive by boiler room reconstruction utilization.

Bamboo residues when 5720t/a 3276t/a Mixed burning preparing materials

Lime residues 2600t/a remain the same Landfill in slag field. before and after remain the same Sludge in wastewater The treatment method 2000t/a before and after Delivery for landfill station remains the same reconstruction before and after Solid reconstruction. Both remain the same waste Knot residues produced can achieve 1600t/a before and after Returned for cooking when cooking comprehensive reconstruction utilization and appropriate disposal. Screening residues 1060t/a 1590t/a Mixed burning

remain the same Reused in original Damaged paper 500t/a before and after workshop. reconstruction

remain the same Waste packing materials 200t/a before and after Retrieved by supplier. reconstruction

remain the same Household waste 50t/a before and after Delivery for landfill reconstruction

“Three accounts” analysis before and after project implementation Since it begins reform in 2010, it has achieved safe discharge of wastewater, boiler flue gas, alkali furnace flue gas; and noise at boundary has met related standard, white mud and other solid wastes have also been disposed appropriately in Jinfu Company.

Main pollutants discharge of the whole factory is as listed in the following table after project completion. According to comparative analysis, pollutants discharged by

88 enterprise have decreased after project (and other technical reconstruction before) implementation and it has achieved positive environmental benefit.

Table 44: “Three Accounts” Analysis on Pollutants Discharge of Jinfu Company Amount of pollutant discharge of the Amount of pollutant Change on pollutant Pollutants discharge whole factory after discharge of the whole discharge of the whole Time period status of enterprise the implementation factory after factory after project of project on the reconstruction implementation going Amount of 8250m 3/d 8200m 3/d discharged -50m 3/d 2,805,000m3/a 278.8 m3/a wastewater Do not include project

COD Cr 252.5t/a on the going 250.9t/a -1.6t/a

NH 3-N 22.5t/a 22.3t/a -0.2t/a AOX 105t/a 33.5t/a -71.5t/a SO 316.2t/a 259.1t/a / 2 Do not include in the Fume 126.6t/a 94.8t/a / project NOx - 644t/a / Flying dust 5t/a / 0.5t/a -4.5t/a

3 Overview of nature and society in the project area

3.1 Overview of natural environment

Geographical location The whole Shawan District of Leshan City lies on the southwest edge of the Sichuan Basin and in the lower reach of the Dadu River. Its geographic coordinates are between 103°25'13" to 103°44'10" E. longitude and 29°11'18"to 29°31'30" N. latitude. It is 6 km long from south to north and 1.5 km wide from east to west, covering an area of 610.89 square kilometers. It is bordered by the Shizhong District of Leshan City to the north, Muchuan County and Ebian County to the south, Wutongqiao District and Jianwei Country to the east, as well as Emeishan City to the west. It is 180 km away from Chengdu City, 8 km away from Leshan City, and 31 km away from Emeishan City. District People's Government is located in Shawan Town.

This project is located in Fulu Town, which lies at the southeast of Shawan District and on the right bank of Dadu River. It is about 20km away from Shawan Town to the southeast.

The geographical location and location relations of this project can be seen in Figure 1.

3.1.2 Geology According to the seismic zoning, Shawan District is located in western Yangtze District(Scale I) and Ebian sub-zone (Scale H) of Kunming Zhaojue zone (Scale H). Within this region, the Sinian System to the Cenozoic Erathem, and the Quaternary System are distributed, besides the lack of the Middle-Upper Ordovician System, the Silurian System, the Devonian System, the Carboniferous System, the Palaeocene System in the strata, the other systems are distributed at different levels, with a thickness of 5925.35 meters in total. The strata includes four systems and several groups, and there is the Sinian System in the Upper Proterozoic group; there are the Cambrian system, Ordovician system, Permian system in the Paleozoic group; there are the Triassic system, the Jurassic system and the Cretaceous system in the Mesozoic group; there are the Neogene System and the Quaternary System in the Cenozoic group. The Upper Sinian System to the Middle Triassic System are mainly marine deposition; the Upper Triassic System is transitional facies; the Jurassic system to the Upper Cretaceous system is fluvial-lacustrine; the Quaternary System is alluvial. Generally, geological structure is bordered by Jianong Fengdumiao ~ Fulu line, and to the southwest, there is Emeishan block with strong activity, and the dip

90 angles of the rocks are large and between 20 to 30 degrees, with ancient strata and complex structure; to the northeast, there is the bend in Sichuan, and the dip angles of rocks are small and between 3 to 6 degrees, with newer strata and simple structure. There are mainly three anticlines, three synclines, three faults and a " ）"-shaped structure, which can be divided into four structural systems, namely neocathaysian structure, north-south structure, “ ）”-shaped structure and “ ）”-shaped structure. Respectively, they are er’eshan anticline, Fandian anticline, Si’eshan anticline, Gongzui syncline, Jiuli syncline, Mojiang syncline, neocathaysian (Shiniu) syncline, north-south fault, north-east fault, and north-west fault.

The seismic-resistance intensity at the location of the site is Scale degrees.

Topography Because of neotectonic movement, northeast hills, flat dam, and the southwestern mountain land surrounding the Basin have formed. Northeast hills, flat dam belong to relative subsidence area, and the landscape features largely denudation and accumulation; Western mountain land surrounding the Basin belongs to the strongly rising area caused by neotectonic movement, and the landscape features largely erosion and denudation.

The landform is controlled by lithology, and its main characteristics are Karst landform; the types of terrain consist of mountain land areas, hilly areas and flat dam areas, and the mountainous terrain is dominant, and terrain is higher in the northeast and lower in the southwest. It is bordered by the E (mei)Jia(River) Plain to the north, the mountain lands in southwestern Sichuan to the southwest, and the hills in central y Sichuan to the east. The whole terrain slopes, and the south-west middle hills and low middle hills have transformed gradually into middle low hills and low hills, and the north-east terrain is hills and flat dam. It main distribution: To the west of the Dadu River is the middle hill areas in the San’eshan and er’eshan regions, with the highest altitude of 2027 meters; to the east of the Dadu River and the south of Moxi River is the low hill area in the rgion from Wuxiangeng to Tongjiezi, with an altitude of 600 ）882 meters; the mountainous area accounts for 72.7%of the total area; the hilly areas are located to the east of Fengdujie and the Moxi River, with an area of 71 square kilometers; flat dam areas are located along the Dadu River and the Moxi River, consisting 11-level terrace, I-level terrace and floodplain, with 13.6% of the total area.

Meteorology Project site belongs to the central subtropical humid monsoon climate, the monsoon climate is obvious, there is no severe winter and no intense heat in summer, and it has clear-cut four seasons, abundant rainfall, long summer and short fall; there is little frost and snow throughout the year, the wind speed is low, and there are more cloudy days and less sunshine, the air pressure is low, and the humidity is high. It has

91 an average annual temperature of 17.3 ）, the extreme maximum temperature is 38.l ）, the extreme minimum temperature is -4.3 ）, the average temperature in January is 7 ）, the average temperature in July is 26 ）, and the active accumulated temperature ≥ 10 ） is 5533 ）; the annual minimum temperature is above 0 ） ; the frost-free period lasts 333 days, and the heats are rich; the annual mean pressure reaches 91410Pa, the annual maximum rainfall in this region is 1650mm (in the year of 1975), the minimum annual rainfall is 914.1mm, the average annual rainfall is 1120.7mm, 85% of annual precipitation concentrates in April~September, the maximum daily rainfall is 248.2mm, the average annual evaporation is 900mm, and the minimum evaporation is 450mm; the average relative humidity is 81%; the total annual Hours of Sunshine is 1174.9 hours.

The dominant wind direction in this region is north wind, the sub-dominant wind direction is northwest wind, the average annual wind speed is 1.2m / s, and the frequency of steady wind is 38%.

Hydrology Dadu River and Moxi River are the major rivers within the Shawan District. The water functions of the Dadu River are mainly industrial water source, agricultural irrigation, flood discharge, shipping, etc..

Dadu River, which was called Moshui (which was also known as the Tong River) in ancient times, takes its rise at the southern foot of the Bayan Har Mountains in Qinghai Province, Dajinchuan and Xiaojinchuan join up with each other in the east of Danba County, then it flows across Shimian, Hanyuan and E’bian autonomous counties and goes into this region at the Liziping Village of the Fandian Township of the Shawan District, after that it flows across 11 townships and towns and offices, including Fandian, Tongzi, Gongzui, Niushi, Fulu, Hulu, Zhenxi, Tanba, Shawan, Mojiang, Taiping, Jianong and so on, it flows out of this region at Liaoyuan Village of the Jianong Town and flows into the Xiajiang River in Leshan. The river in this region has a length of 118 kilometers, and its catchment area accounts for 369.35 km 2. The average annual flow rate recorded by Fulu hydrological station of the Dadu River is 1490m 3/s. The lower reach of the Dadu River starts from Shimian to Tongjiezi, and the reach from Tongjiezi to Leshan City and flowing into the Xiajiang River is the estuary of the river. The Dadu River in Shawan District belongs to lower reach and estuary of the river. The major tributaries accepted by the Dadu River in Shawan District are: Fandiangou, Liugou, Woxi, Xiancungou, Chaqigou, and Liubinggou. The other streams are small rivers in mountains.

Moxi River, which is a minor tributary of the Mengjiang River, takes its rise from the northern slope of the Fengding Mountain, and it flows into the Mengjiang River at the Xirong Town of Wutongqiao District. It has a catchment area of 313 square kilometers and a length of 44 kilometers, and its average flow rate is 6.95m 3/s (the flow rate drawn by Damo electric power station from the Dadu River). The length

92 in this region is 24km, and it has a catchment area of 56.8 km 2 till the surface water goes out of this region. The cross-section flow rate is 1.52m 3/s. The major tributary of the Moxi River in the territory is Modaogou.

After the treatment through the sewage station self-built by the plant site, the waste water generated by this project reaches the “Discharge Standard of Water Pollutants for Paper Industry” (GB3544-2008), after that the waste water is discharged into the Dadu River through outfalls.

The project is located between the Tongjiezi hydropower station and the Shawan hydropower station, and it is about 1.5km away from the Tongjiezi hydropower station dam upstream and about 10km away from the Shawan hydropower station downstream, and the minimum let-down flow rate of the Shawan hydropower station is 400m3/s.

Ecological Affected By the geographical environment of the project location, the natural vegetation can be divided into three vegetation spectrum: the shrubs, bushes and warm bamboos with an altitude of 1,000 meters above sea level; wet bamboo, subtropical evergreen coniferous forest, subtropical shrub-leaved and broad-leaved forest, subtropical evergreen broad-leaved forest with an altitude of 1300 meters below sea level; mixed deciduous broad-leaved and evergreen broad-leaved forest in warm wet zone with an altitude of 1300 meters above sea level. There are 3,000 kinds of plants and 400 kinds of animals. Main tree species include fir, cedar, masson pine, chestnut, camphor, Banmu tree, cypress, etc.; valuable trees include by Anluo tree, Chinese yew, Podocarpus, ginkgo, Osmanthus, Yong tree. The wildlife under second- class special state protection are otter, macaque, little civet, hellbender, goshawk, etc. Rare animals include Kallima inachus, earthworm and hummingbird. Main Chinese herbal medicines are berberine, Atractylodes, Gastrodia elata, Codonopsis, semen coicis, ophiopogon root, Baiyi, Alisma, mint, Nepeta, papaya, Fructus Aurantii, Gardenia, Magnolia Bark, Eucommia, fleece-flower root and so on.

Within the region where the project is located, there is no distribution of species covered by the lists of wildlife under special state protection, and there is no distribution of plants and animals under special protection.

Soil The soil types in Shawan District consist of 6 soil categories, namely paddy soil, fluvo-aquic soil, purplish soil, yellow soil, yellow brown soil and limestone soil. The proportions of various soil types against total arable land are: the area of paddy soil is 73,047 mu, accounting for 42.58%; the area of fluvo-aquic soil is 7838 mu, accounting for 4057%; the area of purplish soil is 20,281 mu, accounting for 11.82%; the area of yellow soil is 42,413 mu, accounting for 24.72%; the area of yellow brown

93 soil is 15,682 mu, accounting for 9.14%; the area of limestone soil is 12,302 mu, accounting for 7.17%.

Mineral resources This region is rich in mineral resources, and there are more than 20 kinds of proven minerals, namely iron ore, copper ore, bauxite, placer gold, and lead-zinc ore, Hard refractory clay minerals, coal, phosphate, green pisolite, gypsum mine, solvent limestone, granite, basalt, rock salt, bittern, dolomite, arkose mine, sandstone, mudstone.

Iron ore: it is mainly distributed in Niushi, Si’eshan, Tongzi Qinggangping, Shawan and other places, the Xinhua mining area is dominant, the thickness of main seam is 1.05 ）0.41 meters, with an average thickness of 0.58 m, and the iron grade is 36.61~41.01%.

Copper ore: it is distributed in Si’eshan, Niushi, Shawan, Qinggangping and other places, the Si’e mining area is dominant, the average thickness of seam is 77 m, and the average grade in the mining area is 0.82%; the ore types include copper clay shale ore and sandstone that contains copper.

Bauxite: it is distributed in Si’eshan, Niushi, Shawan and other places, the Xinhua mining area is dominant, with the maximum thickness of 7.49 m and the minimum thickness of 0.47 m, the general thickness is 1 ）1.5 m, and there are three ore types, namely gibbsite bauxite, kaolinite gibbsite bauxite, gibbsite bauxite that contains chlorite.

Placer gold: it is mainly distributed in the backswamps and terraces along the Dadu River and Moxi River within this region, there is no formed gold ore, with a reserve of about 625 kg, the bottom of the terraces along the Dadu River in Huluba yield more gold, the gold content per cubic meter is 10 ）20 mg, and the limestone caves at the bottom of individual terraces are particularly rich in placer gold.

Lead-zinc ore: it is distributed in located in the southwest mountains within the territory, and most mines shows "nest-like" sporadic distribution in Shuichiba of Fandian Town.

Hard refractory clay minerals: it is distributed in Shawan Town, Fandian Town and other towns, the Shawan mining area is dominant, with an thickness of 0 ）3.74 m and an average thickness of 0.80 meters.

Mine: it is mainly distributed in Taiping, Lushui, Fulu, Tanba and other townships and towns on the east bank of the Dadu River, with a reserve of 19 million tons, and all of the reserves are fat gas coal.

Phosphate: it is distributed in the vicinity of Fandian, and the seam length within this area is about 6000 meters. At places 400 meters away from the northeast end, the average thickness is 1 m, with an average grade of 19.08% of phosphorus pentoxide; at places 600 meters away from the southeast end, the average seam thickness of 094 m, with an average grade of 15.88%; In othe areas, the seam thickness is below 05 meters.

Green pisolite: it is mainly distributed in the vicinity of Gongzui Town (Jinniu Village). It is distributed over an area of 50,000 square kilometers, the seam thickness is 0.79~5.04 m, and its average seam thickness is 1.83 m. The ore grade contains 6.30%~8.70% of potassium hydroxide, with an average grade of 7.67%. The type is dense massive hydromica claystone.

Gypsum mine: it is distributed in the vicinity of Lunxi and Gongzui, there are seven layers in this region, the main mine contains four layers, with an average thickness of 3.62~6.34 m and a grade of 69.18%~81%, and the total reserves in the mining area is 146,990 tons.

Solvent limestone: except Bishan Township, there are distribution of limestone mine in all the other areas, the reserves is 1 billion tons, most of the mines are open- pit ones, the content of calcium oxide is usually above 50%, and it is an important raw material (ingredient) for production of building materials, chemicals and metallurgy. The dense black limestone in the mining area can be used as decorative sheet as "black marble".

Granite: it is mainly distributed in Fandian Township, Gongzui Town along both sides of the Dadu River, and the reserves for mining account for 550,000 cubic meters, and the open-pit mining is adopted.

Basalt: it is distributed in Shawan Town, the thickness is 200 ）400 meters, and it can be used to produce cast stone and rock wool.

Rock salt and bittern: it is distributed in the Hongbi Mountain within the Bishan Township, the reserves are abundant and the mining history is long, its origin can be dated back to the Song Dynasty, and the monthly yield of salt reached 1.05 million kg on the eve of liberation.

Dolomite: it is mainly distributed in Fandian, Gongzui, Luoyi and Liubinggou of Shawan, its reserves accounts for 18 million tons, there is a predominance of it in

Daiwan and Liziping of Fandian Township, the content of calcium oxide is between 19 ）21% , and it is an important raw material (ingredient) in metallurgy and the production of building materials and chemicals.

Arkose mine: it is mainly distributed in Tanba, Lushui, Taiping and other townships and towns, Huyan of Tanba Township is the main mining area, the thickness is 30 ）40 meters, the long-term reserves is 31.57 million tons, and the content of silica is 85.88% ）93%. It can be used to produce glass, ceramics and so on.

