Displaying items by tag: Government
Shree Cement facilities raided by tax authorities
22 June 2023India: The government's income tax department has carried out raids at five locations belonging to Shree Cement. Reuters has reported that the authorities said they conducted 'survey action' on 21 June 2023.
Hoffmann Green Cement Technologies to build four clinker-free cement plants in Saudi Arabia
21 June 2023Saudi Arabia: Hoffmann Green Cement Technologies (HGCT) and property developer Shurfah Holding have signed a letter of intent to conclude a licensing agreement for use of HGCT’s technology by the state-owned construction firm. BusinessWire News has reported that HGCT plans to build four new units to produce its clinker-free alternative cement in Saudi Arabia. Construction will begin in 2024. Shurfah Holding said that the partnership signals progress towards the development of smart cities under the state’s Vision 2030 economic plan.
HGCT co-founders Julien Blanchard and David Hoffmann thanked Shurfah Holding and said that the partnership represents an acceleration in the producer’s international development.
Afghanistan: The government of Afghanistan claims that five new cement plants will imminently commence construction across five Afghan provinces. Acting Mines and Petroleum Minister Shahabuddin Delawar said that plants are planned in Herat, Jawzjan, Kandahar, Logar and Parwan Provinces. When operational, the plants should make Afghanistan self-sufficient in its cement supply.
India: The Goods and Services Tax Council will review the current imposition of a 28% goods and services tax on cement on 11 July 2023. The Telegraph newspaper has reported that the council is expected to recommend a reduction in the tax rate to the 18% band. Parliament’s Group of Ministers on Rate Rationalisation will then consider the recommendation.
China Energy to accelerate Samarkand cement plant construction for commissioning in 2024
19 June 2023Uzbekistan: China Energy and the government of Uzbekistan have set a resolution to inaugurate the upcoming 3Mt/yr Samarkand cement plant before the end of 2024. Within the same timeframe, China Energy will launch 400MW-worth of new solar power plants in Bukhara and Kashkadarya. The China-based utilities company will subsequently expand its solar power capacity in Uzbekistan to 1000GW.
Uzbekistan Daily News has reported that China Energy and the government committed to cooperating further on the development of a programme for the implementation of joint projects, including more new 'production plants' and renewable energy infrastructure.
Afghanistan: Jabal Saraj Cement has more than tripled its production of cement at the Jabal al-Saraj cement plant to 70t/day from 20t/day. Salam Watandar Online News has reported that the company has asked the government to expand the Jabal al-Sarraj plant's capacity to 3500t/day, to better realise the potential of local raw materials and labour.
US: Heidelberg Materials North America inaugurated its 2.4Mt/yr Mitchell cement plant in Indiana on 14 July 2023. The plant is equipped with a 3600 bag/hr rotary packer, and also boasts a 154,000t-capacity clinker storage dome. It will produce Heidelberg Materials North America's EcoCem Portland limestone cement (PLC), alongside other products. The producer said that the new plant will help to address US cement supply chain constraints amid a planned US$110bn infrastructure overhaul.
Heidelberg Materials North America president and chief executive officer Chris Ward said "The plant will reduce CO2 emissions per tonne of clinker by almost 30%, mainly through operating on natural gas. Our investment in the Mitchell facility helps us lower our carbon footprint, while serving the growing demand for more sustainable products in this key market.”
Cembureau welcomes EU Nature Restoration Law
16 June 2023Europe: The European cement industry association, Cembureau, has welcomed the enactment of the Nature Restoration Law, which aims to restore ecosystems through binding targets in line with the EU Biodiversity Strategy. The European Commission says that the law provides a framework to 'secure the things nature does for free, like cleaning our water and air, pollinating crops and protecting us from floods,' as well as to help limit climate change to +1.5°C.
In a joint statement with other extractive industry bodies, Cembureau told the EU that member states' national restoration plans should take into account industry efforts to plan and implement nature restoration, that member states should protect pioneer species in line with the Nature Directives Species Protection Guidelines' definition of temporary nature and that restoration efforts outside of designated Natura 2000 areas should be addressed on a case-by-case basis in recognition of sectoral specificities.
