Displaying items by tag: Nigeria
Nigeria: China’s CBMI and LafargeHolcim have held a signing ceremony for a 5000t/day cement plant upgrade project near Ewekoro. The deal follows previous collaborations between the companies in the country, including work at Ewekoro and Unicem.
Gypsum supply in West Africa
21 March 2018Lots of facts stuck out from the inaugural Global GypSupply Conference that took place in Brussels last week. One was that Spain exported 1.49Mt of raw gypsum to West Africa in 2016. The data point from Spanish customs popped up in a presentation by Mohamed El Moustapha, the managing director of a gypsum mining company based in Mauritania. He was using the figures to reinforce the opportunities for his company to supply the growing cement industry in West Africa. Yet the size of the market has implications for the oft-repeated claims of cement sector self-sufficiency that various countries in the region have cried out for.
Gypsum is used as a retarding agent to control the setting time of cement. It gets added whilst clinker is ground into cement. Roughly speaking, cement production requires about 5% of gypsum. So a 1Mt/yr cement plant would require around 50,000t/yr of gypsum. The crucial question for cement producers in West Africa is where is this gypsum coming from. Given that the Global Cement Directory 2018 places cement production capacity at just under 100Mt/yr in the region, this requires around just under 5Mt/yr of gypsum.
El Moustapha made out that there were no gypsum deposits in West Africa. This contradicts a study on Nigerian gypsum mining published in Global Gypsum Magazine in March 2016 estimated local reserves to be around 150Mt although to be fair to El Moustapha these appear to be relatively underused. This also doesn’t take into account sources of synthetic gypsum produced at coal-power plants although this is likely to be negligible at present.
Reserves in Mauritania appear to be much larger at 1.7Bnt. Instead, the problem here appears to be assisting the exploitation of mined gypsum by improving infrastructure and supply chain issues. El Moustapha’s company Samia reported that it exported 170,00t of gypsum to cement plants in West Africa, mainly via ship, but with a significant minority via truck overland to Mali. Another speaker at the conference from the Moroccan gypsum trader Cultura presented a snapshot of a more mature market with exports of 210,000t in 2017. However, similar issues with port infrastructure were also present. To this end the company was keenly looking forward to an upgrade project the Port of Safi due for commissioning in 2020 – 2022 that would allow larger ships to berth.
A market report on the gypsum and anhydrite market by Roskill in 2014 placed Egypt, Algeria and South Africa as Africa’s leading gypsum producers. In particular it singled out South Africa as the only sub-Saharan country producing more than 100,000t/yr of gypsum. In terms of usage of gypsum Roskill estimated that just over half of the world’s gypsum was used to make cement, followed by 38% for wallboard and plaster production and then 18% for agricultural usage. Although this compares to just over a quarter for cement production and most of the rest for wallboard production in the US, with its more developed wallboard market than the rest of the world, according to recent United States Geological Survey (USGS) data.
As the Global GypSupply Conference demonstrated plenty of raw gypsum is available around the world. However, since supply and price can vary considerably in the short term, cement producers are keen to secure steady sources. Developing gypsum sources in northern Africa are necessary to help build the West African cement industry, but the regions need to work together.
The 2nd Global GypSupply Conference will take place in spring 2020
Dangote Cement revenue grows as volumes fall in 2017
21 March 2018Nigeria: Dangote Cement’s sales revenue rose in 2017 but its sales volumes of cement fell. Its revenue rose by 31% year-on-year to US$2.23bn in 2017 from US$1.70bn in 2016. However, sales volumes of cement in Nigeria fell by 15.9% to 12.7Mt from 15.1Mt. Altogether, its sales volumes rose by 8.4% to 9.37Mt in the rest of Africa and fell by 7% to 21.9Mt in total. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 50.9% to US$1.08bn from US$713m.
“Although Nigerian volumes were lower in 2017, our Pan-African operations increased volumes by 8.4% and now make up 42% of the Group’s total cement sales, demonstrating the robust diversification of our business,” said Joe Makoju, Acting Group Chief Executive Officer of Dangote Cement. He added that the cement producer had increased its footprint from eight countries to 10 during the reporting period with the opening of new facilities in the Republic of Congo and Sierra Leone, while its operations in Cameroon, Senegal and Ethiopia achieved ‘strong’ sales growth during the year.
Regionally, Dangote Cement said that its estimate for the total Nigerian cement market fell by 18% to 18.6Mt in 2017 due to a recession in the first half of the year and higher prices. It also noted that its Gboko plant in Benue State was mothballed for ‘most of the year.’ Elsewhere, it said that it exported 174,000t of cement from Nigeria to Ghana. In Senegal it introduced 32.5R cement to its product range. In Sierra Leone it opened a 0.5Mt/yr terminal and bagging plant in Freetown in early 2017. In Tanzania it said that its plant at Mtwara had lost earnings due to its reliance on temporary diesel generators. Gas turbines are scheduled to start operation in March 2018.