Sandstone and mudstone: sandstone is distributed mainly in Luocao of Shawan, and mudstone is distributed mainly in Jianong Sudian’er, with a reserve of 10 million tons.

3.2 Overview of social environment

Administrative divisions, population Shawan District covers an area of 61,706 square kilometers, and it has a population of 201,913 people. By the end of 2008, the whole District has 8 towns, 5 townships and I office, namely Shawan Town, Jianong Town, Taiping Town, Tashui Town, Fulu Town, Niushi Town, Gongzui Town, Hulu Town, Bishan Township, Tanba Township, Zhuanxi Township, Tongzi Township, Fandian Township, and Mojiang Office.

Fulu Town covers an area of 71.42 square kilometers, it has a population of 20,939 people, and under this town, there are 20 villages, namely, Nongke, Pingyuan, Huanlin, Lanba, Gongdian, Daping, Sushan, Tanggou, Leidian, Shawan’er, Luojiawan, Feilinwan, Ganbazi, Huangnipo, Wanfuqiao, Yanziba, Heiniudi, Liangfeng, Shuicuanzi and Guangfangsi, as well as 134 villagers groups.

Overview of society and economy 1. Shawan District In 2009, regional GDP reached 8.49 billion Yuan, up 17.6% on the previous year (same as below). The general local budget revenue reached 270 million Yuan, up 22.7%. The total social fixed asset investment reached 5.65 billion Yuan, up 56.5%. The total retail sales of consumer goods reached 1.69 billion Yuan, up 18.9%. The per-capita disposable income of urban residents averaged 13,682 Yuan, up 11.5% and up 1416 Yuan over the previous year; the per-capita net income of farmers reached 5472 Yuan, up 12% and up 582 Yuan over the previous year. The registered urban unemployment rate was 4.1%; the natural population growth rate was 1.49 ‰, 1.51 per thousand points lower than the planned target. The total production energy consumption per 10,000 Yuan regional GDP fell by 5.6%, which was 0.1 percentage points lower than the planned target; the emission reduction of major pollutants fell by 3.1%, which was 1.1 percentage points lower than the planned target.

2. Fulu Town In 2009, Fulu Town realized total scaled industrial output 262 million Yuan; the added value of scaled industrial enterprises reached 110 million Yuan; the profit of scaled industrial enterprises reached 9 million Yuan; the profits and taxes of scaled industrial enterprises reached 22 million Yuan; the total volume of retail sales of consumer goods reached 143 million Yuan; the fixed assets investment of the whole society reached 170 million Yuan.

In 2009, the total output value of agriculture reached 47.5 million Yuan, up 4% over the previous year, the total grain output reached 7015 tons, and the per-capita net income of farmers reached 5467 Yuan, up 566 Yuan over the previous year.

In 2009, rural infrastructure construction was improved. Full effort has been put in the strengthening of road construction in rural areas, the length of newly built gravel road is 10.4 km, the length of hardened road to villagers groups for mechanized farming and the road to home accounts for 15.5 km, 48.7 km village road in 20 villages has fully completed, and the village road and network road have extended across 8 km; Tanfu Road has been basically completed, the construction of Fujian Road has been fully carried out, Fulu Town’s transport hub and geographical advantages has become increasingly obvious. There are 44 newly-built reservoirs, and they has a storage capacity of 8,000 cubic meters, the project concerning safe drinking water for 5000people in 10 village has been completed, the overhaul of rural power grids in Feilinwan Village has been fully completed, and the rural infrastructure has become more perfect.

4. The monitoring, investigation and assessment of the current environmental status The pollutants discharged externally by Jinfu Company have changed little since 2010, and there is no other newly-built project in operation within the assessed area, thus the regional environment has not changed significantly. Therefore, the assessment of the current environmental status utilizes the monitoring data concerning the “construction project with an annual output of 52,000 tons of pulp and 57,000 tons of paper products and related device” (the monitoring carried out on June 15-21, 2010).

4.1 The current status of surface water environment

1. Monitoring section For this project, the water body that contains pollutants is the Dadu River, so the assessment has set up four surface water monitoring sections on the assessed river reach of the Dadu River. The location of water quality monitoring sections can be seen in Table 4-1 and Figure 3.

Table 4-1 Location of surface water quality monitoring sections Remarks Surface water No. Section location

Dadu River Niushi Bridge, about 1000m away I / from upstream of the project outfall Bay power Upstream of Jizhenchang plant reservoir upstream of Fulu ） Town, about 2500m away from downstream of the outfall

Within the reservoir Upstream of Damo Power area of Shawan Power Station, about 6000m ） Station away from downstream of the outfall

Downstream of the Downstream of Shawan reservoir area of Power Station, Shawan Power Station ） about10000m away from downstream of the outfall

2. Monitoring indicators For this project, there are nine surface water monitoring indicators in total,

namely pH, SS, COD Cr , BOD 5, ammonia nitrogen, total phosphorus, total nitrogen, sulfur and volatile phenol.

3. Monitoring period The environmental monitoring station in Shawan District of Leshan City monitored the above indicators once a day for three consecutive days from June 15-17, 2010.

4. The monitoring of water quality and the assessment results The monitoring of current status of surface water environment and the assessment results can be seen in Table 45.

From the table, it can be seen that the indicators of each assessed section on the Dadu River meet the requirements on the Class water area in the “Environmental Quality Standards for Surface Water” (GB3838-2002).

Table 45: Monitoring of surface water quality and results Unit: mg/L Item Monitoring indicators Volatile pH SS COD BOD NH -N TN TP Sulfide Cr 5 3 phenol Section Standard ≤0.2 6）9 / ≤20 ≤4 ≤1.0 ≤1.0 ≤0.2 ≤0.005 (））） 0.05) Concentration 8.29~8.31 14~15 7.78~7.84 1.22~1.24 0.180~0.183 0.272~0.275 0.021~0.022 0.01 0.001 range I Pi range value 0.645~0.655 / 0.389~0.392 0.305~0.31 0.180~0.183 0.272~0.275 0.105~0.11 0.05 0.2 Unattainment 0 / 0 0 0 0 0 0 0 rate (%) Concentration 8.32~8.34 15~17 8.20~8.21 1.36~1.38 0.184~0.185 0.274~0.275 0.023~0.025 0.01 0.002 range ） Pi range value 0.66~0.67 / 0.41~0.415 0.34~0.345 0.159~0.646 0.274~0.275 0.115~0.125 0.05 0.4 Unattainment 0 / 0 0 0 0 0 0 0 rate (%) Concentration 8.31~8.33 17~18 8.22~8.26 1.37~1.39 0.185~0.187 0.275~0.276 0.024~0.025 0.01 0.002 range ） Pi range 0.655~0.665 / 0.411~0.413 0.343~0.348 0.185~0.187 0.275~0.276 0.12~0.125 0.05 0.4 Unattainment 0 / 0 0 0 0 0 0 0 rate (%) Concentration 8.34~8.35 18~19 8.26~8.28 1.40~1.41 0.186~0.187 0.276~0.278 0.024~0.025 0.01 0.002 range ） Pi range 0.67~0.675 / 0.413~0.414 0.35~0.353 0.186~0.187 0.276~0.278 0.12~0.125 0.05 0.4 Unattainment 0 / 0 0 0 0 0 0 0 rate (%)

4.2 The current status of groundwater environment

1. Monitoring point One groundwater monitoring point is set up, and the monitoring point can be seen in Table 46 and Figure 2.

Table 46: The monitoring point fro groundwater quality Item Location of monitoring Remarks point Projects and waste Backup well of plant Groundwater water stations downstream, water station but upstream of the outfall

2. Monitoring Factor There are eight monitoring items in total: pH, color, total hardness, sulfate, chloride, volatile phenol, ammonia nitrogen and permanganate index.

3. Monitoring period The environmental monitoring station in Shawan District of Leshan City sampled once a day and monitored the above indicators for 3 consecutive days from June 15-17, 2010.

4. The monitoring of water quality and the assessment results The result of current status monitoring of groundwater environment quality and the assessment table concerning groundwater quality can be seen in Table 47.

Table 47: Groundwater quality monitoring results Unit: mg / L Classification Monitoring indicator Total Volatile pH Color Sulfate Chloride Ammonia Permanganate index Point Standard hardness phenol 6.5~8.5 ≤15 ≤450 ≤250 ≤250 ≤0.002 ≤0.2 ≤3.0 Concentration 7.97~ 225.2~ 122.3 17.82 0.145 1.37 3 0.001 range 8.05 225.5 ~122.8 ~17.88 ~0.148 ~1.39 Water station Unattainment 0 0 0 0 0 0 0 0 multiple The one marked "*" is the non-detected sample, the monitoring value is calculated according to Remarks 1 / 2 detection limit ; pH is dimensionless; the unit of total coliform group is number/ L.

Table 48: The assessment results concerning groundwater quality Item Pi value range Assessment indicator Standard pH 6.5~8.5 0.81~0.82 Color ≤15 degree 0.2

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Total hardness ≤450 0.500~0.501 Sulfate ≤250 0.489~0.0.491 Chloride ≤250 0.071~0.072 Volatile phenol ≤0.002 0.5 Ammonia ≤0.2 0.725~0.74 Permanganate index ≤3.0 0.457~0.463 Remarks

From the table, it can be seen that the indicators of groundwater at each monitoring point meet the Class ） water quality standard in “Quality Standard for Ground Water” (GB/T14848-93).

4.3 The current status of ambient air quality

1. The location of monitoring point There are 6 ambient air monitoring points in total, and their specific location can be seen in Table 49 and Figure 2.

Table 49: The layout of ambient air monitoring points Distance No. Name Position away from the Monitoring indicators Remarks chimney (m) Chimney for alkali Within 1# / SO ）NO ）PM recovery plant area 2 2 1 Fuluzhen Police 2# NE 4000 SO ）NO ）PM Station 2 2 10 Fuluzhen Middle 3# NE 3500 SO ）NO ）PM School 2 2 10 / Niushizhen Center 4# W 400 School SO 2 NO 2 PM 10 Tongjiezi power 5# SW 800 SO ）NO ）PM station 2 2 10 Tongzi township 6# SW 4500 SO ）NO ）PM government 2 2 10

2. Monitoring indicators There are 3 monitoring indicators in total: sulfur dioxide, nitrogen dioxide and

PM 10 .

3. Monitoring period and frequency During June15~21, 2010, continuous monitoring was carried out for 7 consecutive days. The sampling of SO 2 and NO 2 was carried out four times a day, each sampling time was 1 hour, and the sampling frequency in each hour was: 2:00~3:00, 8:00~9:00, 14:00~15:00, 20:00~21:00. PM 10. The daily average value of PM 10 was monitored for 7 consecutive days, and the monitoring time of PM 10 was 12 hours.

4. The monitoring of current status of ambient air quality and assessment results The single quality index assessment method has been adopted, so as to calculate the quality index value of various air evaluation factors at each monitoring point. The

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monitoring statistics of ambient air quality status within the project area and the assessment results of the ambient air quality status can be seen in Table 50.

Table 50: The monitoring statistics of ambient air quality status and the assessment results Mean value SampleMonitoring Sampling days Standard point project Concentration range Unattainment Maximum Pi value ）mg/m 3） rate of% unattainment multiple value range (mg/m 3)

SO 2 7 0.0201 ）0.0285 ≤0.50 0 0 0.040~0.057

1# NO 2 7 0.0222 ）0.0243 ≤0.24 0 0 0.093~0.101

PM 10 7 0.126~0.131 ≤0.15 0 0 0.84~0.87

SO 2 7 0.0201 ）0.0275 ≤0.50 0 0 0.040~0.055

2# NO 2 7 0.0220 ）0.0237 ≤0.24 0 0 0.092~0.047

PM 10 7 0.121~0.130 ≤0.15 0 0 0.807~0.867

SO 2 7 0.0210 ）0.0239 ≤0.50 0 0 0.042~0.048

3# NO 2 7 0.0210 ）0.0229 ≤0.24 0 0 0.0875~0.095

PM 10 7 0.125~0.128 ≤0.15 0 0 0.833~0.853

SO 2 7 0.0200 ）0.0242 ≤0.50 0 0 0.040~0.048

4# NO 2 7 0.0208 ）0.0223 ≤0.24 0 0 0.087~0.093

PM 10 7 0.120~0.129 ≤0.15 0 0 0.80~0.86

SO 2 7 0.0190 ）0.0216 ≤0.50 0 0 0.038~0.043

5# NO 2 7 0.0192 ）0.0212 ≤0.24 0 0 0.080~0.088

PM 10 7 0.092~0.097 ≤0.15 0 0 0.613~0.647

SO 2 7 0.0190 ）0.0213 ≤0.50 0 0 0.038~0.043

6# NO 2 7 0.0187 ）0.0211 ≤0.24 0 0 0.078~0.088

PM 10 7 0.090~0.092 ≤0.15 0 0 0.600~0.613

Note: The measured value of SO 2, NO 2 is hour value, and the one of PM 10 is daily mean value

As can be seen from Table 50, the indicator values at each monitoring point within the scope of the project attain the standard and satisfy the secondary standard in the “Air Quality Standard” (GB3095-1996).

4.4 The current status of the quality of acoustic environment

1. The layout of monitoring points There are 12 monitoring points (1 #~ 12 #) in the vicinity of the plant site. The location of the monitoring points can be seen in Table 51 and Figure 3.

Table 51: Distribution of noise monitoring points

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No. Location of monitoring points Remarks

1# Secondary pumping at the boundary of waste water treatment plant

2# ABR pool at the eastern boundary of waste water treatment plant

Primary precipitation tank at the eastern boundary of waste water 3# treatment plant

Agent addition room at the eastern boundary of waste water treatment 4# plant

5# Mechanical repair workshop at the northern boundary of the plant

Environmental noise 6# Transformer room at the north-west boundary of the plant within the boundary of the plant

7# The boundary of the plant to the northwest of the project

8# Boiler house of the project

9# The boundary of the plant to the west of the project

10# Caustic workshop by the highway

11# The boundary of the plant to the south of the project

Combustion section workshop at the boundary of the plant to the south 12# of the project

2. The assessment of the current status of acoustic environment

Table 52: Monitoring results of the noise status Unit: dB ( Α) Noise monitoring value Monitoring sites Position Day Night 1# N 57.0 46.2 2# N 57.6 46.5 3# NE 57.5 46.4 4# E 57.8 46.6 5# NE 59.3 48.4 6# NW 59.8 49.6 7# W 59.7 49.4 8# W 59.8 49.7 9# W 59.6 49.3 10# SW 59.5 49.2 11# SW 59.2 48.9 12# SW 59.0 48.7

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Class 2District in the GB3096-2008 60 50

As can be seen from Table 4-7, the regional acoustic environment meets the standard concerning Class 2 District in the "Acoustic Environment Quality Standard" (GB3096-2008) in s.

4.5 Monitoring of pollution sources

Waste gases 1. Monitoring points The upper ends of chimneys in alkali recovery workshop and boiler house.

2. Monitoring indicators There are 2 monitoring indicators for waste gases in total, namely smoke dust and sulfur dioxide.

3. Monitoring period The environmental monitoring station in Shawan District of Leshan City monitored the existing pollution sources of Jinfu Company on June 17, 2010.

3. Monitoring results Monitoring results can be seen in Table 53.

Table 53: Monitoring results concerning organized emissions of waste gases and assessment Item Gas emission Smoke dust Sulfur dioxide (N.d.m 3/h) Frequency Emission Emission Emission Emission concentration (kg/h) concentration (kg/h) (mg/N. m 3) (mg/N.m 3) 3 sets of 49t boiler Group ） 54603 129.8 7.07 681 37.25 Group ） 48882 128.4 6.27 719 35.21 Group ） 61967 130.4 8.06 685 42.51 Homogeneous 55150 129.5 7.14 695 38.33

Performance standards / ≤200 / ≤900 / Assessment results / Reach standard / Reach standard / Remarks The performance standard in the Table is the national environmental protection standards: the “Emission Standard of Air Pollutants For Coal- burning Oil-burning Gas-fired Boiler” (GB13271-2001) Alkali recovery Group ） 53432 156.8 8.37 4.2 0.228 boiler Group ） 54026 149.7 8.10 5.0 0.276 Group ） 53730 160.9 8.64 4.0 0.216

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Homogeneous 53729 155.8 8.37 4.4 0.24 Performance standards / ≤200 / ≤850 / Assessment results / Reach standard / Reach standard // Remarks The performance standard in the Table is the national environmental protection standards: the “Emission standard of air pollutants for industrial kiln and furnace” (GB9078-1996) and the “Integrated Emission Standard of Air Pollutants” GB16297-1996)

As can be seen from the above Table, all of the organized gases emitted by Jinfu Company satisfy relative emission standards.

