Assessment Report / Checklist Verified Legal - Sarawak Organization Details Company: Shin Yang Trading Sdn Bhd Ref #: GFSS 024-001 Address: Lot 515,Jalan Datuk Edward Jeli, Piasau Industrial Estate, 98008 Miri, Sarawak, Malaysia. Contact: Mr. James Wong Lieng Hiong / Mr. Lau Kiew Hieng Email: jameswong@shinyang.com.my / khlau@shinyang.com.my Tel: +6013 833 3568 / +6012 856 4237 Fax: +6085 664 999 / +6085 656 699 Statement of Compliance GFS LVS # NA Non Compliance to Criteria Issuance Date NA Expiration Date NA Assessment Details Scope of Assessment Shin Yang Forest License Area (T/3228) Assessment Dates 19-24 October 2015 GFS Lead Assessor GFS assessor & experts Organization Staff Dr. Kevin T. Grace Wong Ben Heang James Wong & Lau Kiew Hieng Report Date 30 Oct 2015
Summary Information Overview of Licensee Organization Information: Shin Yang Group has a number of associated companies that include natural Forest Timber Licenses as well as License to Plant Forests (LPF) within Sarawak, Malaysia. Current Licenses include: Item%% Licensee% License%% Date%% Total%Area% No.% %% No.% Expiry% (Hectare)) )) A)%Baram%Region% %% %% )) 01) Sarawak)Tourism)&)Leisure)Sdn)Bhd) T/9155) )27)Oct)2018) 59,598) 02) Shin)Yang)Forestry)Sdn)Bhd) LPF/0017) )18)Nov)2059) 65,178) ) Total% ) ) 124,776% )) B)%Tubau%Region% %% %% )) 03) Shin)Yang)Industry)S/B) T/3342) )16)June)2022) 219,380) 04) Shin)Yang)Trading)S/B) T/3228) )29)April)2020) 71,122) 05) STIDC)(Sarawak)Industry)Development) Corporation))) T/3432) )28)July)2019) 69,762) 06) STIDC)(Sarawak)Industry)Development) Corporation))) T/3577) )28)Mar)2017) 12,122) 07) Shin)Yang)Forestry)Sdn)Bhd) LPF/0018) )18)Nov)2059) 195,126) ) Total% ) ) 567,512% )) C)%Tetau%Region% )) )) )) 08) Forescom)Plywood)Bintulu)Sdn)Bhd) T/4321) In)process) 18,169) 09) Shin)Yang)Forestry)Sdn)Bhd) LPF/0019) 18/Nov/2059) 36,840) 10) Shin)Yang)Trading)S/B)))(Zedtee)Sdn)Bhd)) T/3284) 8/Mar/2024) 106,820) % Total% ) ) 161,829% % Grand%Total%% ) ) 854,117% Thus the total area managed under the Shin Yang Group of companies under Timber License & Licensed to Plant Forest is 854,117 ha
Key regulations : The legal framework is provided in the following laws (ordinances), rules and regulations: - Statement of Forest Policy (1954) - Forests Ordinance (1954, 2003, 2006) - Forest Rules (1954) - National Parks Ordinance (1956) - National Parks and Nature Reserves Ordinance (1998) - Wildlife Protection Ordinance (1958) - Sarawak Timber Industry Development Corporation Ordinance (1973) - Sarawak Timber Industry (Registration) Regulations (2008) - Sarawak Forestry Cooperation Ordinance (1995) - State of Sarawak Forest Timber License (FTL) - Inter-agency Standard Operating Procedures (SOPs) for Performance of Forestry Functions in Sarawak (Ministry of Resource Planning and Environment, 2012) Description & Licenses: Shin Yang Trading Sdn Bhd has a forest timber license # T/3228 granted by the Sarawak government authority for timber harvesting within a licensed area of 72,025 ha of natural forest of Forest. The Forest area is a Permanent Forest Estate. The Forest Timber License of 49,840 ha was initially issued to Jebadi Sdn Bhd on 30 April 1990 then transferred to Diamond League Sdn Bhd on 30 April 1999 and subsequently transferred to Shin Yang Trading on 13 June 2003. The License area was revised to include forest areas located by Sungai Kajang that expanded the License area to 72,025 ha. Date of expiry of the license by Sarawak Forestry Dept is 29 April 2020. Management / Land Tenure: is based on Forest Timber License T/3228 located in the Sungai Bahau Sungai Kahei and Sungai Kajang area in the Belaga District that was obtained by Shin Yang Trading on 13 June 2003 and expires on 29 April 2020 for all activities within the concession. Shin Yang Trading has formally subcontracted Shin Yang Sdn Bhd (97865-T) to conduct logging operations in the T3228 Timber