Ashaka Cement to complete captive power plant in early 2019
26 February 2018Nigeria: Ashaka Cement plans to complete its 16MW captive power plant in early 2019. The subsidiary of Lafarge Africa and LafargeHolcim started the US$30.5m project in 2017, according to the Nigerian Guardian newspaper. Once operational the power plant will supply additional electricity to the national grid as well as supplying the neighbouring cement plant.
Nigeria: Workers at Lafarge Africa’s Mfamosing cement plant have complained about an alleged dominance of expatriates at the company. The workers say that most of the departments have been ‘taken over’ by foreign staff, according to the Punch newspaper. Affected divisions include utilities, security, logistics, finance and safety departments. However, Folashade Ambrose-Medebem, the director for Communications, Public Affairs and Sustainable Development at Lafarge Africa, has denied the claims. She said out of the 95 expatriate allocations approved by the Ministry of Interior for the Mfamosing plant only seven of the positions are occupied by foreign workers, a figure less than the 10% approved expatriate allocation rate.
Dangote Cement comments on BUA limestone dispute
19 December 2017Nigeria: Devakumar Edwin, the executive director of Dangote Cement, has accused BUA Group of illegally mining limestone at a site near Okene in the south of Kogi state. He made the comments at a press conference in response to public comments by Abdulsamad Rabiu, the chief executive officer (CEO) of BUA Group, that Dangote Cement had ‘sabotaged’ its operations, according to the This Day newspaper. The dispute between Dangote Cement, the Ministry of Mines and Steel Development and BUA is currently pending before the Federal High Court.
According to Edwin, Dangote Group first acquired an interest in the mining lease in 2014 after a previous company obtained the rights in 2007. However, BUA claimed access to the lease when it later purchased Edo Cement, a company also operating in the area. BUA Group responded to Edwin’s claims by stating that it does not have any operations in Okene, Kogi State where the disputed lease is located.
Ota pozzolana cement plant ready for commercialisation
15 December 2017Nigeria: Danladi Matawal, the Director-General, Nigerian Building and Road Research Institute (NIBRRI) said the institute’s pilot pozzolana cement plant at Ota in Ogun is ready for commercialisation. He has asked cement producers and other stakeholders to invest in the project, according to an interview with the News Agency of Nigeria reported upon by the Nigerian Sun newspaper.
The pilot project has a production capacity of 2t/day and it is ready for testing on an industrial scale. The unit was commissioned in May 2017 by Ogbonnaya Onu, the Minister of Science and Technology. NIBRRI is also planning a volcanic-based Pozzolana pilot plant in Bokos, Plateau that will be commissioned in 2018.
Nigeria: Osita Anthony Aboloma, the Director General of the Standard Organisation of Nigeria (SON), has blamed poor cement as a major cause of building collapses. He made the comments via a deputy at a technical committee meeting for the review of the standard for cement (NIS444-1.2014) in Lagos, according to the Nigerian Sun newspaper. The standard is being reviewed for the next five years.
Also at the meeting, Joseph Odigure, the chairman of cement standards at Council for the Regulation of Engineering in Nigeria (COREN) at the University of Lagos, was appointed chairman of the technical committee. Professor Garuba Abu was appointed as its Vice Chairman.
Mining ministry and BUA Group argue over mining dispute
05 December 2017Nigeria: The head of the Ministry of Mines and Steel Development has publicly rebutted accusations by Abdulsamad Rabiu, the chief executive officer (CEO) of BUA Group, that the ministry and Dangote Cement have ‘sabotaged’ operations at the company. Rabiu made the allegations in a letter sent to President Muhammadu Buhari, according to the This Day newspaper.
Rabiu says that the rival cement company and the ministry colluded in a legal dispute about operations at Okpella in Edo State and mineral resources. Allegedly, a militia attempted to damage the cement plant before security forces intervened. Later government officials and police tried to stop work at a BUA Cement mine despite on-going legal action.
Mohammed Abass, the head of the Ministry of Mines and Steel Development, responded by describing Rabiu’s accusations as, “…an unwarranted campaign of calumny against the ministry.” He added that the cement company was attempting to blackmail the ministry into granting a ‘free pass’ for illegal operations. The ministry says that it issued a Stop Work Order for the disputed mine in 2015 but that BUA Group ignored it and has continued to work at the site whilst the legal case was pending. Later, the staff of BUA Group resisted an attempt to shut the site down in mid-November 2017.
Dangote Cement to sell cement online with Jumia
05 December 2017Nigeria: Dangote Cement has signed a deal with retail firm Jumia Nigeria to sell cement online. Individual and corporate customers can buy a minimum of 300 bags of 50kg of Dangote Cement and have them delivered via the new service. The pilot initiative will cover Lagos, Port Harcourt and Abuja at launch.
“Dangote Cement decided to work with Jumia Nigeria based on its credibility and excellent performance over the years in online shopping management,” said Dangote Cement, Key Account Director, Chux Mogbolu. He added that the new scheme is intended to help stop online scams selling cement.