SOUTH AFRICA – Paper and packaging group Sappi has been ordered to pay US$0.44 million (R8m) after pleading guilty to contravening environmental law by exceeding sulphur dioxide emissions at its Saiccor Mill in Umkomaas, KwaZulu-Natal, according to the National Prosecution Authority (NPA).
The NPA said the Scottburgh Regional Court imposed an R8 million fine on Sappi for the emissions between July 2012 to December 2014.
The fine, however, was suspended on condition that the company comply with a confiscation order and pay US$0.28 million (R5m) to the eThekwini municipality and US$0.17 million (R3m) to the Criminal Assets Recovery Account by 28 April.
“In the plea, the company conceded to the excessive emissions, stating that this was due to technical and/or operational challenges,” the NPA said.
“They mentioned that they addressed such problems when they arose in an attempt to remedy the situation and operate with the parameters of their [atmospheric emission] license.”
Sappi said on Saturday it would make the two payments before the deadline, as part of an agreement it reached with Green Scorpions, the Environmental Management Inspectorate, over the emissions.
“The agreement follows extensive engagements that commenced in 2021 after Sappi was first notified of findings by the EMI during 2017,” noted the company in a statement.
President Cyril Ramaphosa officially opened a US$423.70 million (R7.7bn) expansion and environmental upgrade project at the Saiccor Mill in September 2022.
Sappi said that US$209.10 million (R3.8bn) was spent ‘achieving a reduction in the mill’s water consumption, effluent, waste to landfill, sulphur dioxide emissions and carbon dioxide fossil emissions.’
“Sappi takes its environmental compliance duties and responsibilities extremely seriously and strives to continuously improve and enhance compliance and reduce the business’s environmental footprint,” it said in the statement.
Sappi said over US$1.10 million (R20m) was spent on various upgrade interventions and maintenance programs regarding water consumption and air emissions between 2017 and 2022 and has committed approximately US$5.50 million (R100m) committed to upgrades between November 2022 and March 2024.
The news of the court ruling comes shortly after Sappi’s share price fell over 5% after it confirmed that the US$297.14 million (about R5.4bn) sale of three of its mills in the Netherlands, Germany, and Finland to the German investment group Aurelius had lapsed and the transaction will not proceed.
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