license. According to the forest timber license for T3228: Yield Regulation is based on an Annual Licensed cutting area of 2,360 ha/year (working plan - page 5) under a planned rotation of 15 years based on estimated production area of 35,405 ha. Forest Timber License T/3228: Management System Cutting Limits: Dipterocarps 60+ cm dbh and non-dips 45+cm dbh (Working plan - page 5). Management planning (FMP): The revised General Plan (GP) has been approved by the Sarawak forestry Depart on 7 Dec 2012 (Ref # WPO.628.369(VII)-90) that covers 72,391 ha of the licensed concession inclusive of the international buffer zone of 1 km. The General Plan consists of a map of the license that was approved on 7 Dec 2012 & and valid through Dec 2020. A total of 10 re-entry coupes have been identified within the forest timber license area of T/3228. Land classification License (ha) General Plan (ha) Total Licensed Area : T/3228 72,025 72,391
Production Area 63,865 58,945 - Natural Forest Management Area 50,891 58,945 - Plantation Forest (ITP) 0 0 Protected Forest & Conservation Areas 8,160 6,853 Social Community & Agriculture NA 312 International Buffer zone (1 km) NA 6,281 Infrastructure, Roads Buildings, etc NA NA Description of forest area: The 72,025 ha natural forest area is located in the Sungai Bahau Sungai Kahei area in the Belaga District that is located along the Indonesian boarder. The forest consists of logged over Mixed Dipterocarp species dominated by Shorea species with larger trees located in steep slopes (35 0 and above) that approximate 6,853 ha that are now protected from logging. Previously areas over 35-degree slope were permitted for heli-logging. There is also a small area of Shifting Agriculture of about 312 ha in coupe 1A in the northern section of the License Area. Yield regulation consists of cutting trees 60 cm+ for Dipterocarp species and 45+cm for non dipterocarp species based on a area control method by dividing the operable area (net production area) by the length of the cutting cycle, which is 25 years. However the current coupe arrangement has been revised to include 10 coupes. The Sarawak Forestry Commission has approved 3 of the coupes (1AR; 2 AR & 3AR) based on submitted Detailed Plan maps. Permit to Enter Coupes has only been given for Coupe 1AR. Besides a 10% enumeration of harvestable commercial timber at Block level (ranging from 50-100 ha in size), no overall forest management inventory has been carried out. Minimum cutting limits are 60 cm dbh for Dipterocarp species and 45 cm for Non-Dipterocarp species. Environmental Impact Assessment: The EIA was conducted for T/3228 by CNF Consultancy Sdn Bhd (715028 U) dated April 2009. The EIA assessment report (environmental Impact Assessment; Proposed Re- Entry Forest Logging at Linau Kapit Division Sarawak under License T/3228. The Natural resources & Environmental Board (NREB) approved the EIA on 15 July 2009 (Ref # (12) NREB/6-3/2F/33. Key EIA Findings: The current vegetation is predominantly logged over Mixed Dipterocarp Forest (MDF). Patches of shifting cultivation with secondary vegetation may be found that includes: species of Macaranga, Adinandra, and Ficus. The forest has been subject to 8-year period timber harvesting from year 2003 to 2010. Most remaining trees consist of species of the Dipterocarp family (Shorea spp., Eugenia (Ubah), and non- Dipterocarp family Dialium (Keranji) and Lauraceace (Medang). The logged over lowland MDF areas associated with the less rugged Terrain Classes II and III (slopes less than 35 degrees) (based on the classification system used by FDS) will be salvaged logged while the MDF areas with the steep Class IV terrain (slope > 35 degrees) will be reserved as green belts and conservation areas for biodiversity conservation. Rivers associated with the project area includes: Sg. Kajang, Sg. Bangan, Sg. Malarang, Sg Baleh and Sungai Linau.