Waste water 1. Monitoring points: The inlet of waste water station and the outlet of the sewage station

2. Monitoring indicators There are 7 monitoring indicators for the inlet and outlet of the sewage station, namely pH, color, SS, BOD 5, CODcr, ammonia, a total of seven.

3. Monitoring period The environmental monitoring station in Shawan District of Leshan City monitored the existing pollution sources on June 17, 2010.

4. Monitoring results The monitoring results of water pollution sources can be seen in Table 54.

Table 54: The sewage monitoring table for the inlet and outlet of the waste water station Unit: mg / L Monitoring Water Color Ammonia item amount pH SS CODcr BOD Times 5 nitrogen Monitoring points (m 3/h)

Inlet of sewage 296.8 7.18 128 278 778 157.3 6.54 station

Outlet of sewage 294.2 6.74 32 48 141 28.5 2.57 station

GB3545-2008 / 6~9 50 50 150 30 10

As can be seen from the Table, the waste water discharge limits of the project satisfy the relevant standards in the “Discharge Standard of Water Pollutants for Pulp and Paper Industry” (GB3544-2008).

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4.6 The newly-added content for the monitoring of environmental

status in this EIA

The environmental quality monitoring concerning newly-added pollution factor in this project In order to better investigate the current environmental quality status of newly- added pollution factor (methanol) in the vicinity of the project, this assessment monitored the status of methanol in surface water of the section of the Dadu River downstream, which was 100m away from the outlet of the waste water station of this project; and the monitoring of the status of methanol in atmospheric environment was carried out at the monitoring point to the south of the boundary of the plant. Monitoring time is June 2011.

No methanol was detected in surface water and atmospheric environment.

The monitoring concerning groundwater nearby the white mud dreg site Jinfu Company’s white mud dreg site has been used for several years, thus in order to understand the impact of white mud storage on groundwater environment, this assessment monitored the groundwater at 3 points in the vicinity of the white mud dreg site. Monitoring period is June 2011, and the monitoring institution is the environmental monitoring station in Shawan District of Leshan City.

There are 5 monitoring factors in total: pH, color, smell and taste, total hardness, as well as permanganate index.

The monitoring results of the groundwater quality on white mud dreg site can be seen in Table 55.

Table 55: The monitoring results of the groundwater quality on white mud dreg site Unit: mg/L Monitoring points 1# 2#( downstream) Assessment 3#( upstream) (observation (the nearest farmers Standard indicator (the nearest farmers well on to the east) to the west ) dreg site) pH 8.12 7.95 7.90 6.5~8.5 Color 2 0 0 ≤15Degree Smell and taste No No No No Total hardness 243.7 236.2 234.5 ≤450 Permanganate index 2.13 1.84 1.78 ≤3.0

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As can be seen from the Table, all of the indicators at the groundwater monitoring points satisfy the standard concerning Class ） water quality in the “Quality Standard for Ground Water” (GB/T14848-93), thus it indicates that the operation of the enterprise’s white mud dreg site has little effect on groundwater.

4.7 Investigation of the current status of corporate environmental management and assessment Environmental management department Jinfu Company’s existing environmental management department is the Safety and Environmental Protection Department, which is responsible for the implementation of environmental protection management during the operation period of the project, and there are 5 full-time staff engaged in environmental protection in total. Co-ordination by the general manager, department managers take specific responsibility for the management of environmental protection in the whole plant, cleaner production and other daily works, and 2 part-time environmental managers are appointed in each workshop for the maintenance of environmental protection facilities in each workshop and the communication with the Safety and Environmental Protection Department. There are 2 other full-time people of the Safety and Environmental Protection Department to be responsible for the management of occupational health.

The responsibilities of environmental management department National and local laws, regulations and policies concerning environmental protection, as well as the requirements of the competent departments of environmental protection at all levels should be implemented; combined with the processes of the enterprise, the company's policy on environmental protection should be implemented, and the duties and regulations concerning environment protection in various departments and for each position should be determined according to the company's the management system for environmental protection;

The environmental pollution and ecological damage construction should be controlled during the construction period, barbaric construction should be eliminated, and the treatment of "three wastes" and noise control work during construction period should be guided and supervised, so that the environmental pollution and ecological damage can be reduced to a minimum during the construction period;

The files concerning pollution sources, environmental protection infrastructure and technological process during the operation period should be established and improved; Statistical studies on the data and reports concerning the emission of pollutants and the operation of environmental protection facilities should be conducted monthly.

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The routine monitoring and maintenance of environmental protection facilities and equipments should be carried out, so as to deal with various problems concerning environmental protection as they arise and keep records;

For environmental protection and safety in production, related propaganda and technical training should be carried out;

The management should be strengthened, and the emergency systems and response measures concerning the abnormal wastewater discharge and waste gas emission should be established, so as to minimize the impact of abnormal discharge.

The environmental management department should be responsible for the safety management of the plant's storage, transportation and use of hazardous chemicals; it should be responsible for the formulation, establishment and revision of prevention measures concerning the risk of accident, as well as the implementation of emergency plans when an accident occurs; it should be responsible for the daily management and emergency disposal of facilities and equipments for fire and explosion prevention and chemical protection, the organization, exercise and implementation of evacuation measures;

It should be responsible for the occupational health protection and management of all factory staff; 5. Environmental impact prediction and assessment

Since this project has been completed and is in operation for many years, the environmental impact caused by its pollution emissions has been reflected by the environmental quality in this region. According to the routine monitoring carried out by local environmental protection department in recent years and the status of the monitoring in this assessment shows that (for details, see Chapter 4, Present Situation of Environmental Quality), the regional atmosphere environmental quality meets the requirements concerning Class II region in GB3095-1996, the assessed sections of the Dadu River meet the requirements concerning Class water areas in GB3838-2002, and the noises within the plant boundary meet the requirements of standards concerning Class 2 area in GB3096-2008. Thus it can be conducted that the operation of this project has little effect on the regional environment, and the completion of this project has not resulted in the unattainment of regional environmental quality or led to changes in regional environment functions.

5.1 The analysis of environmental impact during construction period This project has been constructed within the existing site of the factory, and there is no new land acquisition.

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According to the analysis of the program for project construction, the environmental impact caused by the proposed project during construction period is mainly manifested in the following areas:

• the removal of eliminated plants, site preparation, excavation works and the construction of structures may lead to damages to local ecological environment and ecological landscape; • the operation of construction machinery and the flow of transport vehicles will have a certain impact on the around the acoustic environment surrounding the construction area; • air-borne dust in construction worksites will have an adverse impact on local air quality of the area where the project lies; • the discharge of construction wastewater and domestic sewage at the worksite will have a certain impact of pollution on the shallow groundwater and surface water environment of water body accepting pollutants within the construction area.

1. The analysis of ecological environmental impact during construction period Project construction (which is primarily a variety of structures and buildings) will result in a certain degree of damage to the existing landscape and land surface, but these effects are relatively weak and temporary. As the completion of parts of the construction of civil works and the implementation of recovery measures at construction mark places, the damage to ecological environment caused by the construction will be eliminated. After planting trees, grass and flowers in accordance with the indicators of afforested areas within the plant site, the bare area within the factory has been reduced and the ecological landscape has been improved. It is easily to form small-scale soil erosion when the construction is carrying out during days with heavy rain. It is recommend that the construction institutions should take measures to optimize the construction program, so as to avoid earth-rock excavation in rainy season in their arrangements, thus the impact of construction phase on local water and soil erosion can be minimum.

2. The analysis of noise impact during construction period The noise sources of the proposed project include: the fixed noise sources using construction machinery, such as demolition, excavation works, piling, concrete works, structure (building) masonry, site clearance and repair, as well as the flowing noise sources caused by the transport vehicles for construction. Among them, the major impact comes from the fixed-source noises on the construction site, such as bulldozer, mixer, vibrator, etc., the strength of sound source is 85 ~ 95dB.

According to the relevant analysis and calculation, compared to the "Noise Limits for Construction Site" (GB12523-90) clearly established by the State, it can be concluded that the excessive machinery noises caused by construction during daytime is within a range of about 100m, which will has little effect on the surroundings, while there will be impact within a range of about 300m during night. It is recommended that low-noise equipments should be selected wherever possible, rationally arrange the construction time, avoid construction during night wherever possible, and take effective measures to control the noises at the construction site.

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• Construction period, time, construction schedule, the purchase time of raw materials for construction should be carefully arranged, systematically planned and implemented in a standard manner. The individual farmers in the vicinity of the plant site and other sensitive points should be protected; • Excessive mechanical noises should be prevent during the construction, in particular, the operations of concrete mixer, electric drills and other machines with strong noises during night should avoided, and the construction noises should meet the requirements of the "Noise Limits for Construction Site" (GB12523-90); • During the university entrance examination and night, construction should be prohibited, so as to avoid disturbing the people

3. The analysis of atmospheric environmental impact during construction period The waste gas sources of the construction of proposed project are primarily the fuel emissions of construction machines, dust pollution caused by demolition, dust pollution caused by foundation excavation and the transport of waste spoil, as well as the dust generated by the using of gravel materials and the mixing of concrete.

During the construction period of the project, the treatment of dust pollution caused by construction should be strengthened, so as to prevent construction dust from influencing the normal life of farmers scattered around. After the adoption of engineering measures, there will be no harm caused by air pollution to this region, and the following measures should be taken during the construction period:

Enclosed safety net for closed construction should be adopted during construction, the entrances and exits of construction site must be covered by straw mattress, tarpaulins for coverage must be used during clearing and removal, the spilling and leaking of construction materials during transportation should be minimized, the construction wastes on the road surface at construction site should be removed timely, water should be sprinkled appropriately to minimize dust pollution, the gap in the process of material transportation should be reduced wherever possible, thus the impact of dust pollution on the air can be reduced. In addition, at the main points that generate dust, the touching of waste gases and dust will bring adverse affect to the health of construction personal, so attention should be paid to construction personal’s labor protection.

4. The analysis of waste water impact during construction period The waste water sources of the proposed project during construction period can be divided into two parts:

The first part is the waste water generated by production on the construction site, which mainly originates from wastewater for washing the concrete mixing system and the mixer of gravel materials. Through investigation and analysis, the waste water generated by production mainly contains a relative high concentration of sediment and other suspended materials, pH value shows alkaline, and there is a small amount of greasy dirt, thus it should be treated for re-use without discharge.

The second part is the sewage generated by construction personal, which mainly contains COD Cr , BOD 5, NH 3-N, SS and other pollutants, the concentration of water quality is higher, and this part of wastewater can be drawn into waste water treatment

110 plant through the company's existing sewage system for treatment, and its sewage discharge has met the specified standard. During the construction period, oil separating sedimentation pond should be established for the disposal and re-use of waste, sewage can be treated through the enterprise’s waste water treatment station, so as to result in little impact on surface water.

5. The analysis of the mucking waste impact during construction period This project requires to dismantle the original floor and shop for the vacation of construction site, thus during the demolition, site excavation and construction, there will be some construction residue, waste earth and spoil generated. The construction site is flat, and the embankment and excavation can maintain a basic balance. The construction ballast caused by the demolition of old buildings should be dumped in designated areas in accordance with the requirement of the local government, so as to prevent significant adverse effects on the ecological environment.

In summary, the impact of the proposed project during the construction period is temporary, and after the completion of construction, various environmental factors that affect the region can be restored basically. As long as the civilized construction has been implementation strictly in accordance with construction norms, and effective measures have been adopted to mitigate environmental impacts, such as preventing dust and reducing noises, the environmental impacts during construction period can be eliminated or effectively controlled.

6. The environmental impact of relocation of migrants This project does not involve the relocation issue.

7. The analysis of impact caused by the removal of obsolete facilities in technological transformation project Among the eliminated waste removal facilities in this technological transformation project, liquid chlorine tank is the one concerning hazardous chemicals. At present, steel liquid chlorine cylinders are used, and they are supplied by the caustic soda plant of Fuhua Group, controlling shareholder of Jinfu Company, and they will be recovered by this plant after technological transformation, thus environmental pollution accident caused by the loss of hazardous chemicals and their containers will never occur;

After the removal, the existing spherical digester will be scraped and be sold to steel plants a scrap metal, and they shall not be sold to other pulp plants for use;

Other removed facilities and pipelines shall also be sold as scrap metal, the construction wastes will be sent to municipal landfill site for disposal, and the remaining liquid bleach and other chemical materials will be sent to Fuhua Group Company, controlling shareholder, for utilization.

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The nature of land use will never change before or after the technological transformation, the removal of eliminated devices during the technological transformation project will not affect the regional environment.

5.2 The analysis and prediction of the impact on surface water

environment during operation period After the implementation of the technological transformation project, the volume of waste water and the concentration of pollutants discharged externally are reduced, thus the pollution to the water environment of the Dadu River will be mitigated, and the positive benefits to environment are obvious. Therefore, this assessment only focuses on the analysis of the impact on the water environment of the Dadu River caused by abnormal discharge.

Surface water environment affects the main content of the prediction This EIA intends to be based on the total waste water that enters into the waste water station of the plant, and predict the impact of abnormal discharge of untreated waste water into the Dadu River, and analyze the degree of influence on the surface water quality of the Dadu River containing pollutants during the abnormal discharge.

Brief status of surface water environment 1. The distribution of rivers and the direction of flow In this project, the water that contains pollutants is the Dadu River. Dadu River joins the Qingyijiang River at Shizhong District of Leshan City, and then flows into the Minjiang River.

2. Assessment of the hydrological conditions of the reach The outfall of this project lies between Tongjiezi Hydropower Station and Shawan Hydropower Station on the Dadu River, there is about 1.5km away from the dam of Tongjiezi Hydropower Station in the upper reach, there is 10 km away from the dam of Shawan Hydropower Station in the lower reach and there is about 3 km away from the reservoir area of Shawan Hydropower Station. Shawan Hydropower Station is the complementary power station of the incomplete day controlled Tongjiezi Hydropower Station in the upper reach, so Shawan Hydropower Station dose not has regulatory function, and the minimum let-down flow rate of Shawan Hydropower Station is 400m 3/s.

The environmental hydrological parameters during the low-flow season for assessing the Dadu River reach can be seen in Table 56.

Table 56: Statistical data of hydrological parameters for assessing the reach during the low-flow season

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Flow rate in Average river Average flow Average gradient Reach low-flow season width (m) velocity ）m/s) (%) (m 3/s)

Dadu 400 200 0.5 0.131 River The intensity of source of abnormal wastewater discharge in this project Based on the engineering analysis of this project, this assessment has defined the intensity of abnormal emission in accordance with the most adverse circumstances.

Table 57: The intensity of abnormal emission of pollutants in wastewater of this project

Wastewater discharge Waste water rate COD Cr mg/L in accidents 11027m 3/d 0.128 1100 3 m /s

Predictor and predictive model Predictors: COD Cr Predictive model: this prediction adopts the two-dimensional model concerning the discharge on the riverbank.

C Q  uy 2 u B − y 2  = + p p + − 2( ) yxc ),( Ch exp( ) exp( ) H πM y xu  4M y x 4M y x 

Where:u——the flow rate of river, m/s;

Cp——the concentration of discharged pollutant, mg/L; 3 Qp——the flow rate of waste water, m /s;

My——horizontal diffusion parameter, m2 / s; C(x,y)—— the predicted concentration of certain pollutant at (x, y) point in the river , mg/L;

Ch——the background value of certain pollutant in the river , mg/L. My method uses the Taylor method: My=(0.058H+0.0065B)( gHI)1/2 ） Where:I——average gradient of river m/m;

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H——average depth of river m; B——average width of river m.

Parameter selection: hydrological parameters can be seen in Table 55.

The current status concentration of pollutants: the status background value of predictor of the Dadu River reach will adopt the maximum value of status monitoring

in each reach, namely COD Cr 8.28mg / L.

The quality of surface water environment affects prediction and assessment The prediction result of the abnormal discharge of the project can be seen in Table 58.

