Displaying items by tag: Government
Ethiopian regional government demands that foreign cement producers offer jobs to unemployed
21 March 2017Ethiopia: Regional officials are demanding that foreign cement producers, including Dangote Cement and Derba Midroc Cement (DMC), should let cooperatives of unemployed young adults run part of their mining businesses. A draft contract drawn up by Oromia state’s East Shewa Zone administration wants the young adults to operate pumice mines for the cement producers, according to Bloomberg. The initiative follows attempts by the national government to alleviate social pressures, following violent protests in the state in late 2016 in response to over alleged land dispossession, political marginalisation and state repression. The local administration reportedly stopped production at the Dangote and DMC plants in early March 2017 while it discussed its proposals with the producers, according to local press.
Indonesia: State-Owned Enterprises Minister Rini Soemarno says that President Joko Widodo is expected to inaugurate Semen Indonesia’s Rembang cement plant in April 2017. Soemarno made the comments following a visit to the plant, according to the Jakarta Post. The inauguration of the plant is dependent on environmental clearance, which should be completed in April 2017. However, the plant has been the focus of intense protests by local farmers and both the Supreme Court and a local government ruled to shut down the plant.
Nigerian Government commends Dangote Cement for role in self-sufficiency in cement industry
20 March 2017Nigeria: Kayode Fayemi, the Minister for Solid Minerals Development, has commended Dangote Cement’s role in making Nigeria self-sufficient in cement. He said that it was a success story that the country had moved from importing 60% of its cement to meeting local demand with excess available for export. The Cement Manufacturing Association of Nigeria originally declared the country ‘self sufficient’ for cement in 2012.
“We need to collaborate and partner in these areas at this time that government is trying to reduce the dependence on oil. We need to turn around our mineral resources just as in the cement sector. When you look at our solid mineral industry, there is a wide gap between what we can produce and what is consumed. Imports in these sectors is huge,” said Fayemi. He added that the government wants to replicate the success of the cement industry in other non-oil sectors to diversify the economy. He made the comments as part of a tour to the Ibese plant in Ogun State.
Dangote Cement saw its earnings before interest, taxation, depreciation and amortisation (EBITDA) fall in 2016 as the Nigerian economy entered a recession. Despite this it grew its revenue and sales volumes with an emphasis on growth outside of its home country. The cement producer exported 0.4Mt of cement in 2016. However, the company has also faced allegations of dumping in Ghana.
PPC Zimbabwe boss blasts cement imports from Zambia
20 March 2017Zimbabwe: PPC Zimbabwe’s managing director Kelibone Masiyane has said that duty on cement imports has done little to discourage the market. The government introduced a 25% duty on every 100t of imported cement in 2016, according to the NewsDay newspaper. He singled out imports from Zambia as well as those from South Africa, Mozambique and Botswana.
“In addition to liquidity challenges, we continued to face pressure from cheap imports. Government has tried to assist by introducing duty on imported cement, but the reality on the ground is that imports continue to pour in, particularly from Zambia,” said Masiyane. Despite this he added that PPC Zimbabwe was confident that the local economy would pick up in 2017 supported by infrastructure projects.
The Cement and Concrete Institute of Zimbabwe lobbied the Ministry of Industry and Commerce to ban imported cement in 2016. In a paper it suggested including a protection tariff to equate the landed price of imported cement to the cost of the local product, granting of import licences to local producers, cancelling or reviewing all issued permits that are circulating in the country and lowering duty on raw materials.
Government reveals more detail on plan to sell non-operational units of Cement Corporation of India
17 March 2017India: Babul Supriyo, the Minister of State for Heavy Industries and Public Enterprises, has revealed that the government is planning to sell five plants in the first phase of its divestment of non-operational units of the Cement Corporation of India (CCI). In a letter to the Indian parliament he said that plants at Mandhar, Kurkunta, Bhatinda, Nayagaon and Charkhi Dadri would be sold first, according to the Press Trust of India. However, legal issues at Delhi Grinding Unit (DGU), Adilabad and Akaltaraneed need to be resolved before these plants can be sold. No value for the sale has been set yet as the plants have not been valued.
Tabuk Cement acquires export license
17 March 2017Saudi Arabia: Tabuk Cement says it has obtained an export license from the Ministry of Commerce and Investment. The licence will be valid for one year, according to Mubasher. Sales volumes of cement fell by 25% year-on-year to 4Mt in February 2017.
Tanzania: The Ministry of Energy and Minerals has given Dangote Cement a 10km2 plot of land in Ngaka, Ruvuma to mine coal. The decision follows the acknowledgment by President John Magufuli that Tancoal, the local coal producer, is unable to meet domestic demand, according to the Citizen newspaper. At present manufacturers are unable to import coal from South Africa due to a government ban. In late 2016 Dangote Cement made a deal with the government to supply natural gas to its cement plant at Mtwara following a temporary shutdown at the site.
Chinese planners consider 10% cut in cement production
09 March 2017China: The National Development and Reform Commission (NDRC) is considering aiming for a 10% cut in cement production. The Chinese state planning body announced on 6 March 2017 that it is pushing to cut production capacity in a number of industries including coal, steel and cement, according to the Nikkei Asian Review. Some sources place Chinese cement production capacity at up to 3.5Bnt/yr and 30% of this is believed to be surplus. The commission intends to cut production capacity through market control and legislation. The change in policy from the NDRC coincides with the third consecutive year that China’s annual target for real economic growth has been lowered.
US: Orcem Americas, a subsidiary of Ireland’s Ecocem, has been refused planning permission to build a slag cement plant in Vallejo, California. The cement producer was hoping to build a US$50m grinding plant but it faced opposition from local residents on environmental grounds, according to the Irish Times. The issues for the planners was an anticipated increase in the number of trucks on local roads and pollution from the plant. Orcem Americas can now appeal the decision to Vallejo’s City Council if it chooses.
Brunei modifies cement import process
07 March 2017Brunei: The Energy and Industry Department at the Prime Minister’s Office (EIDPMO) has released information on its new policy for importing cement and the connected application process following the abolition of the previous method on 1 January 2017. Officials say that the changes are intended to open up the cement market in the country, increase competition, offer more market choice and reduce the price of cement amongst other aims, according to the Borneo Bulletin newspaper. Cement importers are required to register, their companies need to be at least 70% locally owned and applications will last two years. Personal allowances for citizens bringing cement across the border will be limited to two bags per vehicle.