Fauna found in the area; 29 species of mammals 27 species of frog, 187 species of birds (CTC 1995). Presence of Borneon gibbon, red langur, pig-tailed macaque, barking deer and mousedeer were observed in the upper Batang Baleh River. Major group of birds included pigeons, hornbills, starlings, mynas and sparrows (April 2009 EIA report), spiderhunter, sunbird and flowerpecker were also observed. Recommended width of riparian buffer zone within project area based on rivers: Stream Width (m) Recommend Buffer (m) Sg. Kajang 30-40 40 Sg. Linau, Sg Kahai 10-15 10-20 Others smaller tributaies 5-8 10 Environmental Protection & Monitoring: The third quarter of 2015 Environmental Monitoring Report (Ref #: NREB/6-3/2F/33) dated from July to September 2015, reported the licensee (Shin Yang Trading) and the contractor (Shin Yang) has implemented most of the mitigating measures as specified in the EIA report. The highlights of the EMR 3 rd Quarter report: Water qualities were generally good. No oil and grease residue was detected in the water. No major pollution from the re-entry logging area. Shin Yang has yet to comply on: 1. Ensuring the flow in the latter is not obstructed while constructing or repairing the roads. 2. At workshop and fuel depot, EIA recommended Shin Yang to build oil sump and concrete pad to contain any leakage of oils. Issues that complied with recommendations: 1. Riparian vegetation at riparian zone should not be disturbed on control of soil and erosion and sediment. 2. Disposal of wastes should be regularly covered. Social Assessment: The Company has not conducted a separate social impact assessment but the EIA assessment included evaluation of longhouse Lidem that is the only longhouse associated with T/3228. Key Findings of Social Assessment: Shifting cultivation found on slopes along road, footpath or stream reserves. Fruit trees were grown durian, mangoes, pinang, rambutan, langsat, banana, etc. Other crops planted such as hill paddy, yam, tapioca and vegetables. Forest product collected such as rattan, bamboo and bemban for making handicraft such as floor mat, tray and basket. Hunting and fishing were no longer important for the local community to support their livelihood. Throughout the EIA assessment on April 2009, the monthly income range for Lg. Lidem household was from RM300 to RM600. For education, boarding primary school was available at Lg Kajang and Lusong. Whereas, secondary school was only found at Kapit or Bintulu. There is no public road or transport available, local community relied on existing logging road networks and rivers for transportation. There was no medical facility or clinic at the
project site, medical service provided at Klink Kesihatan Belaga. More severe cases mainly referred to Kapit or Bintulu General Hospitals. Water quality tested was moderately good. Social Monitoring: The Company has not conducted a separate social impact assessment and social monitoring. However, Shin Yang T/3228 has a good relationship between the Lg. Lidem community and the company. Based on the interview with Lg. Lidem, Tuai Rumah Mr Nareu Pua contacted with Linau Camp manager whenever the villages had issues. Itinerary of Assessment 18 Oct 2015 Travel to Miri, Sarawak Sunday 19 Oct 2015 Opening meeting; document review; planning for the field assessment. Monday 20 Oct 2015 Travel to Forest License area T/3228. Tuesday Checked License boundary 21 Oct 2015 Wednesday 22 Oct 2015 Thursday 23 Oct 2015 Friday Field evaluation of Coupe 2AR for road system; buffer zones and steep slopes. Checked blocks: 81-84; 76/77 & 55/54 Field evaluation of Coupe 1AR for logging operations, buffer zones, and steep slopes. Checked blocks: 71/72; 72/69; 70/71; 26/27; 37/38; water catchment areas 3/4 Evaluation of base camp; workshop; sanitation; storage of fuel and lubrication oils Checked log identification and records; royalty & transport records Meeting with Longhouse Ladem on agreement and issues related to T/3228 Travel to Miri; further document review & closing meeting, Highlights of Assessment Shin Yang Trading Sdn Bhd has not demonstrated compliance to the GFS LVS-005a requirements as noncompliance was identified in Criteria 4.3 & 5.3 during the assessment. Shin Yang Trading Sdn. Bhd. holds a Certificate of Registration, No. R. 0074/2003 as a timber license holder, issued by Forestry Department Sarawak on 01 st July 2003 is still valid and on annual renewal basis. Shin Yang Trading Sdn Bhd has a timber license# T/3228 granted by the Sarawak government authority for timber harvesting within a licensed area of 72,025 ha of natural forest of Forest. The Forest area is a Permanent Forest Estate. Date of expiry of the license by Sarawak Forestry Dept is 29 April 2020. Ref. 621 91 (H). The revised General Plan (GP) has been approved by the Sarawak forestry Depart on 7 Dec 2012 (Ref # WPO.628.369(VII)-90) that covers 72,391 ha of the licensed concession inclusive of the international buffer zone of 1 km. The General Plan consists of a map of the license that was approved on 7 Dec 2012 & and valid through Dec 2020. A total of 10 re-entry coupes have been identified within the forest timber license area of T/3228