Table 58: The prediction result of impact of abnormal discharge of COD of the project on the water quality of the Dadu River (unit: mg/l) y(m) Predictor 1 2 5 10 20 50 80 100 150 200 x(m) 35.88 COD 1 9.294 8.280 8.280 8.280 8.280 8.280 8.280 8.280 8.280 cr 5 42.13 14.76 2 8.280 8.280 8.280 8.280 8.280 8.280 8.280 8.280 5 9 38.07 23.66 5 8.431 8.280 8.280 8.280 8.280 8.280 8.280 8.280 4 7 31.80 25.18 10 9.953 8.280 8.280 8.280 8.280 8.280 8.280 8.280 0 3 25.85 23.17 12.96 20 8.355 8.280 8.280 8.280 8.280 8.280 8.280 2 6 6 24.17 22.20 13.80 25 8.482 8.280 8.280 8.280 8.280 8.280 8.280 1 4 0 22.89 21.36 14.33 30 8.665 8.279 8.279 8.279 8.279 8.279 8.279 3 9 4 21.05 20.03 14.87 40 9.116 8.279 8.279 8.279 8.279 8.279 8.279 1 9 5 19.76 19.03 15.04 50 9.577 8.281 8.279 8.279 8.279 8.279 8.279 5 1 9 16.48 16.22 14.58 11.03 100 8.380 8.278 8.278 8.278 8.278 8.278 9 2 2 8 14.11 14.01 13.39 11.66 200 8.925 8.276 8.276 8.276 8.276 8.276 3 7 0 0

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13.04 12.99 12.64 11.59 300 9.378 8.275 8.274 8.274 8.274 8.274 8 5 5 3 12.40 12.37 12.14 11.42 400 9.651 8.277 8.272 8.272 8.272 8.272 9 5 5 2 11.97 11.94 11.78 11.24 500 9.807 8.286 8.270 8.270 8.270 8.270 2 7 1 7 11.28 11.27 11.18 10.87 750 9.948 8.343 8.266 8.266 8.266 8.266 8 5 4 9 10.87 10.86 10.81 10.60 1000 8 9 0 8 9.947 8.428 8.263 8.261 8.261 8.261 10.38 10.38 10.34 10.23 1500 6 2 9 7 9.844 8.592 8.271 8.253 8.251 8.251 10.08 10.08 10.06 2000 9 6 5 9.991 9.725 8.708 8.296 8.249 8.242 8.242 COD cr 2500 9.883 9.881 9.865 9.812 9.617 8.781 8.331 8.252 8.232 8.232 3000 9.728 9.726 9.715 9.674 9.523 8.824 8.366 8.261 8.223 8.223 3500 9.605 9.604 9.595 9.562 9.441 8.847 8.399 8.273 8.214 8.213 4000 9.504 9.503 9.496 9.469 9.369 8.857 8.427 8.287 8.206 8.204 4500 9.419 9.418 9.412 9.390 9.305 8.859 8.450 8.300 8.199 8.194 5000 9.345 9.345 9.339 9.320 9.248 8.854 8.468 8.313 8.193 8.185

From the prediction, it can see that a pollution belt of excessive COD with a width of 2m and a length of 40 m will form in the lower reach of the outfall of the project when the abnormal efflux of waste water of this project occurs. There is no serious impact on the water quality of the Dadu River. But the enterprise must prevent the occurrence of abnormal waste water discharge of this project.

Brief analysis of the generation of AOX and dioxin in waste water and their impact AOX (Absorbable Organic Halogen) refers to the total amount of (total chlorine) halogen elements (including fluorine, chlorine and bromine) that combine in organic compounds and can be absorbed by activated carbon under normal conditions, it is part of the total organic halogen, and it is a kind of specific pollutant that inevitably appears in the process of elemental chlorine containing bleaching; and dioxins are also chlorinated substances that generated in addition reaction, substitution reaction and replacement reaction of elemental chlorine and residual lignin in the bleaching process, such as polychlorinated dibenzo-p-dioxins and polychlorinated dibenzofurans. AOX and dioxins are persistent organic pollutants, which generate unconsciously in the pulping process, in addition to bleaching with chlorine, they also have something to do with the specific chemical structure of lignin, their quantity are very low and almost cannot be detected in the surface water, thus they influences the surface water environment on a small scale. Elemental Chlorine is a major factor that results in the generation of AOX and

dioxins, while ClO 2 reacts with lignin cannot generate any organic chloride, but the elemental entrained in the chlorine ClO 2 solution for preparation can result in the generation of a small amount of AOX, according to relative news reports, to choose the CEH chlorine bleaching process, which is older than the CEF

115 bleaching technology can reduce 75% of AOX generation, that means the AOX generated in bleaching can be reduced from 2.5kg/t•pulp to 0.8kg/t•pulp after this technological transformation, and then the generation of dioxins can be reduced.

Therefore, this project replaces the chlorine monoxide D0-EOP-D1 three-stage bleaching process with the existing C-E-H-P less chlorine bleaching technology, thus the generation of pollutants can be reduced at source effectively, and the attainment discharge of such pollutants can be ensured. The impact on surface water environment can be further reduced.

Summary of projection of water pollutant discharge of this project The above analysis shows that the water pollutants discharged externally can be significantly reduced after the implementation of technological transformation of the project, thus its pollution effect on the water quality of the Dadu River shows positive benefits; and the abnormal discharge of wastewater of this project shows insignificant impact on the water quality of the Dadu River, thus it will not change the water environment functions of the Dadu River.

5.3 The analysis of the impact on groundwater environment

The zone of aeration on the project site has a relative strong anti-fouling property, the location of this project belongs to Emeishan basalt formation (P2β), which is lacking in underground water, while the ground water is basalt fissure water, which has characteristics of small amount and poor flow, and the shallowest depth of underground water is about 10m. The local flow direction of groundwater is westwards to the Dadu River. The hydro-geological map of the project site can be seen in Map 4.

This project will be constructed within the existing plant, and the existing impervious facilities will be further strengthened in the process of construction and renovation. A complete and comprehensive work for seepage control should be carried out on all parts that may lead to leakage, such as pool, slurry tower, waste water station, tank, pipe, etc., the seepage control of bend, socket and joint at pipeline, pool, etc. should be strengthened, meanwhile, the record of concealed work should be kept. The flow of polluted groundwater can be effectively controlled. According to this assessment, the waste water discharged by this project will not cause groundwater pollution.

5.4 The analysis of the impact on atmospheric environment during

operation period The analysis of the impact of major air pollutants of the enterprise This technological transformation project do not involve alkali recovery, boiler room and other major emitters of air pollutants among the enterprise’s workshops, after the implementation of this project, the enterprise’s emissions of SO 2 and other major air pollutants remain unchanged or decreased (because steam consumption will

116 be reduced), this assessment will utilize the EIA results of the "Energy-saving Technological Transformation Project" of Jinfu Company.

According to the EIA report, the "Energy-saving Technological Transformation Project" of Jinfu Company belongs to air pollutant emission reduction project, and after the implementation of this project, regional air quality within the assessed area will be improved, and there will be no adverse impact on the environmentally sensitive points in the vicinity of the project site.

The establishment of width of sanitary protection zone of this project After the implementation of this project, the pulping waste gas collector and disposal system will be newly added, so as to deal with the emission of unorganized foul-smelling gases, most of the foul-smelling gases will be emitted under standard in an organized manner after treatment, more than 90% unorganized foul-smelling gases emitted by the enterprise will be reduced, thus the impact on nearby atmospheric environment will be mitigated. But there is no quantitative criterion concerning the concentration of foul-smelling gases in relevant environmental protection standards, so it is difficult to carry out predictive analysis in a quantitative manner, so the width of sanitary protection zone in this assessment remains 100m: It refers to "define the width of sanitary protection zone with center at cooking, black liquor concentration device and chemical workshop within the plant site and radius equal to 100m", and towards waste water station, it refers to “define the width of sanitary protection zone with center at aeration tank, sludge thickening and filter-press room of the waste water treatment station and radius equal to 100m”. There is no residents within this range, so it doesn't need any relocation.

This EIA proposes that: within this range, no residents, school, hospital, and manufacturers of foods or pharmaceutical products shall move into henceforth . After approval, this EIA must be sent to relevant local departments for backup, so as to guarantee the requirements of sanitary protection and environmental protection.

5.5 The prediction of noise impact during operation period

After the implementation of the project, there will be no major changes in the strength of noise source and noise control measures, and the status monitoring during the normal operating conditions of the enterprise shows that there is no unattainment within the plant site and this project causes little impact on sound environment.

5.6 The analysis of the environmental impact of solid wastes

After the implementation of the project, the major solid wastes generated by the enterprise (white mud, coal cinders, lime cinders, sludge in waste water station) remain unchanged, and the disposal methods also remain unchanged. The solid wastes generated have been utilized comprehensively and disposed harmlessly and

117 properly, so the solid wastes generated by enterprises do not obviously affect the environment.

5.7 Summary of environmental impact assessment of this project

Based on the above analysis, this technological transformation project belongs to discharge reduction project concerning water pollutants, and the amount of unorganized waste gas emissions will also be reduced, thus the positive environmental benefits are obvious. Under normal operating conditions of this project, the status monitoring indicates that the pollutants discharged during the normal operation of the project result in little impact on the external environment, and there is no regional unattainment of environment standard (including the quality of atmospheric environment, the quality of surface water environment and the quality of sound environment).

The projections indicate that the abnormal discharge caused by this project shows insignificant impact on the water environment of the Dadu River and the functions of regional atmosphere and surface water environment will not be changed. All of the pollution sources discharged by this project cause insignificant impact on the environmental quality of various local environmental elements. 6. Mitigation Measures for Environmental Impact of Project 6.1 Environmental Protection Measures Applied during the

Construction Period Environmental Protection Measures Applied during the Construction Period Flying dust, noise, construction residues and wastewater are produced during the construction period, which impacts the air, sound, surface water and ecological environment. It plans to apply following management and engineering measures.

Management Measures ：：：Include environmental protection during the construction period into contract management; clearly define that the construction party take charge of environmental protection and the property owner responsible for supervision and management. It shall require the Construction Party to include the execution of environmental protection measures into production management system, establish corresponding work system. Meanwhile, environmental protection advertisement for construction team is to be strengthened.

Engineering Measures: 1）Flying dust prevention: ⑴ Watering to reduce dust regularly, install dust prevention cover at main dust raising sites. (2) Remove dust on ground in time.

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2）Noise prevention: the operation of concrete mixing and stirring shall be kept away from the factory boundary. 3）Disposal of construction residues: (1) deliver residues to designated site in time according to requirements of local Environmental Sanitation authority; (2) it shall keep away from ditches for temporary piling, which shall be covered. 4）Construction Waste Water: Construct simple sediment deposition pool at construction waste water outlet to recycle the waste water. 5）Measures on ecological restoration and water & soil conservation: (1) the project occupies a land of 260 mu. It shall protect vegetations when constructing, replant and restore damaged vegetations in time. (2) Remove construction residues in time; (3) Restore land of construction within the boundary in time.

It is estimated that RMB 50,000 Yuan are needed for environmental protection investment during the construction period.

Measure illustration The project is to be constructed within existing premise and do not need to acquire new land. It is analyzed that it can limit and control the three wastes, noise, water and soil losses during construction period at great extent thorough implementing construction management measures. Meanwhile, it can also lower the ecological environment damage and impact of flying dust, noise, waste water and construction residues into minimum extent and limit within a small range through implementing corresponding engineering preventive measures, ecological management and restoration. It can reduce discharge of three wastes of construction and noise greatly by applying above management measures and engineering measures. Meanwhile, it can also save pollution prevention and control expenses. It is feasible to apply environmental protection measures during the construction period.

6.2 Wastewater treatment measures and illustration during operation period Quality of project waste water and treatment measures Cooling black liquor, middle stage waste water and white water are the three main wastewater pollution sources of the project. It treatment different wastewater separately according to the principle of “splitting flow of clean and waste water”, “treating different effluents separately” and “multi-state utilization”. 1. Type of wastewater and treatment measures of the technical reconstruction project Black liquor: Cooling black liquor is a main pollution source of the paper industry, the pollution load of which account for more than 90% of all pulping and papermaking wastewater. Therefore, extract black liquor fully and implement alkali recovery is the most effective way to control pollution for pulp & paper enterprises.

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Alkali recovery is the most feasible way to treat black liquor, which can not only remove more than 90% of water pollution load, but also can recovery caustic soda and heat energy. It can achieve economic benefits. The extraction rate of black liquor does not change much after implementing the technical reconstruction and remains 95%, but the black liquor outlet becomes different (discharge to recovery workshop after utilizing in the cooling stage).

Middle stage waste water: Middle stage waste water mainly comes from bleaching process. Since it applies medium consistency technology through all processes after reconstruction, and use advanced medium consistency ECF instead of chlorine at the bleaching process, middle stage waste water reduces, which can achieve safe discharge after treatment in waste water treatment station and some of it can be reused in process.

Waste water produced by feed preparation: It uses wet feed preparation to replace original dry feed preparation in the project. Therefore it will produce waste water. However, the waste water is the washing water of raw bamboo chips, which contains fewer pollutants and is easy to be treated in the waste water treatment station. In addition, there is no high quality requirement on washing water for bamboo chip. So it can use recycled water after treating in wastewater treatment station to wash. Waste water produced in chlorine dioxide workshop: all of the process water produced during chlorine dioxide preparation enters into chlorine dioxide solution and the byproduct of saturated sodium sulfate solution, which does not discharge out. Waste water produced in chlorine dioxide workshop is cooling water used in the vacuum system (vapor jet pump), which contains fewer pollutants and shall be sent to waste water treatment station for disposal. In addition, it can also mix some recycled water that has been treated in waste water treatment station into the cooling water.

Washing water of flue gas produced during pulping: It adds new treatment facilities for flue gas produced during pulping. It uses recycled water to wash the flue gas and waste washing water shall be sent to waste water treatment station for disposal and reuse again.

See Table 59-61 for the production and disposal of project wastewater. Wastewater produced outside the range of technical reconstruction remains unchanged.

Table 59: Wastewater Production and Disposal within the Range of Technical reconstruction Wastewater Production Main pollutants and Workshop Production rule Disposal and discharge sources and name (m3/d) concentration Pulping Cooling blakc Send for alkali recovery and 2011 COD ：80000mg/l Continuously workshop liquor Cr does not discharge.

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COD ：1000mg/l Bleaching waste Cr 6110 SS ：650mg/l Continuously water AOX ：12mg/l Feed preparation Send to waste water waste water treatment station for disposa. COD ：150mg/l (those discharged 1835 Cr Continuously Some of it can be recycled SS ：500 mg/l out after sediment after disposal and the and clarification) remaining shall be Waste water discharged into Dadu River. Odor containing discharged from 16 sulphur that has been Discontinuously flue gas washing absorbed tower Cooling water of COD ：100mg/l ClO Cr Send to waste water 2 steam ejection 157 Few ClO and Continuously workshop 2 treatment station for disposal pump system methanol Wastewater send to the Total 10129 / / wastewater treatment station: 8102m 3/d

Table 60: Wastewater Production and Disposal of Pulping Workshop before the Technical reconstruction Wastewater Production Main pollutants and Production Workshop sources and Disposal and discharge (m 3/d) concentration rule name cooking Send for alkali recovery and 1377 COD ：80000mg/l Continuously black liquor Cr does not discharge. Send to waste water Pulping treatment station for disposa. middle workshop COD ：1000~1500mg/l Some of it can be recycled stage waste 8797.5 Cr Continuously SS ：650mg/l after disposal and the water remaining shall be discharged into Dadu River. Wastewater send to the total 10174.5 / / wastewater treatment station: 8797.5m 3/d

Table 61: Wastewater Production and Disposal of other Workshop outside the Range of Technical reconstruction Wastewater Production Main pollutants and Workshop sources and Production rule Disposal and discharge (m 3/d) concentration name

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After sending the white water to recycle system for treatment, some of it is recycled for use in Papermaking COD ：200mg/l washing, screening and White water 6194 Cr Continuously workshop SS ：300mg/l bleaching process and the remaining, about 764 t/d, shall be sent to wastewater treatment station for disposal. The light cold wastewater produced after cooking and concentrating shall be reused in washing, screening and bleaching processes directly, and the heavy cold wastewater shall be reused and Alkali Waste discharged to wastewater recovery cooling water 1552 COD ：800mg/l Continuously Cr treatment station after workshop after cooking treating into light cold wastewater through air flotation. Reused light cold wastewater: 176m 3/d ； Cold waste water send to waste water treatment station: 1376m 3/d Membrane filtration and Desalted resin 65 Clear wastewater Discontinuously water station regeneration wastewater Wastewater Boiler room discharged 19 Clear wastewater Continuously Send to waste water by boiler treatment station for disposal Ground

washing 48 COD Cr ：350mg/l Discontinuously Factory water boundary Sanitary 80 COD ：350mg/l Continuously sewage Cr Wastewater send to the total 7958 / / wastewater treatment station: 2352m 3/d Wastewater send to the Total of the all factory after 18088 / / wastewater treatment technical reconstruction station: 10455m 3/d Note: since the amount of black liquor increases after technical reconstruction, the cold waste water produced by alkali recovery also increases.

It is observed from above table that the wastewater send to wastewater treatment station for disposal is 8103 t/d after technical reconstruction in terms of pulping workshop (including the new chlorine dioxide workshop), which reduces 694.5 t/d than before; while in terms of the all factory, total wastewater produced by all sources is

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18088 t/d after technical reconstruction, 10455 t/d of it is sent to waste water treatment station for disposal, which reduces 562 t/d than before.

