Approving Certification Body:

SGS South Africa (Pty) Ltd - Qualifor Programme

PO Box 82582

Southdale

South Africa

2135

E-mail Address: Foretry@sgs.com

Date of Risk Assessment

14/06/2011

Comments:

Approved

Date Approved:

14/06/2011.

Country:

South Africa

District

Mpumalanga, Kwa-Zulu Natal

Risk Assessment Level

(indicate the risk for the different levels)

Country

District

FMU

Unspecified risk

Low Risk

Low Risk

Type of source e.g. natural forest or plantations and general description of the supplier

Plantation timber is sourced through the following sources:

Co-operatives- Plantation timber is supplied through a Co-operative. A group scheme amongst the members is implemented. Some of the members are not certified. Member’s farms are predominantly from KZN and Mpumalanga.

Small growers have their own plantations and source additional timber in their immediate areas. These are medium sized growers who supply a number of markets.

One particular supplier sources its timbers from suppliers who’s timbers have been rejected at the chipping mills in the Richards Bay area for varies abnormalities in specified log specifications. The supplier will then prepare the rejected timber and supply ShinCel and this timber comes in as non-FSC timber

Independent suppliers do not have their own plantations but sources its timbers from private growers in the Zululand and Mpumalanga areas

ShinCel has employed staff that procures timber from small growers in Zululand and Mpumalanga. This timber is verified and delivery tickets are issued for timber purchased.

Results (Low or Unspecified Risk and motivation:

Low Risk – Although South Africa is considered unspecified risk on Transparency international (4.8) when taken to District and FMU level the risk is considered low. These findings are detailed below.