The EIA reported that Longhouse Lidem was the only Longhouse located within 3 km from the Forest License Area T/3228 and had 312 ha of shifting agricultural land claims within the Licensed Forest area. Observed a simple agreement between Shin Yang and Longhouse Lidem for compensation. Based on an interview conducted with Longhouse Lidem, there is good communication and relationship according to the Lg. Lidem people and Shin Yang. The leaders of Lg Lidem can contact the Shin Yang camp manager to discuss any issues. The Detailed Plan also does not adequately identify buffer zones for permanent streams that often form the boundary of the blocks. Observed numerous buffer zones that were not identified on the Detailed Plan map while some were identified on the working map. Examples includes: Coupe 1AR Blocks: 71/72; 72/69; 70/71. Coupe 2AR Blocks: 81/82; 81/78; 76/77; 55/54. GAP 001/2015 (Major) First Aid Kits should be readily available for field workers and should include elements sufficient to provide emergency first aid as recommended by a doctor or hospital. No Emergency First Aid training was provided to key staff on handling serious injuries that can occur from logging activities. GAP 002/2015 (Minor) Some stream buffer zones were observed marked along the roadside following disturbance. Buffer zones for permanent streams under conventional logging systems would need to be marked throughout the block to prevent the fellers and tractor drivers from disturbing the areas. Observed disturbance of numerous buffer zones through road maintenance activities that need to be properly identified and rehabilitated. GAP 003/2015 (Major) Storage of fuel and lubricants need to be located within a containment area sufficient to prevent spillage and leakage into the ground. Scheduled waste and camp waste need to be controlled to ensure proper collection and disposal. GAP 004/2015 (Major) Logs are not traceable to harvest trees only to the block within the licensed coupe. Observed several logs that were undersized in relation to mid girth measurements and minimum DBH cutting limits. The smaller logs measured could be the second log of a felled tree that would result in a smaller mid girth diameter. Shin Yang does not have adequate records of tree felling within the blocks to verify that all trees felled and resulting logs meet the minimum diameter requirements. GAP 005/2015 (Minor) GAPs : Oct 2015 GAP # Type Checklist # Description 001/2015 Major 3.2.2 Inadequate system for identification and mapping of steep slopes and stream buffer zones based on NREB guidelines 002/2015 Minor 4.2.4 First Aid Kits should be readily available for field workers and should include elements sufficient to provide emergency first aid as recommended by a doctor or hospital. No Emergency First Aid training was provided to key staff on handling serious injuries that can occur from logging activities 003/2015 Major 4.3.2 Observed disturbance of numerous buffer zones through road maintenance activities that need to be properly identified and
004/2015 Major 4.3.4 005/2015 Minor 5.3.1 rehabilitated. Storage of fuel and lubricants need to be located within a containment area sufficient to prevent spillage and leakage into the ground. Scheduled waste and camp waste need to be controlled to ensure proper collection and disposal. Shin Yang does not have adequate records of tree felling within the blocks to verify that all trees felled and resulting logs meet the minimum diameter requirements. Outstanding Gaps: GAP # Type Checklist Status Description Highlights of Close out visit: Major Gaps 001/2015; 003/2015; 004/2015 need to be addressed prior to receiving a Statement of Compliance. Recommendations Shin Yang Trading Sdn Bhd has not demonstrated compliance to the GFS LVS-005a requirements as noncompliance was identified in Criteria 3.2.2, 4.3 & 5.3 during the assessment. Recommendations: Major Gaps 001/2015, 003/2015 and 004/2015 need to be addressed prior to receiving a Statement of Compliance. Gap 001/2015: Shin Yang needs to develop a system for identifying steep slopes, terrain class IV, through satellite imagery; GIS mapping and ground verification during field inventory. GAP 003/2015: Shin Yang needs to remove excess soil and debris from the buffer zones within Coupe 1AR & Coupe 2AR and rehabilitate the areas using cover crops and fruit trees that can provide future habitat for wildlife. Gap 004/2015: Shin Yang needs to demonstrate action on designing and construction of containment facilities for storage of fuel and lubricants that is sufficient to prevent spillage and leakage into the ground. Scheduled waste and camp waste need to be controlled to ensure proper collection and disposal such as used oil drums. The major Gaps should be addressed by January 2016. End of Summary Report
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