2. Treatment technology applied in the wastewater treatment station The advanced treatment reconstruction of waste water treatment station in Jinfu Company is underway, which shall be completed soon. The treatment technology applied in the Station is adjusted to 3 levels, i.e. “ABR + Contact Oxidation + advanced treatment by shallow layer air flotation”. See table 59-61 for treatment process of the wastewater treatment station and see table 62 for inflow and outflow.

Table 62: Treatment Conditions of Jinfu Wastewater Treatment Station after Implementing the Project Amount of Ammonia chroma AOX COD BOD SS Status Water Cr 5 nitrogen (dilution mg/L mg/L mg/L mg/L m3/d mg/L factor) Inflow control index 11017 ≤1500 ≤500 / / / 12 8200 Outflow control （reuse ≤90 ≤20 ≤30 ≤8 ≤50 ≤12 index 2250 ） Discharge threshold as stated 60t/t product 90 20 50 8 50 12 in table 2 of GB3544-2008

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Figure 23: Treatment Process of wastewater treatment station of enterprise

Dewateri Crude Waste Regulatin Primary Crude ng Residue residues water g pool sedimentation machine pool Filtrate ABR Pool

Aeration Contact oxidation Filtrate pool

Secondary Sludge concentration pool Sludge Dewatering Facility sedimentation pool

PAM ）PA Collecting pool Filter cake delivery Sludge Sludge Shallow layer air flotation collection Sludge Dewatering Facility pool pool Reused water collection pool Reused water Chemical oxidation pool (for backup) Online monitorying Tail water Discharge into Dadu River

After the technical reconstruction has been completed, the pollutants discharge concentration of various wastewater indexes and water discharge per ton of product of Jinfu Company can meet the discharge threshold requirement for joint production enterprise for paper pulp and papermaking as stated in Table 2 of Discharge Standard of Water Pollutants for Paper Industry (GB3544 - 2008). Reused water treated by the wastewater treatment station is about 2250 t/d in total (account for 22% of the water that has been treated), 1912 t/d of which (account for 85% of the reused water) used for washing bamboo chips and about 48 t/d (account for 2% of the reused water) used for cleaning workshop, and the remaining 290 t/d (account for 13% of the reused water) used as indirect cooling water for chlorine dioxide workshop and flue gas washing water for various workshops.

124 for advanced treatment. However, it requires enterprise improving existing anaerobic unit in wastewater station, increasing pollutants removal rate of the biochemical treatment system and reducing treatment load of advanced treatment unit in wastewater station in this assessment.

Illustration and Analysis on Wastewater Treatment Measures of the Project Since there is large amount of water consumption and waste water discharge in paper mills, and daily waste water discharge is usually above 10,000 m 3, pulp and paper enterprises must apply reliable wastewater management measures to achieve stable safe discharge. It applies a series of comprehensive measures in the wastewater management, and follows the principle of “treating different effluents separately”, “source reduction”, “resource utilization” and “safe discharge”.

Cooking black liquor is a kind of pollutant with heavy pollution, complex components and high concentration of organics. Therefore, it applies evaporation concentration process to increase the concentration and then dispose by burning. It can use steam, a byproduct of alkali furnace, to heat the evaporation concentration process. It can not only recycle resources, but also can reduce pollutants emission from source. Now, alkali recovery facilities have become one of the primary facilities of all paper mills. It is feasible to apply black liquor management measures in the project.

There are few pollutants in the white water and it is most suitable for recycle. It is the key for pulp and paper enterprises to conserve water resources. It applies the technology of “flocculation sediment + shallow layer air flotation” to treat white water separately in the project and reuse the water after treatment, which can utilize water resources and heat resources fully. It is simpler to use “flocculation sediment + shallow layer air flotation” technology than “secondary biochemical treatment” technology. The technology is mature and is broadly applied by pulp and paper enterprises. It is feasible to apply white water management and reuse measures.

Middle process waste water comes from the screening and bleaching operation of pulp washing, screening and bleaching processes, the pollutant load of which is much lower than black liquor, but much higher than white water. It cannot be burned after evaporation concentration (high water content and require high energy consumption), and cannot be reused through simple treatment. While the pollutants concentration of middle stage waste water is within the range required by biochemical treatment. Therefore, it shall construct a wastewater treatment station in the project to apply “secondary biochemical treatment + advanced treatment” technology to treat the middle stage waste water. Meanwhile, it can also treat cold waste water with corresponding pollutants concentration produced by alkali recovery, sanitary sewage and all wastewater discharged by the whole factory.

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It applies shallow layer air flotation technology for advanced treatment in wastewater treatment station and set a primary chemical oxidation as guarantee. It aims to remove COD that is hard to be degraded both through biochemical and physico-chemical way, ensure wastewater discharged by the station can meet the requirement as stated in Table 2 of GB3544-2008, which shall be executed in July 2011, and ensure that wastewater treatment expenses to be controlled within the affordable range of enterprises.

As stated above, the wastewater management measures of project has clear target, the management effect is stable and reliable and the management expenses are reasonable. Therefore, it is feasible to apply the management measures.

Analysis on the generation and reduction of AOX and Dioxin in wastewater discharged by enterprise before and after technical reconstruction. AOX (absorbable organic halogen compounds) refers to total haloid elements (including fluorine, chlorine and bromine) combined in organic compound that can be absorbed by activated carbon under normal conditions (count by chlorine), which is part of total organic halide and a category I pollutants that cannot be avoided in chlorine bleaching process; while dioxin is also PCDDs and PCDFs types of chlorine substances produced by element chlorine and remaining lignin through addition, substitution and replacement reactions during the bleaching process. AOX and Dioxin are both persistent organic pollutants, which are produced accidentally during pulping process. In addition to chlorine used for bleaching, it is also related to the specific chemical structure of lignin. With quite low production, it is hard to test out from surface water and there is little impact on surface water environment.

Chlorine element is the main reason to generate AOX and Dioxin. However, it does not generate organic chloride through reaction between CIO 2 and lignin. Only chlorine element entrained in CIO2 solutions when preparation will result in the generation of few AOX. According to reports, apply CEH chlorine bleaching process that uses older CEF bleaching technology can reduce 75% of AOX generation, thus can further reduce dioxin generation. Therefore, it uses chlorine dioxide D0-EOP-D1 three-stage bleaching technology to replace existing C-E-H-P few chlorine bleaching technology in the project, which can reduce pollutants generation from source effectively, and thus ensure the safe discharge of pollutants and can further reduce impact on surface water environment.

Analysis on preventive measures for ground water pollution of the Project The vadose zone where the project site locates has a high pollution prevention capability. The site belongs to basaltic geologic strata of Mountain Emei (P 2β) with less ground water. The ground water is basalt pore and fracture water, with features of less quantity and slow mobility. The shallowest underground burial depth is 10 m. The ground water flows toward to the west and discharge into Dadu River.

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6.3 Flue gas preventive measures during project operation period Type of flue gas and treatment measures Since the technical reconstruction of this project does not include the main waste gas, i.e. boiler flue gas and alkali furnace burning gas, produced and discharged by pulp and papermaking enterprises, the waste gas produced and discharged in this project are cooking odor, washing, screening and bleaching waste gas, tail gas generated by chlorine dioxide preparation, and flue gas containing sulfur compound unorganized discharged during pulping process.

See following table for the generation and emission of organized waste gas in the project.

Table 63: Waste gas generation and discharge of various workshops within the range of technical reconstruction Source of Workshop waste gas and Main pollutants Main management measures Pollutant discharge name Amount of the waste Dust produced Small amount of gas: 500m 3/h Pulping by prepared dust produced Discharge after dust removal by TSP ：120mg/m 3 workshop material when screening washing. Safe discharge screening bamboo chips through an exhaust funnel of 15m high. Install gas trap cover to collect waste gas discharged from system, and Small amount of send to washing tower for washing organic and Amount of the waste and clarifying, and then discharge inorganic gas: 1500m 3/h through 15 m of exhaust pipe after Cooking odor compound Safe discharge cooling down. containing sulfur through an exhaust Waste gas collection efficiency produced during funnel of 30m high. ＞98% cooking process Washing and clarifying efficiency ≥90% ；

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Install gas trap cover to collect waste gas discharged from system, and Waste gas send to washing tower for washing Small amount of Amount of the waste produced by and clarifying, and then discharge odor produced in gas: 2000m 3/h washing, through 15 m of exhaust pipe after bleaching and Safe discharge screening and cooling down. screening through an exhaust bleaching Waste gas collection process. funnel of 30m high. process efficiency ＞90% ， Washing and clarifying efficiency ≥90% ； Amount of flue The tail gas produced in absorbing Amount of the flue Tail gas gas: 500m 3/h Chlorine tower shall be discharged an exhaust gas: 2000m 3/h produced in The main dioxide funnel of 30m high after being Safe discharge absorption pollutants are few workshop absorbed by water in cooling tank of through an exhaust tower ClO and 2 steam ejection pump. funnel of 30m high. methanol. Note: wasted gases produced in pulping workshop are discharged freely before reconstruction.

Table 64: Waste gas generation and discharge of other workshops outside the range of technical reconstruction Name Source of Main management of the waste gas fuel Pollutant discharge measures unit and name Coal Use limestone to remove Heat value sulfur inside furnace, four 3500kcal/kg, electric-field dust removal Discharge by a 1 50t/h Sulfur content technology to remove dust Amount of the flue an exhaust coal boiler 0.35% and low NOx combustion gas: 77,600 m3/h funnel of 80m Boiler of technology. SO ：335.3 mg/m 3 high. circulating 2 Dust removal efficiency Dust: 82.8mg/m 3 fluid bed ≥99.8% 、 Amount of Desulfuration efficiency pollutants being ≥60% discharged: Amount of the flue SO 2：259.1t/a 225tds/d Apply four electric-field dust Alkali gas: 54,000 m 3/h Dust: 94.8t/a flue gas of Burning material: removal technology furnac Fume dust: 96 NO x：644t/a combustio 55% black liquor Dust removal efficiency e mg/m 3 n furnace ≥99.8% 3 SO 2：106 mg/m Standard as stipulated in time period II in Category II of Emission Standard SO ：900 mg/m 3; fume dust: 200mg/m 3 of Air Pollutants for Coal-Burning Oil- 2 Burning Gas-Fired Boiler Secondary standard as stipulated in 3 3 Emission Standard of Air Pollutants for SO 2：850mg/m ; fume dust: 200mg/m Industrial Kiln And Furnace

It shall be noted that the steam consumption of the whole factory is to be reduced

by 17.9 t/h after project implementation. Meanwhile, it can reduce SO 2 and other pollutions emission obviously.

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Illustration on waste gas management measures 1）the blowing temperature reduces greatly after applying new cooking technology and it does not produce too much cooking odor and washing, screening and bleaching waste gas. Spraying and washing is also an effective way to dispose waste gases, which can reduce free flue gas discharge at the greatest extent. It is feasible to apply these measures. 2）The added pulping waste gas collection and treatment system in this project shall treat most of the odor discharged freely and then achieve safe discharge in an organized way, which can reduce air environment impact at short distance.

Therefore, it is feasible to apply pulping waste gas management measures in the project.

6.4 Measures on solid waste prevention and management during operation period and illustrations of them. It does not produce hazardous waste in the project. There is no change on main solid waste (white mud, ash residues, lime residues, sludge produced in wastewater treatment station) produced by enterprise after implementing the project, and the disposal method also remains the same. Since it can achieve comprehensive utilization and non-hazardous disposal of solid wastes, it is feasible to apply above measures.

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6.5 Noise preventive measures during the operation period and

illustration of it. After the implementation of project, there will no big change on noise sources and noise preventive measures. According to onsite morning at normal operation conditions of enterprise, it does not exceed standard within factory boundary. It is feasible to apply these measures.

6.6 Summary of Environmental Protection Measures

See table 65 for environmental protection measures and investment summary.

It includes the three wastes and noise management measures during operation period, environmental protection measures and risk preventive measures during construction period, which covers all environmental protection requirements of the project in table 9-4.

According to this environmental assessment, it is estimated to need an investment of RMB 1 million on environmental protection. The construction party must prepare enough funds for environmental protection facilities to ensure the fully implementation of above measures.

Table 65: Environmental Protection Measures and Investment of the Project Amount of Time period Category Management measures investment (Unit: 10,000 Yuan) Dust produced by Operation Waste prepared Safety discharge through an exhaust funnel of 15m 5 period gas material high after washing in the washing tower. screening Collect odor produced when cooking and blowing and send to washing and spraying tower for Cooking odor 10 washing, then safe discharge by an exhaust funnel of 30m high. Install waste gas collector at black liquor, knot Waste gas removal of digested pulp, vibrating screen, produced by oxidation removal blowing, vacuum pulp washing washing, machine and concentration machine and various 15 screening and waste gas outlets at washing, screening and bleaching bleaching processes. Send the gases to washing process tower for washing and then safe discharge by an exhaust funnel of 30m high. Tail gas produced in Being absorbed by water in cooling tank of steam absorption Include in main ejection pump first and then discharged by 30 m of tower for investment pipe. chlorine dioxide preparation

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Set a sanitation protection distance of 100 m centering around cooking workshop, evaporation Free discharge of concentration unit for alkali recovery and chemical industrial waste workshop; set a sanitation protection distance of / gas 100 m centering around aeration pool, sludge concentration and pressing workshop of the wastewater treatment station in the factory. Send to alkali recovery unit. Apply “evaporation Include in other Black liquor concentration + burning + causticization ” project investment technology to reduce pollutants from source. Construct “crude residue filtration by inclined screen → inclined-plate sedimentation tank” in preparation process to treat washing water of bamboo chips, reuse most of the washing water Include in main after flocculation clarification and purification. Only investment a small amount of it shall be sent to wastewater treatment station for disposal (i.e. preparation waste Bleaching waste water). water, Send to wastewater treatment station for disposal prepared with cooling water with light pollution produced by material waste cooking for alkali recovery, sanitary sewage and all Include the water, cooling wastewater discharged out of the factory. The tail reconstruction of water produced water can meet requirements as stated in table 2 of wastewater by chlorine Discharge Standard of Water Pollutants for Paper treatment station into Waste dioxide Industry (GB3544 - 2008), which shall be other project water preparation discharged to Dadu River through pipelines; about investment 20% of the tail water shall be reused in preparation and other processes. Improve the existing anaerobic facilities of the wastewater treatment station, increase the removal rate of pollutants in biochemical treatment system, 20 and reduce the treatment load of advanced treatment units of the Station. Utilize the surplus capacity of adjustment pool of wastewater treatment station to collect accidental water; further strengthen and rebuild existing seepage prevention facilities during the technical 20 reconstruction. Apply seepage proofing measures on all pools, pulp Invest in preventive towers, waste water treatment station, water channel and pipelines that measures on may leak, and consolidate the seepage proofing of swerve, bear and groundwater in the insert parts, joints of pipelines and pools. Make record for concealed construction process project. It can prevent ground water pollution effectively. It is feasible to of this project prevent ground water pollution accident through applying above measure General layout; vibration reduction, sound proofing of compressors; Noise vibration reduction of indoor fans, sound proofing of workshops; vibration / reduction, sound proofing of pumps. Industrial White mud and Send to slag field of white mud of enterprise for Has been solid lime residue landfill constructed, use waste existing facilities. Sludge produced in Send out for landfill wastewater treatment station

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Prepared bamboo residues, Send to boiler room for burning screening pulp residues Store sodium chlorate separately, and strengthen management measures according to related safe production requirement. Construct liquid alkali storage tank, methanol storage 25 tank, sulfuric acid storage tank according to related Invest in risk Risk prevention standard, equip with backup storage tank and preventive measures (see table 43 for specific risk delivery pump for the purpose of transferring to safe on chemical raw measures and investment) place in time in case of accident. material added in the Construct an accident pool with a capacity of more project. than 2500m 3 at the wastewater treatment station, which shall be kept empty at usual days to ensure that accidental water shall not be discharged into Dadu river in any form in case of abnormal conditions. It requires in the assessment that it must close down related production units immediately in case of leaking and other production accidents which result Regional environmental in exceeding environmental quality standard within quality assurance an area, apply related measures and cannot resume production until the environmental quality of concerning area meet requirements. Spray to reduce dust, clean ground dust in time; construction at night is strictly forbidden, reuse Preventive measures on wastewater after sedimentation and treatment; green Construction construction wastewater, and protect vegetations in time. To earth up and 10 period flying dust and noise restore vegetations in time after the construction has been completed (including pipelines outside the factory) Total 100

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7. Cleaner production Analysis Promote cleaner production and implement sustainable development strategy is the basic guiding principle for economic construction in the country. It is also the basic principle and essential task for industrial pollution prevention. The nature of cleaner production is to apply new process, new technology insistently, transform raw materials into product at the greatest extent through the control of production process and reasonable allocation of resources and energy, eliminate pollution at the production process, and thus achieve the target of energy conservation, consumption reduction, pollution reduction and efficiency increase, and realize harmonized development between economic construction and environmental protection.

