Egypt: Suez Cement Company has announced plans to invest US$42.8m to convert two out of its four plants to use coal instead of natural gas following a controversial government decision to import coal as a means of addressing power shortages.
The conversion process for each plant will cost around US$21.4m, according to Mohammed Shanan, Suez Cement's business development director. Another company source estimated the overhaul will take between 6 - 8 months. The company is still waiting for final approval from the Ministry of Environment to use coal in the production of cement.
Suez Cement's production fell by 50% during the first quarter of 2014 as a result of fuel shortages, which has led to a 50% decline in sales.
The Egyptian Cabinet approved the use of coal for power generation in April 2014, despite the disapproval of Minister of Environment Laila Iskandar. The Egyptian government had cut natural gas supply to plants in an attempt to conserve energy resources.
A number of non-governmental organisations, including the Egyptian Initiative for Personal Rights, condemned the decision to use coal in a statement in April 2014, forecasting that it will have 'devastating consequences on health and the economy.' The Egyptian Centre for Economic and Social Rights, with support from the Doctor's Syndicate, has filed a lawsuit against interim Prime Minister Ibrahim Mehleb, President Adly Mansour and the ministers of trade, petroleum, electricity and environmental affairs in an attempt to block the use of coal in Egypt.