Update on Bangladesh, June 2023
14 June 2023Cement producers in Bangladesh received a surprise at the start of June 2023 when the government budget proposed increasing the duty on imported clinker. The Bangladesh Cement Manufacturers Association (BCMA) reacted this week by calling for the duty on clinker to be reduced, while also calling for the same for a non-adjustable advance income tax (AIT) applied to associated imports and sales.
During a press conference, reported upon by the Financial Express newspaper and other media, BCMA president Alamgir Kabir said that the customs duty on key raw materials for the sector had previously been around 5% of the import value. However, he argued that the new suggested increased tariff was “disproportionate” because it placed the burden at 12 - 13%. He urged the government to treat the cement sector as a "priority sector" given that it was facing higher prices generally due to the aftermath of the Covid-19 pandemic, the energy shocks from the Russian invasion of Ukraine and negative currency exchange effects.
The BCMA’s latest lobbying call may sound familiar because it follows a similar battle against import charges from late 2022. A supplementary duty was introduced in November 2022 when the National Board of Revenue (NBR) changed the way limestone was coded in response to a significant increase in imports from 2020. At the time, the price of limestone imports reportedly nearly doubled. The BCMA may have won this battle because in March 2023 the NBR withdrew its supplementary duty. It did require that importers submit to further scrutiny including an updated Import Registration Certificate and various tax related requirements.
The timing of the NBR’s decision to relax the limestone duty is telling given that the previous month or so six of the country’s seven publicly listed cement producers reported either falling profits or losses for the second half of 2022 or the year as a whole. Only LafargeHolcim Bangladesh bucked the trend with an increase year-on-year in its annual profit after tax in 2022, although it attributed this to 95% volume growth in its aggregates business.
As discussed previously a characteristic of the cement sector in Bangladesh is that the country has no domestic limestone reserves. It all has to be imported. Arusha Ahmed Khan, Shun Shing Group presented a summary of the national industry at the Global Slag Conference that took place in early June 2023 in Düsseldorf. The country has two integrated cement plants and 36 grinding mills operated by 31 companies with a total capacity of 84Mt/yr. At present around 14Mt/yr of new cement grinding production capacity is planned by UK Bangla Cement, MI Cement, Confidence Cement and Dubai Bangla with commissioning dates expected from mid-2023 to mid-2025. Khan revealed that the government switched from British to European standards in the early 2000s leading to a high level (95%) of blended cements on the market. Use of slag cements has grown as more producers commission vertical roller mills and more uptake of slag and other blended cements using secondary cementitious materials (SCM) is expected in the future.
A key vulnerability for a grinding-heavy cement sector, like the one in Bangladesh, is any burden on imports such as logistic costs, currency exchange effects and government tariffs. Sure enough each of these examples has been reported locally. The government says that its proposed higher import tariff on clinker is the first such change in a decade. Cement producers have reacted, predictably, in a negative manner. Whether the authorities go ahead with the planned increase and how well the cement sector could absorb it remains to be seen. There may never be a good time for a tax rise but the BCMA has been able to present the current period as being especially bad.
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Switzerland: The UN Secretary General, António Guterres, addressed a meeting of the Global Cement and Concrete Association (GCCA) in Zürich, Switzerland, on 13 June 2023. Guterres reiterated the role of cement as 'fundamental to building a better world.' He called on GCCA members to realise the association's 2050 Net Zero Roadmap in order to limit the rise in global temperatures to 1.5°C.
Guterres said “Science tells us that requires cutting global greenhouse emissions by almost half by 2030. That means taking a quantum leap in climate action – and slashing global emissions. Starting now.”
GCCA Thomas Guillot said “We applaud all the action our members are taking to implement carbon-cutting measures, and the latest data show emissions are coming down. But many challenges remain, which we must overcome, if we are to achieve net zero, including enabling polices and regulations from governments across the world which often don’t yet exist.” He added "I urge every manufacturer across the world who has not yet done so to join our pledge to eliminate emissions by 2050, But I also implore all governments to work with our essential industry, to deliver the policy framework that can create the favourable conditions to unlock the transition.”