It applies technical reconstruction of pulping system on cleaner production as suggested in “Environmental Assessment Report on the Construction of 52,000 t/a Paper Pulp and 57,000 t/a Paper Products Project and Supporting Project”.

7.1 Clean features of the process It is an upgrade technical reconstruction project for pulping. The pulp and papermaking technology of Jinfu Company shall reach an advanced level within domestic non-wood pulp and papermaking field after the completion of this project and ongoing energy-saving and technical reconstruction project. The reconstruction include DDS TM substitution cooking technology with low energy consumption, oxygen delignification technology with medium concentration, knot removal system with medium concentration and closed screening technology with medium concentration, chlorine dioxide bleaching technology with medium concentration (D 0- EOP-D1 three-stage bleaching technology), chlorine dioxide preparation system in R8 method, medium pressure alkali furnace with low odor, five part/five effect tubesheet evaporation concentration technology, medium pressure boiler of circulating fluidized bed. It can reduce pollutants generation from source, save resources, lower energy consumption and conforms to the requirement on cleaner production.

7.2 Analysis on cleaner production level Since it applies different raw materials and production technologies for pulping and papermaking, there is obvious difference in energy consumption, pollution load and pollution emission at end. It issues part of cleaner productions standards by State Environmental Protection Administration according to different raw materials and production processes. At present, those issued cleaner production standards involve bleached soda straw pulp, bleached Kraft Eucalyptus Pulp, unbleached kraft pulp and bleached alkali bagasse pulp, but does not include bleached sulphate bamboo pulp used in this project.

Among those issued cleaner production standards, the requirements as stated in Cleaner production Standard for Bleached Kraft Pulp are the strictest. Therefore, it selects this Standard (HJ/T340-2007) and combines requirements on the reference value of bleached bamboo pulp as stated in Cleaner Production Standard Index

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System for Pulp & Papermaking (on trial) to analyze the cleaner production level of this project in the assessment. See table 66 for specific indexes.

Table 66: Comparison between cleaner production level of the whole factory and cleaner production standard on bleached kraft pulp after technical reconstruction The enterprise Before Indexes Level I Level II Level III After technical assessment technical reconstruction reconstruction I. production process and equipment requirements Wet feed preparation, 1. Feed Chipping through dry method, utilize the Dry feed Level I utilize the preparation washing water circularly. preparation (Level III) washing water circularly. Batch cooking Continuously cooking or batch cooking with low 2. Cooking Globe cooking with low energy Level II energy consumption consumption adverse Adverse current 3. Washing Multistage adverse current washing current washing with Level I washing high efficiency Enclosed Improved Enclosed Pressure Pressure Level I 4. Screening pressure traditional pressure screening screening (Level II) screening screening screening Oxygen delignification, Multistage Oxygen ECF bleaching delignification, Multistage bleaching or with ECF Oxygen ECF bleaching with Level I 5. Bleaching to multistage or H 2O2 delignification, bleaching, or H2O2 substitute (Level III) bleach with substitute ECF bleaching TCF part of chlorine CIO to part of bleaching 2 substitute part chlorine of chlorine There are Falling film complete There are evaporator, Falling film evaporator, supporting complete combustion combustion furnace with low odor, facilities supporting 6. Alkali furnace with low Level I pre-hanging filter, heat and power for alkali facilities for recovery odor, pre- (Level III) cogeneration, turpentine oil, tall oil recovery alkali recovery hanging filter, recovery. facilities, facilities, which heat and power which run run normally. cogeneration normally.

II. Resources and energy utilization indexes

1. water intake, Level II ≤50 ≤70 ≤90 78 60.4 m3/t air-dry pulp (Level III) 2. Comprehensive energy consumption ≤500 ≤550 ≤650 685 645 Level III (outsourced energy), Kg standard coal/t air-dry

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pulp 3. Fiber material (absolute dried) consumption ≤2.25 ≤2.35 ≤2.45 2.35 2.3 Level II (wood and chip without bark ) t/t air dry pulp III. Pollutants generation indexes (before end treatment) 1. wastewater ≤45 ≤60 ≤80 Level II load, m 3/t air 72 68.4 dry pulp 2.COD Cr kg/t ≤55 ≤70 ≤100 Level II air dry pulp 79.5 70

3.BOD 5kg/t ≤20 ≤25 ≤35 Level II air dry pulp 26.5 25

4.SS kg/t air ≤15 ≤20 ≤25 Level III dry pulp 25 25

5.AOX kg/t Level I ≤1.0 ≤2.0 ≤2.6 2.5 0.8 air dry pulp (Level III) IV. Resources comprehensive utilization indexes 1. water Level I recycling rate, ≥85 ≥82 ≥80 80 86 (Level III) % 2. Black liquor ≥99 ≥96 ≥95 Level II extraction 95 97 (Level III) rate, % 3. Alkali ≥97 ≥95 ≥92 Level III recovery rate, 92 94 %

See the following table for cleaner production level and related indexes as stated in the Cleaner Production Standard Index System for Pulp & Papermaking (on trial) before and after technical reconstruction.

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Table 67: Comparison between the Project and the Cleaner Production Standard Index System for Pulp & Papermaking (on trial) Reference value of qualitative assessment index of bleached wood The enterprise (bamboo) pulp as stated in Cleaner P roduction Standard Index System for Pulp & Papermaking (on trial) Reference value Before After Index of Level I Index of Level II Unit of the technical technical assessment reconstruction reconstruction Wood Water intake m3/ Adt 90 78 60.4 bamboo 2.35 wood Commonly (wood without / / pulp used fiber Absolute bark) (1) Resources materials dry t/ Adt and energy bamboo consumption 2.35 2.35 2.3 consumption pulp index Comprehensive wood 550 / / energy consumption bamboo kgce/ Adt 650 685 645 (outsourced pulp energy),

wood 95 / / Alkali recovery pulp (2) production % rate bamboo technology 93 92 94 pulp indicator Heat efficiency of alkali % 65 63 68 furnace White mud wood 90 / / comprehensive pulp % utilization rate bamboo 60 0 0 pulp Recycling rate of water % 80 80 86 (3) resources Comprehensive utilization comprehensive rate of ash residues % 100 100 100 utilization index produced by boiler

Comprehensive utilization rate of preparation % 100 100 100 residues (refers to wood chips) Wastewater discharge m3/ Adt 80 78 60.4 (4) Pollutants COD Cr discharge kg/Adt 80 79.5 70 generation BOD discharge index 5 kg/Adt 28 26.5 25 SS discharge kg/Adt 35 25 25

It is observed from table 66 and 67 that the cleaner production level of enterprise has improved a lot before and after the technical reconstruction. Comparing with the strictest standard as stated in Cleaner Production Standard on Bleached Kraft Wood

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Pulp , the production technology and equipment has reached Level I after reconstruction; and has achieved a standard above Level II in resources and energy utilization, pollutants generation and comprehensive resources utilization. In view of applying different raw materials (it can be observed from the quantitative assessment index in Cleaner Production Standard Index System for Pulp & Papermaking that there is a level gap between the cleaner production level of wood pulp and bamboo pulp), the technology applied by the Company shall take the lead within the country after reconstruction. And it can reflect cleaner production principle better in the project.

7.3 Implement the ways and suggestions for cleaner production further It has reduced energy consumption for production on the basis of existing capacity to the greatest extent, increased recycling rate of water and reduced wastewater discharge in the Project. However, it shall also develop ways for comprehensive white mud utilization and implement cleaner production further in enterprise.

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8. Safe discharge and total quantity control of the Project 8.1 Analysis on Safe Discharge of the Project Current Emission Standard In the project, it applies emission standard on discharged wastewater as stated in table 2 Emission Standard for Joint Venture of Pulp & Paper-making in Discharge Standard of Water Pollutants for Pulp and Paper Industry (GB3544-2008); time period II standard in Category II on boiler flue gas as stated in Emission Standard of Air Pollutants for Boilers (GB 13271-2001) ; standard of level II on alkali furnace flue gas as stated in Emission Standard of Air Pollutants for Industrial Kiln and Furnace (GB9078-1996). See the following table for details.

Table 68: Standard on discharged wastewater of the Project (B3544-2008) Unit: mg/L Amm Water Total Total Discharge onia Chrom dischar pH COD BOD SS Phosp nitro AOX standard Cr 5 nitrog a ge hor gen en GB3544- ≤60 6~9 ≤90 ≤20 ≤30 ≤8 ≤0.8 ≤12 ≤50 ≤12 2008

Note: at above standards, t here is no dimensions for pH, the unit of water discharge is t/t of product (pulp).

Table 69: Table 8-2: Standard on Boiler Flue Gas Discharge in the Project

Discharge standard and Discharge Discharge Pollution factor Unit No. of it parameters Threshold

Flying dust Discharge mg/Nm 3 200 Standard of Time period II in Concentration Discharge 3 2001 SO 2 mg/Nm 900 Concentration

Table 8-3: Standard on alkali flue gas discharge of the Project Discharge standard and No. Pollution Discharge Unit Discharge of it factor Parameters Threshhold Flying dust Discharge mg/Nm 3 200 Level II Standard in GB9078- Concentration Discharge 3 1996 SO 2 mg/Nm 850 Concentration

Related requirements and indexes as stated in “Environment, Safety and Health Guidelines” of the World Bank Group The project targets at non-wood pulp papermaking enterprises. See the following table for pollutants discharge standard as required by “Environment, Safety and Health Guidelines” of the World Bank Group.

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Table 70: Discharge Standard as required in “Environment, Safety and Health Guidelines” of the World Bank Group Guiding Domestic Discharge of this Parameters Unit rules Standard Project Guiding rules for 3 60 （absolute 54 （Air dry Flow a m /t （AD ） 50 wastewater dry pulp ） pulp ） management of pulp & pH / 6～9 6~9 6~9 papermaking TSS kg/t （AD ） 2.0 1.8 1.8 factory in COD kg/t （AD ） 30 5.4 5.4 Table B1 (1): BOD 5 kg/t （AD ） 2.0 1.2 1.2 fiber preparation, Total kg/t （AD ） 0.5 0.72 0.72 non-wood nitrogen fiber Total kg/t （AD ） 0.05 0.05 0.05 phosphor

Analysis on Safe Discharge of Enterprise According to project analysis in Chapter 2 and measures illustration in Chapter 6, the main pollutants discharge and disposal of Jinfu Company before and after technical reconstruction are as follows.

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Table 71: Generation and predicted discharge of main pollutants of enterprise

Source Concentration before disposal and Discharge Concentration and Type Name of pollutants (No.) amount (unit) amount (unit) Unit mg/Nm 3 kg/h t/a mg/Nm 3 kg/h t/a

Flue gas 13.2 Nm 3/h 107712 Nm 3/a discharge G1 Coal-fire boiler and alkali recovery 106~ furnace (it does not include in this SO 2 31.75 259.1 240.5 31.75 259.1 project) 335.3 Nitric oxide 616.3 81.4 664 616.3 81.4 664 41~47g/m Flying dust 3 5810 47400 90 11.6 94.8

Discharge by exhaust funnel of 15 m high after dust absorbing treatment in Flying dust produced by feed 3 G2 washing tower. Discharged waste gas: 500m /h, TSP Discharge preparation screening 3 Air Concentration is 120mg/m . pollutant Apply super displacement cooking and cold blow technology with low energy s consumption, which suppresses odor; install gas trap cover to collect waste gas discharged from system, and send to washing tower for washing and G3 Cooking odor clarifying, and then discharge safely. Waste gas collection efficiency 98%; Washing and clarifying efficiency ≥90%; discharged waste gas: 1500m 3/h; height of exhaust funnel: 30m. Install gas trap cover to collect waste gas discharged from system, and send Washing, screening and bleaching to washing tower for washing and clarifying, and then discharge safely. G4 waste gas Waste gas collection efficiency 90%; Washing and clarifying efficiency ≥90%; height of exhaust funnel: 30m. Amount of waste gas: 500m 3/h, main component: CO and water vapor, Chlorine dioxide preparation: tail 2 G5 small amount of ClO and methanol. The cooling water shall be discharged gas of absorption tower 2 safely by exhaust funnel of 30 m high after being sprayed and absorbed. W1 Black liquor Amount of waste liquor: 2011t/d, send for alkali recovery, do not discharge. White water of papermaking Amount of waste water: 6194t/d, most of the waster shall be reused after W2 workshop disposal, about 764t/d shall be sent to wastewater treatment station for (it does not include in this project) disposal. Q11017 m 3/d 3,746,000m 3/a Comprehensive waste water 3 3 Water 2250m /d shall be reused for washing Q8200m /d (including bleaching wastewater, 3 bamboo chips and in other processes 278.8 m /a pollutant prepation wastewater, cooling after treatment. s water discharged after spraying Indicator mg/l t/a mg/l t/a W3 and cooking from chlorine dioxide COD 500 1873 90 250.9 workshop, white water that cannot cr be reused, sanitary sewage, BOD 5 200 750 20 55.8 discharge water from desalted Ammonia nitrogen 20 75 8 22.3 water station ) SS 125 470 30 83.6

Bamboo chips when preparing Feed preparation S1 t/a 5720 Boiler combustion feed process

Washing, Solid S2 Knot residues when removing knot screening and t/a 1600 Returned for cooking waste bleaching process Washing, S3 Screening residues screening and t/a 1060 Boiler combustion bleaching process Waste water S4 sludge t/a 2000 Deliver for landfill treatment station Main noise source in this project is pump, pulp machine, air compressor, vacuum pump etc. The noise intensity is about 80 95 db. There is no obvious change in noise intensity before and after the technical reconstruction. The construction Noise included in the reconstruction locates in the middle of the factory. Noise at boundary shall meet the requirement on noise threshold of industrial enterprises of “Category 2 of sound environment functional area outside the boundary” as stated in Emission Standard for Industrial Enterprises noise at Boundary (GB12348-2008).

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It is observed from above table that it has achieved safe discharge in enterprise.

According to comparative analysis on standard as stated in table 70 and domestic standard, the discharge thresholds applied in the country by enterprise is stricter than those required in “Guidelines” except water discharge per ton of product and total nitrogen. In addition, the water discharge per ton of product required in the “Guidelines” does not include cooling water and other clean sewage. While it include all types of water discharged by enterprise in domestic discharge standard. Therefore, the thresholds required by two standards are about the same in terms of discharged water per ton of product.

In conclusion, the discharge standard applied by Jinfu Company on pollutants after project implementation is stricter than that required in “Environment, Safety and Health Guidelines” of the World Bank Group, which has less pollution impact on external environment.

8.2 Plan for Total Amount Control of Enterprise Analysis on Total Amount Control for Pollutants Discharge after Project Implementation See table 72 for total pollutants discharge when achieving safe discharge in project.

Table 72: Main Pollutants Discharge of Jinfu Company after Project Implementation Total pollutants index Remark discharge

COD 250.9t/a Wastewater Pollutants discharge of this NH 3-N 22.3t/a project Dust 0.5t/a

SO 2 259.1t/a Pollutants Waste gas Fume 94.8t/a discharge of ongoing project of NO x 644t/a enterprise

Index source of total pollutants of enterprise It has defined index for total amount of pollutants by local environmental protection authority in previous environmental assessment. It shall apply measures to reduce emission further after implementing the technical reconstruction. The pollutants discharge of the Company has been controlled within the index range of total pollutants required by local environmental protection authority except nitric oxide. Nitric oxide is a kind of pollutants newly added in “the 12th Five-Year Plan” that should be controlled in total amount. The total amount index of it can be regulated by local environmental protection authority directly. In conclusion, it has regulated total amount index for the

141 enterprise by local environmental protection authority. Therefore, the project meets requirement on total amount control.

9．Environmental Risk Assessment

It aims at, through environmental risk assessment, analyzing and predicting potential danger, adverse factor, sudden incident or accident that may happen during project construction and operation (it does not include artificial damages and natural

142 disasters generally) abnormal situations that may lead to leakage of toxic, hazardous, inflammable and explosive substances, proposing reasonable and feasible prevention, emergency and alleviating measures to control accident rate, damage and environmental impact within acceptable level. It focuses on the impact of accident on environment outside the boundary in environmental risk assessment.

9.1 Identification for Major Hazard Sources Jinfu Company has passed environmental acceptance check. Corresponding risk prevention measures have been applied for processes using hazardous chemical like liquid chlorine, hydrogen peroxide, liquid alkali storage, bleaching, alkali recovery, and sewage treatment, such as deploying stand-by storage tank, building coffer and emergency pool for wastewater accident. Emergency response plan has been established for accident, strict operation procedures and emergency running program.

