Displaying items by tag: Plant
Update on Mali
11 September 2019The news from Mali this week is that a new cement grinding plant is in the works. Ciments et Matériaux du Mali plans to build a 0.5Mt/yr plant near Bamako. Work on the US$34m project is set to start in October 2019 although there has been no word on the equipment supplier. The project is a long-standing one from France’s Vicat.
A new plant is probably very welcome following the last six months in the local market. Prices spiked by a third in May 2019, leading local producer Diamond Cement Mali to arrange a press conference to defend itself. Director Ibrahima Dibo explained that the company had fixed its prices in conjunction with the government at its units at Astro and Dio Gare since 2012. Instead, he blamed importers and traders for the situation, as well as low import rates from Senegal and Ivory Coast. The company proposed that it tackle the situation by importing more cement from one of its plants in Takoradi in Ghana and then transporting it into Mali via Dakar in Senegal. Although it noted that it would need permission from the government to do this.
The country has also been targeted by Nigeria’s Dangote Cement for several years. Back in 2016 the Nigerian cement producer was considering building a 1.5Mt/yr grinding plant. It also wanted to build a second production line at its Pout plant near Dakar in Senegal to export clinker specifically to Mali. It has since scaled back its expansion plans as the Nigerian economy entered a recession but in its 2018 annual report it noted that it had exported 0.43Mt of cement from Senegal and that most of this had gone to Mali, with plans to further increase exports in 2019.
At present Mali has three main grinding plants. Two are run by Diamond Cement and the third by Ciments de l'Afrique (CIMAF). An integrated plant at Guinbané, Diéma in the Kayes region was announced in late 2016 when the government signed a memorandum of understanding with Gaia Equity, a private equity company. This project was going to be built by China’s Sinoma.
Figure 1: Distribution of cement prices in Africa and Location of Plants 2015. Source: World Bank / ECDPM.
The status of that last project is unknown since there has been little news on it since. However, Figure 1 above shows why a private equity firm might sense opportunity. It’s out of date as various countries have become self-sufficient and we’ve covered this plenty of times before but the graphic from the World Bank really brings home the message that moving cement overland is uneconomical. This is mirrored by the mounting price of cement in Mali earlier this year. Africa has been described as the last great cement frontier and Mali is on the frontline.
Premiere Slag plans facility to ‘process and sell cement’ in Mabini
11 September 2019Philippines: Premiere Slag has received an investment of US$1.95m from the Philippines’ AbaCore Capital Holdings for the construction of a cement facility in Mabina, Luzon.
Ras Al Khaimah Cement backpedals on plant and quarry acquisition
11 September 2019UAE: Failure of financing has put a stop to Ras Al Khaimah’s intended purchase of an 0.6Mt/yr integrated white cement plant in Fujairah and its associated quarry. Reuters has reported that the estimated US$123m deal will not be going ahead.
Turkmenistan plant exports cement to Uzbekistan
10 September 2019Turkmenistan: The state-owned 1.0Mt/yr integrated Lebap cement plant has exported 0.2Mt of cement to neighbouring countries in the eight months to the end of August 2019. Uzbekistan received the majority of this. Neitralnii has reported that the plant has produced test batches of cement using basalt instead of its usual iron ore. It has noted increased durability, density and frost resistance, as well as lower costs and financial impact. The substitution of the locally-sourced ferrous rock for imported haematite is part of the central Asian country’s state programme of import substitution.
Cemex’s Barangay Tina-An cement plant revises operating hours
05 September 2019Philippines: Cemex’s subsidiary APO has stopped operations at its Barangay Tina-An cement plant in Naga during morning and afternoon/evening rush-hour to ease the city’s traffic congestion problem. The Philippine Star has reported that lorries dispatching cement from the 4.0Mt/yr integrated plant were a cause of traffic build-up on the Pan-Philippine Highway. Ignacio Mijares, President of Cemex Holdings Philippines, agreed to the restriction following a meeting with Gwendolen Garcia, Governor of Cebu Province. Representatives of Cemex and regional government will meet next week to discuss the working of the solution.
The disruption to production follows the introduction of tariffs of US$4.81/t on imported cement.
Loma Negra converts San Juan plant to grinding
04 September 2019Argentina: Loma Negra has converted its 0.2Mt/yr San Juan integrated cement plant to grinding and bagging only. 14 people have resultantly lost their jobs, five of whom have accepted relocation to the company’s Catamarca plant. Catamarca is the largest of Loma Negra’s seven production facilities in Argentina, with a cement production capacity of 1.8Mt/yr.
Dangote Cement considering US$322m cement plant in Niger
28 August 2019Niger: Dangote Cement has expressed an interest in establishing a 1.64Mt/yr cement production unit, complete with a grinding plant and gas energy plant, in Niger. Agence Ecofin reports that Dangote, Africa’s leading cement producer, aims to fill the Nigerien cement supply gap amidst an infrastructure boom fuelled by the country’s oil ambitions.
Russia: Eurocement has appointed Stefan Noev as the chief executive officer (CEO) of its Maltsovsky Portland Cement subsidiary. The company operates a 4.2Mt/yr integrated plant in Bryansk Region. Noev is a graduate of the Technical University of Sofia in Bulgaria and he has worked for Italcementi and Suez Cement. He joined Eurocement in 2016 and managed its Sengileevsky integrated plant in Ulyanovsk region.
Argos Panama to expand Buena Vista cement plant
21 August 2019Panama: Argos Panama plans to install a line for the production and storage of clinker at its plant in Buena Vista, Colón Province. In an environmental impact study submitted to Panama’s Ministry of Environment, Argos estimated the total cost of the project, called the Balboa Project, at US$168m.
Afghanistan: The Afghan Ministry of Mines and Petroleum has reported progress in discussions on projects totalling an investment of US$350m, including improvements to the Jabal Siraj and Samangan cement plants worth US$170m and US$136m respectively.
Wadsam reports that the Afghan Chamber of Commerce and Industries has voiced concerns as to delays caused by the lengthy approval process for the ‘much-needed projects.’ With the successful conclusion of these talks, the plans will require the ratification of the High Economic Council and subsequently the Afghan Cabinet.