Chlorine gas (highly toxic) is not to be used any more after technical reconstruction. A major danger source, liquid chlorine reservoir, is to be eliminated, and environmental risk is thus to be reduced. The following chemicals shall be used after technical reconstruction: 1% of chlorine dioxide solution, sodium chlorate, methanol, liquid caustic soda, vitriol and hydrogen peroxide. 1% of chlorine dioxide solution, sodium chlorate, methanol, and vitriol are firstly applied in the project, which are not highly toxic and does not have major danger.

9.2 Features of major industrial chemicals used in the project

It shall not use chlorine gas, which is highly toxic, any more after technical reconstruction. 1）Caustic soda (NaOH): white opaque solid, easy deliquescent with a melting point of 318.4 , boiling point of 1390 , water soluble, a strong base.

2Sodium sulfide (Na 2S): colorless or yellow crystal particle. Industrial product is red brown or brownish red bulk with a melting point of 1180 , water soluble, a strong base. 3chlorine dioxide: reddish yellow gas with strong irritating odor, with a portion of 3.09 g/l (11 ), melting point of -59.5 , boiling point of 9.9 (at a pressure of 731mmHg), condensate into reddish brown liquid at 11 , orange red crystal at -59 , explosive when exceeding a volume concentration of 10% in air, but non-dangerous in water solution. The World Health Organization (WHO) and World Food Organization (FAO) have listed chlorine dioxide as a highly efficient safe disinfectant in Category A1. Chlorine dioxide has been widely applied in advanced European and American countries to replace chlorine gas for drinking water infection in order to control “three kinds of substances (substances leads to carcinogenesis, teratogenesis and mutagenesis)”. 4sodium chlorate: colorless and odorless crystal, salty and cold, deliquescent with a melting point of 248~261 , water soluble, sparingly soluble in ethanol.

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LD50 1200 mg/kg (oral intake of rats); sodium chlorate is a strong oxidant, explosive when being heated strongly or contacting with strong acid.

5Methanol: molecular formula: CH 3OH, molecular weight: 32.04. It is colorless, transparent, easy volatile and flammable liquid at normal temperature and pressure, with a melting point of -93.9 and boiling point of 65 , a flashing point of 8, a relative density of 0.7914(20/4 ), slight alcoholic odor, can mix with water and various organic solvent; toxic and can lead to blind, death after drinking, which is strictly forbidden to drink; LD 50 (oral intake of rats) 5628 mg /kg, LC 50 82776mg/kg, four hours (intake); flammable, it can form explosive compound by mixing its steam with air. 6) vitriol: colorless, odorless and transparent oily liquid, can mix with water, with a molecular weight of 98, melting point of 10.5 ）, boiling point of 330 ）, relative density of 1.83 (water = 1), 3.4 (air = 1), saturated steam pressure of 0.13Kpa, LD 50 2140mg/kg (oral intake of rats), LC 50 510mg/kg, 2 hours (oral intake of rats).

9.3 Identification of the Maximum Credible Accident and

Environmental Risk Analysis As a precondition for safe discharge of wastewater after treatment, the black liquor is sent for alkali recovery. Whether the black liquor storage, collection and transport system is perfect or not impacts the quality of integrated wastewater. If the black liquor storage tank and cooking liquor used in this project becomes flooding or leak, black liquor and cooking liquor will enter the integrated water, thus lead to risk accidents of wastewater deterioration in wastewater station, wastewater treatment efficiency reduction, and unsafe discharge of wastewater into environment.

Therefore, main risk accidents of this project shows as leakage of cooking liquor and black liquor storage tank in cooking process, which lead to quality deterioration of wastewater entering into the wastewater treatment station, thus produce environmental pollution due to unqualified wastewater treatment.

9.4 Prevention measures on environmental risk

According to accidental burst, ooze, drip, leak that may happen in production and construction items of the Project, it requires enterprise to construct emergency storage devices (containers) at storage tank area of cooking process, such as storage tank or storage pool, and built curb and collection system around storage tank. In case of tank damage, materials contained in tank should be transferred into emergency tank in time, and pump leaked materials into standby storage tank.

Check automatic control instruments and system periodically to assure normal operation of system.

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Prevention measures on environmental risks applied by enterprise in production process, storage and usage of hazardous chemicals.

Table 73: Prevention measures on risk accidents of the Project Investment (Unit: No. Risk prevention measures 10,000 Yuan)

Construct sodium chlorate warehouse, strengthen management measures 5 1 according to related safety production requirements (New construction)

3 Install monitoring, detection, alarming, interlocking and other instruments in 2 (Reconstruct existing processing equipment and pipes using toxic and hazardous substances. facilities)

Establish safety production system, emergency response plan and practice 3 Established already periodically.

Deploy personal protective equipment: deploy gas mask at processes using 2 4 toxic and hazardous substances. (New Investment ) Coffer and curb: build coffer, curb and collection pump for leaking materials 5 around storage tanks of liquid caustic soda, vitriol, chlorine dioxide, 2 (New construction) methanol. Standby tank: standby for storage of liquid caustic soda, vitriol, chlorine 10 (New 6 dioxide, methanol, black liquor. construction) Install water spraying system above methanol storage tank to cool at 7 1 (New construction) summer. Install water spraying system for accident above chlorine dioxide preparation 8 1 (New construction) system. Equip with accident blow-pit for reactor of chlorine dioxide preparation 0.5 (New 9 system. construction)

Build trench and accidental leakage intercepting system around chlorine 0.5 (New 10 dioxide workshop. construction) Construct an accident pool with a capacity more than 2500m 3, which shall be 20 (New 11 kept empty at usual to ensure accidental wastewater not discharge into Dadu construction) River in any form at abnormal conditions. Total 45

9.5 Emergency plan for risk accident

Regardless of how careful the prevention is, it is hard to eliminate risk accident. It aims, through establishing emergency plan for risk accident, to reduce accidental losses to the minimum rapidly and effectively. The emergency plan follows the following principles.

1) Set up special safety mechanism, establish strict safety regulations for operation and strengthen safety supervision and management; 2) Equip with necessary disaster protective equipment; 3) Establish interlock protection process to stop production or dose control and automatic alarm in case of emergency in production system;

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4) Establish rescue organization, team and contact. Provide job training and exercise periodically, establish learning manual, report, record and assessment for emergency response; 5) Establish regional disaster prevention and rescue plan, strengthen contact with local government, fire protection, environmental protection and medical assistance authorities in order to rescue in time in case of risk accident; 6) In case of major, catastrophic air or water body pollution, the pollution to ambient environment (including ambient air quality and Dadu River) and recovery status is to be monitored through the coordination between enterprise and municipal, district environmental monitoring stations. Pollution trend and pollution range are to be traced and monitored; monitoring data is to be reported to the command for emergency rescue and superior environmental monitoring center. See table 74 for environmental monitoring plan for emergency accident.

Table 74: Emergency Environmental Monitoring Plan Monitoring sites Monitoring items Monitoring Type frequency Location Direction ClO 2 leakage Black liquor leakage

At boundary NW and SE boundary Residents around the NNW S~100m boundary Changzhen, N4.0km Ambient Fulu town ClO / 1/hour air The Central 2 School of W0.40km Niushizhen Changzhen, S4.5km Tongci Niushi Town W0.4km 500m distance at downstream of project Fulu Town sewage discharge SS CODcr BOD , Surface outlet 5 / ammonia nitrogen, 1/1hour water 10km distance at Shawan chroma downstream of project Power sewage discharge Station outlet

Note: except above fixed monitoring point, increase an air monitoring point at the closest household (resident) at downwind when accident happens. Monitoring factors are to be determined according to the type of accident.

9.6 Conclusion of Risk Assessment

In conclusion, liquid chlorine gas is not to be used any more after project implementation. The hidden environmental risk of enterprise is to be decreased

146 greatly, and risk accident impact to be reduced by eliminating this major danger source. Main risk accidents of this project shows as leakage of cooking liquor and black liquor storage tank in cooking process, which leads to environmental pollution. Therefore, build coffer, curb and collecting pump for leakage materials around storage tank to minimize leakage accident risk. Meanwhile, strengthen management and establish emergency treatment mechanism. The environmental risk prevention measures of project are valid by applying above safety measures.

In short, there are environmental risks, but chemicals used after technical reconstruction is less danger than liquid chlorine used before, which reduces hidden environmental risks of enterprise fundamentally. The risk control measures applied in project are reliable, environmental risks are acceptable and it is feasible to implement the Project in terms of environmental risk management.

10 Economic Cost-benefit of Environmental Impact 10.1 Economic Benefit Analysis The product scale of the project is 52 thousand tons of pulp annually with the total investment of 94931.8 thousand RMB. The project will bring good economic benefit, and refer to table 10-1 for the main economic indicators.

Table 75: Main economic indicators of project

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No. Item Unit Amount Note 10 Thousand 94931.8 1 Total investment RMB thousand 10 Thousand 26000RMB 0 2 Average annual revenue RMB Thousand RMB 3 Average annual cost 10 Thousand 21970 0 RMB Thousand 4 Total annual profit 10 Thousand 4030 0 RMB Thousand 5 Annual profit after tax 10 Thousand 2652 RMB Thousand 10 Thousand 1378 0 6 Annual tax RMB Thousand RMB 7 Return on investment % 10.2% profit and tax investment 8 % 15.5% ratio period for recovery of Constructio 9 Year 9.5 investment n period excluded 10 Ratio of investment to % 16.12% output

It can be seen from the above table that the ratio of investment to output is 16.12, indicating good financial position of the project. Meanwhile, enterprise is able to invest sufficient fund in pollution treatment and resource recycling, thus the project will bring notable positive effect in terms of economy.

10.2 Social Benefit Analysis 1) The operation of this project has no adverse impact on local social environment, lives of local people and all types of activities. 2) The project can contribute tax of 13780 thousand RMB each year, which will play its due role in local economic development. In addition, the project will add hundreds of jobs and will be helpful to the stability of social order. 3) The project leads the development of related industries, particularly it will accelerate the local and adjacent farmers becoming rich through planting bamboo, increase local financial revenue, advancing local economic development and improve people’s living standard. 4) The project will also increase percentage of forest cover by planting bamboos on barren mountains and land, shrub-land and non-forest land, thus to play active role in reducing surface runoff, conserving water sources and treating water and soil loss

10.3 Cost-benefit Analysis

Investment in environmental protection The total investment of the project is 94931.8 thousand RMB with 1000 thousand RMB invested in environmental protection, accounting for 1% of total

148 investment. Thus the investment is able to meet the demand for fund of environmental protection.

Losses caused by project construction The impacts of this project on environment are mainly from waste gas, waste water, solid water and noise, etc generated by the project. In order to eliminate the impact, 1000 thousand RMB is needed accordingly. In addition, another 500 thousand RMB is needed annually for the operation of environmental measures.

Economic cost-benefit analysis on project’s environmental impact This project will bring good social and economic benefit, as well as localized and small loss to environment, and part environmental losses are compensable. In conclusion, this project is feasible in terms of environmental cost-benefit, taking into consideration of environment, society and economy.

11 Public Participation 11.1 Purpose and Role Any project will bring good or adverse impact on ambient natural and social environment from its plan, design, construction to operation, and directly or indirectly influence the living, work, study, rest and entertainment of local people. These people are direct or indirect beneficiaries or sufferers of the project, thus their participation

149 will compliment potential leaks or neglects in environmental evaluation, and their suggestions and ideas will make project plan and design more complete and reasonable, make environmental protection measures more realistic, and eventually make project bring more environmental, social and economic benefits.

More people will understand the significance of proposed project and environmental problems through public participation, and to gain public support and understanding, while will be also helpful to the success of project. Moreover, public participation will promote public environmental awareness, actively participation in environmental protection.

11.2 Methods and Principles The public participation will conducted in accordance with relevant requirements in “Notice on Printing and Issuing of Temporary Measures of the Public Participation in Environmental Impact Assessment” Huan Fa [2006] No.28 issued by the State Environmental Protection Administration. The public participation survey uses the types of issuing survey forms and organizing public opinion investigating meetings (refer to annex XXX), as well as publishing information concerning this project to public on internet.

The surveys follow the principles of combing representativeness and randomness. Representativeness means that the respondents are from everywhere with certain percentage. While randomness means that the selection of respondents shall have the characteristic of random sampling in statistics. Respondents are selected from people of fixed sample types. The selection of respondents shall be equal opportunity for all and fair, without the personal subjective ideas of investigator.

The information is published on http://www.shawan.gov.cn/ for two times, the first time for publishing is from May 10 th to 26 th 2011, and the second time for published is from May 28 th to June 15 th 2011.

The design of survey forms firstly selects the most concerned issues as survey content. And secondly in order to save the time of respondents I writing and convenient statistics, the questions are mainly choice questions, which respondents need to tick “ √”. Refer to table 76 for sample of survey forms.

In addition, during the project environmental evaluation period and when environmental evaluation was basically finished, Jinfu held two symposiums with surrounding residents on environmental protection in June and September 2011 respectively. The first symposium was held at village committee of Shawan’er with representatives from surrounding residents, enterprise, environmental evaluation agency and member of village committee of Shawan’er. The second symposium was held at the office of Jinfu. At the second symposium, through communication and

150 explanation with surrounding residents, all participants showed support to this project. Refer to annex VI for Attendance sheet and explanation for symposiums.

Table 76: Public participation survey form on environmental protection of project construction Pulp making system technology upgrading project of Sichuan Jinfu Paper Co., Ltd Project summary: This technology upgrading project is conducted in the existing plant of Jinfu located at Tangjiawan, Fulu Town, Leshan city. The pulp and paper making capability of the enterprise will maintain at 52 thousand tons per year after upgrading. The core content of this technology upgrading is to upgrade and renovate current pulp techniques: replacing current pulp-cooking of cooking-ball system with low energy consumption Intermittent Displacement Digester System; replacing current CEHP bleaching system with chlorine dioxide bleaching system and constructing a new oxygen delignification device and a 4t/d chlorine dioxide preparation system. After upgrading, the waste water discharged by the enterprise will be reduced significantly, ensuring that the waste water discharged by the enterprise meet the requirements of national discharge standard entering into practice in July 2011. Meanwhile, the waste gas discharged during pulp making process will also be reduced, reducing the impact of disorganized waste gas on ambient air. In summary, after the conduction, on the basis of realizing discharge meeting the standard, Jinfu will further reduce discharge amount of pollutant, and product energy consumption, which will bring notable environmental positive benefit. In order to understand the requirements, hopes and suggestions of people to this project, make project construction more complete, minimum the potential impact of project construction and bring maximum economic, environmental and social benefits, this public survey is conducted. Name: occupation: working unit or address: education background: The attitude of you (the enterprise you serves)to this project Support □ oppose □ does not matter □ The impact of this project on your (the enterprise you serves) Production positive impact □ negative impact □ tolerable negative impact □ no impact □ Living positive impact □ negative impact □ tolerable negative impact □ no impact □ Working positive impact □ negative impact □ tolerable negative impact □ no impact □ Study positive impact □ negative impact □ tolerable negative impact □ no impact □ The impact this project on ambient residents positive impact □ negative impact □ tolerable negative impact □ no impact □

The impact of this project on local environment positive impact □ negative impact □ tolerable negative impact □ no impact □

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The impact of this project on local economic development positive impact □ negative impact □ tolerable negative impact □ no impact □

Other opinions and suggestions: including opinions and suggestions on residents relocation (attach another papers if needed) Note: please tick “ √” in □ to show your attitude.

11.3 Survey results • The composition of respondents for the survey forms The respondents for the survey forms are mainly farmers from ambient villages and Fulu Town and Niushi Town, Chang Town. The survey is conducted according to the proposed content in the forms. Altogether 110 forms were issued and 100 are returned, with the return rate reaching 90%. Refer to table 77 for the composition of respondents.

Table 77: occupation and education background composition of public respondents Occupation Cadre Worker Villager Other total Number of 1 70 29 0 100 people percentage ）%） 1 70 29 / 100 Senior high Elementary Total Junior school and school Education collage secondary junior high background and school school above vocational diploma Number of 8 100 2 17 73 people percentage ）%） 2 17 73 8 100

It can be seen from the above table that during this survey, the survey forms are issued randomly, and the occupation and education background were not known in advance. Thus the composition of the occupation and education background shows the characteristics of inhomogeneity. Since the project is located at countryside, the influenced people are workers and farmers; therefore, their education background is low. However, this reflect the well-targeted respondents, the survey results truly reflect the opinions of influenced people. Among these respondents, cadre accounts for 1%, worker accounts for 70% and villager accounts for 29%, In terms of education background, Junior college and above accounts for 2%, senior high school accounts

152 for 17%, junior high school accounts for 73% and elementary school accounts for 8%. This type of composition fully reflects the opinions of public to the environmental impact issue of this project and the participation awareness in environmental evaluation in terms of number, scope and education background.

• Results and analysis of survey forms statistics Refer to table 49 for results of survey forms statistics. The survey results show there are respectively 2 and 10 people believe that the this project will impose tolerable negative impact to their production and living, accounting for 2%, 10.4% respectively. And there are 2 and 76 people believe that this project will impose no impact to their production and living, accounting for 4.2%, 79.2% respectively. No one believes that this project will impose negative impact to their production and living. When investigating the impact of the construction of this project on their work and study, 71 people believe that no impact is imposed, accounting for 74%. 14 people believe that positive impact is imposed on ambient resident, and 7 people believe that tolerable negative impact is imposed, accounting for 14.6% and 7.3% respectively, the other all believe no impact is imposed. As of the impact of this project on local environment, 27 people believe that tolerable negative impact is imposed, accounting for 28%, and the other 9 people believe no impact is imposed. 92 people believe that this project will impose positive impact to local economy, accounting for 96% and no one believe that negative impact is imposed.

In accordance with survey results, 96 people support this project, accounting for 96%, and 4 people believe that it does nor matter, no one oppose this project, which indicate that this project is in line with people’s hope.

Table 78: Public participation and survey results The attitude to this project (people) Support 96 oppose 0 does not matter 4

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The impact of construction of this project on your (people) Production positive impact 92 negative impact 0 tolerable negative impact 2 no impact 2 Living positive impact 10 negative impact 0 tolerable negative impact 10 no impact 76 Working positive impact 10 negative impact 0 tolerable negative impact 15 no impact 71 Study positive impact 0 negative impact 0 tolerable negative impact 12 no impact 84 The impact of construction of this project on relocated people positive impact 76 negative impact 0 tolerable negative impact 20 no impact 0

The impact construction of this project on ambient residents positive impact 14 negative impact 0 tolerable negative impact 7 no impact 75

The impact of this project on local environment positive impact 60 negative impact 0 tolerable negative impact 27 no impact 9

The impact of this project on local economic development positive impact 92 negative impact 0 tolerable negative impact 0 no impact 4

• Situation of internet publishing Relevant information on construction of this project and abridged edition of environmental evaluation report were published on the website of http://www.shawan.gov.cn/ and http://www.leshan.gov.cn/site/SiteHuanBaoJu/Index.asp on May 10th 2011 and May 28th 2011 respectively. Up to now, no feedback is received.

The official version of environmental evaluation report will be published on http://www.shawan.gov.cn/ in September 2011.

11.4 The enterprise’s environmental image and ways of Jinfu has been long being concerned with the construction of environmental protection facilities and actively assisting and carrying out related policies and requirement of environmental protection departments, thus it builds good environmental image. Moreover, the enterprise maintains good communication with ambient villagers, able to resolve incurred and potential environmental dispute actively, properly and timely. Refer to annex 6 for the explanation of village committee of Shawan’er, Fulu Town.

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11.5 Conclusion of public survey The above survey results show the reflection of public to the enterprise is good, and enterprise gains support from local public with no one oppose it. With the development of national economy and constant improve of people’s living standard, people’s environmental protection awareness is also improving. The enterprise has gained public support.

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12 Suggestions on Implementing Environmental Monitoring to project The environmental management must be strengthened during the construction and operation period of project to ensure the normal running of project in construction and normal operation in operation period, as well as to eliminate the adverse impact on environment.

12.1 Environmental management Environmental protection management department Environmental management department must be established for enterprise’s environmental protection management and 5 -8 staffs shall be designated to conduct environmental protection management department.

Environmental management during construction period The responsibilities of environmental management during construction period are: Control environmental pollution and ecological damage, completely eradicate illegal construction, guide and monitor “three wastes” and noise treatment, and minimize the environmental pollution and ecological damage.

Environmental management during operation period The responsibilities of environmental management after the project is put into operation are:

1) Combine project techniques to carry out environmental protection guidelines of enterprise. Formulate environmental protection responsibility and regulations of each department and each position in line with environmental protection management system. Comply with national and local laws, regulations as well other relevant specifications. 2) Strictly implement environmental protection regulations. Set up and complete pollutant source record, environmental protection facility and technique process record during operation of project. Prepare pollutant discharge data sheet and running situation of environmental protection facility each month. 3) Conduct daily monitoring and maintain to environmental protection facilities and equipments, and record on file. 4) Conduct good environmental protection and safe production publicity and relevant technical training. 5) Strengthen management and set up emergency response system on abnormal discharge of waste water and waste gas, thus to minimize the impact of abnormal discharge. Be Responsible for the storage and utility of hazard chemicals.

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Organize Regular management, emergency response and evacuation measures of fire, explosion and poison prevention. 6) Assist local monitoring station to monitor waste gas, waste water and pollutant source. Check the disposal of solid waste. 12.2 Environmental monitoring The environmental monitoring of this project can entrust local environmental protection department to conduct. The monitoring contents include the following: 1) Waste water: the monitoring points of waste water are pollutant discharge outlet; the monitoring frequency is once a season; monitoring items include COD Cr , NH 3-N, SS and Volatile phenol. It is required to regulate waste water discharged outlet and equip with COD online monitoring facility. 2) Underground water: refer to environmental evaluation monitoring point, once a year. The monitoring indicators includes NH3-N,CODMn, smelling and taste, and color degrees. 3) Waste gas: The monitoring points are one at upwind of boundary and three at downwind of boundary to monitor disorganized discharge. the monitoring frequency is once a season; monitoring items include SO2 and NO2. 4) Boundary noise: monitored once half a year to monitor day and night equivalent continuous sound level A.

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13 Conclusions and Suggestions 13.1 Conclusions 1. Project overview Sichuan Jinfu Paper Co., Ltd (hereinafter referred to as “Jinfu”) originated from the Sichuan Fuhua Group’s acquisition of former Leshan bathroom tissue to set up Sichuan Leshan Fuhua Paper Co., Ltd and changed the name to the current name. It is a private business. The plant is located as Tangjiawan, Fulu Town, Shwan District, Leshan city, occupying 12.13 hectare (182 Mu). The total asset of the enterprise is 250 million RMB, with current pulp making capacity of 52 thousand Tons per year and paper making capacity of 57 thousand Tons per year. The major products of the enterprise are bleached bamboo pulp paper board, cultural paper, and bathroom tissue, etc.

Jinfu proposed to implement “energy conservation and discharge reduction technology upgrading project of pulp making system” centered with upgrading and updating of cooking and bleaching techniques, in order to change the situation of pulp production limit the enterprise development in technique and equipment levels. The project will fully improve the whole production technique of Jinfu, promote the Clean Production of Jinfu to a new level to reduce energy and material consumption, thus to eventually make sure the discharged waste water meeting the discharge limit in table 2 pulp and paper making joint enterprise in GB 3544-2008 which entered into effect on 1st July 2011. meanwhile, this project effectively reduces the POP in waste water such as AOX and Dioxin, etc, as well as the generation and discharge of odor pollutants special to paper making industry. In addition, this project will eliminate environmental risks caused by use of liquid chlorine.

This project plus pervious other technology renovation projects enable the enterprise reach the advanced level of China’s non-wood pulp paper making industry. This project will bring significant environmental benefit.

This project has been recorded in Leshan economy and information committee (Le Shi Ji Gai Record [2011] No. 11).

2. Compliance with national industrial policies This project is a technology upgrading project, the pulp making capability of the company will maintain at 52 thousand tons after upgrading. The major technology upgrading content is to replace CEHP four- stage bleaching process with chlorine dioxide ECF bleaching process, replace cooking-ball with vertical cooking-boiler and increase new oxygen delignification devices. This project belongs to “Encourage Type” in the “Guiding Catalogue of Industrial Structure Adjustment (2011)”-article 3 of light industry: the development and application of ECF and TCF chemical pulp

158 bleaching process. In addition, this project meets the requirements in “Paper Industry Development Policy” (notice of National Development and Reform Committee 2007 No.71). Therefore, this project complies with national industrial policies.

3. Compliance with local plan This project is conducted in current plant without requisition of new land. The plant is located at Fulu Town, Shawan District, Leshan City, which is a separate industrial and mining land (refer to annex for Certificate for the use of state-owned land) outside the city and town planned and built up areas of Shanwan District and Fulu Town. This project is technology upgrading of energy-conservation and discharge-reduction conducted in current plant, the environmental impact of enterprise after technology upgrading will also be reduced. Therefore, this project complies with local plan.

4. Environmental quality situation of area where enterprise located • Air quality Regional environmental situation monitoring shows that all monitoring indicator from monitoring points in evaluation scope meet requirements for the second level standard in “Ambient air quality standard (GB 3095 ）1996)”.

• Water quality Situation monitoring to each section of Dadu River Segments shows all pollutant indicators from surface water meet requirements for the Level III water in GB 3838-2002.

Situation monitoring shows all pollutant indicators from regional underground meet requirements for the Level III water in GB 3838-2002.

• Environmental quality for noise Situation monitoring shows all monitoring values of day and night from monitoring points at plant boundary meet requirements for the Level II in GB3096-2008

5. Environmental measures, discharge after meeting requirements and amount control • Environmental measures, discharge after meeting requirements Waste water: the waste water follows the principles of “separating clean water from waste water, separating rain water from waste water, separating different effluents from each other and treating them separately, multiple use of same water, repeat use and recycling use of water”. There is a waste water treatment plant to treat the medium waste water, cold waste water and domestic waste water. Currently all waste water is discharged to Dadu River through one discharge outlet.

The cooking black liquid is sent to soda recycling device without discharge. All discharge waste water including bleaching waste water, material preparation waste

159 water, chlorine dioxide waste water, light and cold waste water from soda recycling, and domestic waste water will be sent to waste water treatment plant for treatment. The waste water after treatment is discharged to Dadu River through pipelines after treatment and meeting the requirements in table 2 of Discharge standard of water pollutants for pulp and paper industry (GB3544—2008). Approximately 22% waste water is recycled for use in processes such as material preparation. This evaluation report requires enterprise to improve current anaerobic facilities of waste water treatment plants and improve pollutant eliminating ration of bio-chemical treatment system.

During the process of technology upgrading, water discharge system, pool of waste water treatment plant and waste water discharge pipelines shall be strengthened and repaired. All water pools, pulp tower, solution transiting containers, collecting tanks and storage tanks are all treated with seepage-proofing, and checked regularly for leakage and repair.

The spare volume of regulation pool of the waste water plant serves as accident water collection pool to collection leaked waste water, fire-fight water, emergency response water and rescue waste water during accident situations, thus to ensure no water will be discharged to Dadu River before bio-chemical treatment. Waste gas: the collected odorous gas from cooking is discharged after spaying and water washing and meeting the standard. The waste gas from washing, screening and bleaching is discharged after spaying and water washing and meeting the standard. Upon implementation of this project, the disorganized discharge of odorous gas will be will be significantly reduced and discharged after meeting the standard, which decreases impact on nearby air. The technology upgrading will maintain current width sanitary protection zone, and involve no relocation of residents.

Noise: The technology upgrading will take the same noise prevention and treatment measures with current ones, thus to maximize the use of reasonable layout, and realize standard noise at plant boundary after measures of noise reduction and sound insulation.

Solid waste: The technology upgrading will take the same solid waste treatment measures with current ones to realize solid waste recycling and bio-safety disposal.

• Amount control This project is a water pollutant reduction project, which will also reduce the amount of disorganized waste gas. After the completion of this project, the amount of

COD discharged by the whole plant is 252.5t/a, the amount of NH 3-N is 22.5t/a, reduced by 1.6t/a and 0.2t/a respectively. The amount of air pollutants has no change.

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The discharge amount of all pollutants shall be all within the amount designated to the enterprise by local environmental protection departments. Therefore, this project complies with amount control requirements.

6. Clean production This project follows the clean production principles in industrial policy, material utility channel, technique level, energy and water consumption, pollutant generation, waste comprehensive utility. Therefore, this project complies with requirements of clean production .

7. Environmental reasonability of site selection and general layout • Environmental reasonability of site selection: this project is conducted in current plant. The technology upgrading will reduce amount of discharged waste water and waste gas, decrease the environmental risks and accidents, thus the impact of plant on ambient environmental is reduced. The area where plants is located has no environmental limitation factors. Thus the site selection is feasible in terms of environmental protection. • Environmental reasonability of general layout: the enterprise occupies a land of 182 Mu, with the shape of rectangle. Before technology upgrading, the discharge sources of odorous gas from cooking workshop and soda recycling workshop are 100 m away from closest residents. After technology upgrading, the discharge sources of odorous gas will be even farther from closest residents, and disorganized waste gas discharge will be reduced significantly. The waste water is the lowest point, convenient for waste water collection and discharge. Thus the general layout is feasible in terms of environmental protection.

8. Project risk impact and risk prevention measures After technology upgrading, the related chemicals of this project are as follows: 1% chlorine dioxide solution, sodium chlorate, methyl alcohol, liquid caustic soda, sulfuric acid and hydrogen peroxide. Upon completion of project, the enterprise will no longer use chlorine for bleaching, and remove liquid chlorine tank which is a major risk source. The environment risk is reduced and the impact after environmental accidents is also reduced.

The enterprise’s soda recycling workshop current has a storage tank of 100 m 3 to collect black liquid of accidental condition, which will eliminate discharge of black liquid or stop black liquid from flowing to waste water treatment plant.

An accidental pool of 2500m 3 shall be constructed at waste water treatment plant. This accident pool is empty normally to ensure that waste water under abnormal situation will not flow into Dadu River, thus to ensure no waste water will flow into Dadu River before bio-safety disposal.

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Risk evaluation results show that this project has certain environmental risks; but after technology upgrading, Jinfu will no longer use chlorine, and chemical materials used after technology upgrading is not as hazardous as liquid chlorine, which largely reduces the enterprise environmental risks. Meanwhile, the enterprise takes reliable risk control measures. The environmental risks level is acceptable. Therefore, this technology upgrading project is feasible in terms of environmental risks.

9. Environmental impact evaluation • Air Situation monitoring shows that regional air quality meets the recruitments, reflecting the enterprise has no pollutant impact on local air, the production of the enterprise has limited impact on regional air quality. Moreover, upon completion of this project, the impact of enterprise on regional air will be reduced to certain content. This project will largely reduce the impact of disorganized discharge of odorous pollutant on ambient air; the steam consumption will be reduced after technology upgrading, which will reduce the impact of smoke from boiler. This project will impose positive effect on regional air quality.

• Surface water The routine monitoring of environmental quality in recent years reflects that each section of Dadu River Segments meet requirements for the Level III water in GB 3838-2002, which means the discharged waste water impost little impact on the water quality of Dahu River. This project is to reduce discharge of water pollutant, and will relieve the impact of enterprise on Dahu River. This project will impose positive effect on regional surface water quality.

• Underground water This project takes strict seepage-proofing measures. And monitoring shows that this project imposes little impact on regional underground water quality.

• Environment of noise Situation monitoring shows that this project takes relevant sound insulation and noise reduction measures, thus the noise at plant boundary meets the requirements which will not influence local residents.

• Impact of solid waste Solid waste generated from this project will be effectively utilized and treated with bio-safety disposal. In general, the solid waste imposes little impact on environment.

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• Impact of this project on resident relocation This project involves no resident relocation. 10. Public survey Public survey shows that local residents all support this technology upgrading with no one suppose it.

11. Comprehensive conclusion of environmental feasibility of this project This project is to upgrade the technology of pulp system, which will largely reduce discharge of waste water and water pollutant, impct of odorous pollutants from pulp system as well as the enterprise’s environmental risks. After technology upgrading, the pulp and paper making capability of the company will be not changed after upgrading.

This project complies with national industrial policies, and site selection complies with local plan. This project applies advanced and mature production equipments, complying with requirements of clean production. The completion of this project will further reduce discharge on the basis of all pollutants meeting required standards. There is no environmental limitation factor. Meanwhile, the operation of this project imposes little impact on environmental elements. Thus regional environmental functions will not be changed.

In summary, it is feasible in terms of environmental protection for Jinfu to conduct this technology upgrading at current plant site at Fulu Town, Shawan District, Leshan city.

13.2 Suggestions 1) The enterprise shall further implement clean production, and reduce energy consumption and material consumption. 2) The enterprise shall develop comprehensive utility of white mud. 3) The enterprise shall entrust environmental monitoring departments to regularly monitoring the change of AOX in waste water form bleaching and the change of odorous gas at plant boundary.

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Map 1: Location of the Company

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Map 2: Project Location

Map 3: Monitoring Sampling Sites

Map 4: Hydrological Map